G8 Education notes supply exceeds demand

Company News

by Rachael Jones

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Last Updated: 23/01/2020 3:13 PM

G8 Education (ASX:GEM) has released details from their 2018 Annual General Meeting.

They noted increased supply of childcare places and their focus on growing occupancy.

In 2017 the level of supply growth exceeded demand growth by around 2.5 per cent.

While the supply/demand imbalance is projected to persist until June, the implementation of the new Child Care Funding package is forecast to increase demand from July 2018.

This analysis confirms that 95 per cent of existing G8 families will be better off under the new funding package, with a significant proportion of these families having substantial reductions in their out of pocket costs, allowing for increases in day care at no or little extra personal expense.

Shares in G8 Education (ASX:GEM) are down 3.2% to $2.41.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.