This article is from the Australian Property Journal archive
CHILDCARE centres operator G8 Education has posted a marginal 1.6% increase to in underlying net profit after tax of $32 million, with the group’s profit margin impacted by regulatory changes in Western Australia.
Total revenue was up 16% to $361.2 million and underlying earnings before interest and tax was $57.4m, an increase of 8.5% over the same period last year. Although underlying basic earnings per share was down 2.3% to 8.53 cents. G8 paid a dividend of 24 cents per share.
Managing director Chris Scott said the group’s profit margins were impacted by increased wages due to a combination of regulated staff to children ratio changes as well as legislative related cost impacts in WA.
“Second quarter wage performance improved significantly, reducing the cost impact from 1.7% pts to 0.4% pts with further improvement expected in H2.
“Investment in staff training and centre refurbishments which are expected to yield both top line and cost line benefits in the future and have been substantially offset by savings in other areas,” he added.
“The momentum established across the group in Q2 is encouraging to note and lays a solid foundation as we enter the seasonally stronger second half period,” Scott said.
Australian Property Journal
