This article is from the Australian Property Journal archive
G8 Education Limited (ASX: GEM) suffered a full year statutory loss of $187 million, with the group focussing on recovery in 2021.
In the 12 months to 31 December, total revenue was down 14.4% to $788.1 million, from $920.6 in the previous corresponding period.
Underlying EBIT was down 11.9% to $105.2 million, from 119.4 million in the pcp. Underlying NPAT was down 11.3% to $60.0 million, from $67.7 million in the pcp. While underlying EPS was down 38.1% to 8.1 from 13.0 cents.
The group’s dividend temporarily suspended, with the intention of a policy review in August of this year.
“This year the group’s absolute priority has been to ensure the health, safety and wellbeing of our team members, children and families as we navigate the ongoing impact of COVID‐19. In addition, we have been firmly focused on safeguarding the business through prudent financial management and cash preservation and by drawing on the Commonwealth Government’s welcome support for the sector during the pandemic,” said Gary Carroll, CEO and managing director of G8.
“These efforts have been reflected in the group’s 2020 full‐year results, which show a strong recovery in occupancy and attendance in a challenging COVID‐19 related environment.
Like-for-like occupancy was at 69.2%, with the occupancy gap shrinking to 1.5% below the previous year in December.
Reflecting a $301 million equity raise in April of 2020, G8 has a strong balance sheet with net cash of $21.8 million.
“Throughout this period, the group has not lost sight of its strategic priorities, with the optimisation of its portfolio continuing through the divestment of underperforming centres, the ongoing improvement program and the opening of greenfield sites. Our strong balance sheet, with net cash of $21.8 million, gives us the capacity to continue this momentum and to explore other sensible growth opportunities,” added Carroll.
Refinancing in February of 2021 is forecasted to reduce borrowing costs by $6 million to approximately $14 million in 2021.
“The strategic direction over the medium‐term is focused on further lifting quality and continuing to build a great team, to support delivering a world class differentiated education and care offering to G8’s families.”
The group’s employee remediation program, as announced in December 2020, will cost a total of $50- $80 million.
“The commitment and resilience demonstrated by our team members, particularly during this last challenging year, is absolutely critical to our success. They have and continue to provide the best learning foundations for our children and support for our families,” concluded Carroll.
