G8 gets taught a lesson
Stock
G8 Education (ASX:GEM) $2.05 as at 27/08/2018Event
Childcare provider G8 (ASX:GEM) announced first half results this morning that were below market expectations. The company has had a rough couple of months as it deals with a ‘very fluid market’ in terms of childcare demand, increasing supply and of course, changing Government regulation which is putting upward pressure on costs. G8 saw significant decline in occupancy over the half, down to an average of 70.1% over 1H18 vs 79% in 2H17 or 72.6% in 1H17. The trend resumed its move lower for the company, more than reversing the positive headway it had made last year. Along with falling occupancy, wage costs alone grew $7.2m over the half and another $1.2m was spent on training.
