GEM +13.57%: two month highs for the childcare centre operator today, the company provided 2023 guidance that was better than expected. They now see Operating EBIT at $99-102m and NPAT at 62-64m, coming in ~5% ahead of consensus on both fronts. Occupancy had improved marginally since the company’s October Investor Day, however, it appears cost control was the main driver for the improved performance which includes divesting or cutting a number of underperforming sites. The guidance shows a marked improvement from the first half where G8 posted operating NPAT of just $19.6m.
MM remains neutral GEM
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