01/11/2023 09:02

G8 Education (GEM) 95c

While we are in no rush to buy back into G8 Education just yet, their weaker trading update last week pushed the shares ~12% below the level we exited, and we’re now adding the childcare operator back on the Hitlist for the Income Portfolio. At a strategy day on the 26th of October, they provided a trading update that was softer than expected, along with a plan to sell 31 underperforming centres. They outlined weaker occupancy (-1.4% YoY for the week ending 22 Oct) versus expectations of an improving trend.

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23/08/2023 09:20

G8 Education (GEM) $1.08

The childhood education and care provider with over 430  centres is one of the largest in Australia with a particular focus down the East Coast, although they also have some centres in WA. They operate under brands such as Jellybeans, Greenwood, Kool Kids, Bambinos and more.

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22/08/2023 12:41

Active Income Portfolio – Amendment

We are selling our 3% holding in G8 Education (GEM) following todays 1H23 results announcement. We don't believe GEM is cheap enough for the challenges/uncertainty that remain. 

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20/04/2023 16:40

G8 Education (GEM) $1.265

GEM +4.98% Held their AGM today and while there was no real new news, that is a positive outcome for a business undergoing a turnaround amid challenging operating conditions. The childcare operator has done a very good job in recent times to improve occupancy which will continue to drive a recovery in earnings.

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22/02/2023 09:21

G8 Education (GEM) $1.245

The childcare operator reported a solid FY23 result yesterday (December year-end) with $901m in revenue up 4% YoY and inline with expectations, dropping to a small beat in underlying earnings (EBIT) which was flat YoY at $80.3m - the dividend of 2c for the half was light on, however, that is expected to grow in FY23 (~5c) and add ~1c each year from there.

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14/12/2022 09:52

G8 Education (GEM) $1.02

The childcare operator delivered a trading update yesterday that showed some swings and roundabouts as is expected in a turnaround story. The pros to the update were firmly around 2H momentum, with improving occupancy and strong enquiry levels evident, while they are running at $71m in earnings before interest & tax (EBIT) for the year (and should do at least $4m in Dec) meaning...

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07/09/2022 09:26

Active Income Portfolio

The portfolio was lower during the week off -0.50% with cash elevated at an elevated 12%. G8 Education (GEM) -2.97% and Centuria (CNI) -2.96% were the biggest drags while ANZPI +1.62% and Metcash (MTS) +1.23% ahead of their AGM today were relative performers.

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31/08/2022 09:29

Active Income Portfolio

The portfolio was higher during the week up 0.38% with cash at an elevated 12%. Pendal (PDL) was the top performer adding 7.55% following the confirmed tilt by Perpetual (PPT) while G8 Education (GEM) edged 4.12% higher following their results which showed improving occupancy levels in their centres. On the flip side, Service Stream (SSM) -14.20% was the biggest drag on a weak FY22 result which we cover below.

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24/08/2022 17:01

G8 Education (GEM) $1.00

GEM +2.06%: 1H22 results out this morning for the Childcare operator and they were as weak as we had expected, however, there are tangible signs of improvement that bodes well for the 2H. Operating revenue of $416.7m was around 5% above expectations while underlying earnings before interest & tax (EBIT) of $21m was also a slight beat to low expectations. They have...

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17/08/2022 09:14

G8 Education (GEM) 99c

Upon review of FY22, one aspect where MM thinks we can do better is cutting positions when we are wrong, or potentially wrong in a more ruthless fashion. On the 24th of February this year we added G8 Education (GEM) to the Income Portfolio with a 3% weighting at $1.29. We are now down 20% on the position questioning whether or not we should hold or fold. Multiple things feed into our thinking here, which is relevant for MM positions/portfolios right across the board.

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