G8 Education sees a 20% fall in profit

Company News

by Rachael Jones

G8 Education (ASX:GEM) today announced its results for the half-year ended 30 June 2019 showing net profit after tax (NPAT) reduced 20 per cent on the prior corresponding period to $19 million.

This was impacted by the implementation of the new Accounting Standard Leases Standard.

Revenue of $430.6 million is a 9 per cent increase on the prior corresponding period driven by occupancy, fee growth and acquired centres.

Average like-for-like occupancy grew 1.5 per centage points over the pcp, driven by the implementation of the customer engagement centre, group-specific initiatives and the Child Care Subsidy (‘CCS’) which has improved affordability for families.

Shares in G8 Education (ASX:GEM) are trading 15.69 per cent lower at $2.31.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.