PROFITS NOW CHILD’S PLAY FOR G8

Written on the 27 February 2012

PROFITS NOW CHILD’S PLAY FOR G8

G8 Education Limited (ASX:GEM) has more than doubled its net profit for the full year ending December 31 as it pushes ahead to become Australia’s largest childcare services provider.

The company’s underlying net profit after tax was up 207 per cent to $13.91 million from $4.52 million the previous year, while revenue grew 115 per cent to $142.90 million from $66.55 million.

Earnings before interest and tax were up 262 per cent from $6.87 million to $24.88 million, while net profit before tax was up 309 per cent from $5.55 million to $22.69 million.

Expenses increased by 98 per cent from $59.68 million to $118.02 million as it acquired 53 centres and sold seven underperforming centres.

There will be smiles all round for stakeholders in the company today, as it announced it would increase its annual dividend from four cents to six cents per share per annum.

Managing director Chris Scott is also smiling after his remuneration of $890,315, jumped by $555,880 on the previous year in which he earned $334,435. That rise was largely the result of $520,000 in share-based payments he did not receive in 2010.

“The result for the 2011 full year is excellent,” says Scott.

“It shows that, operationally, G8 Education is delivering for all stakeholders. Our team has integrated and continues to integrate a significant number of child care service businesses in a way that exceeds expectations.

“G8 Education continues to perform strongly and is well positioned for further growth through acquisitions.”

Today’s result was above guidance with a 9 per cent better than expected NPAT.

Dividends are paid quarterly and as a consequence the quarterly dividend will increase from one cent per share per quarter to 1.5 cents per share per quarter.

“This increase reflects the strong performance of our operations,” says Scott.

The company has 142 centres, seven of those in Singapore, while it has another 64 managed or franchised centres in Singapore.

It can care for a total of 10,486 children per day and has 3118 employees, 2870 of them in Australia.

The company is still awaiting judgement on the legal proceedings between with Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to contractual arrangements between the parties.

The case is expected to wrap up early this year.

G8 shares today rose 4.8 per cent to 86 cents a unit.


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter