G8 Education is on its way to becoming Australia’s largest childcare services provider.
The company’s net profit more than doubled for the year ending December 31, while underlying net profit after tax was up 207 per cent to $13.91 million from $4.52 million the previous year.
Managing director Chris Scott (pictured left with Jae Fraser and Chris Sacre) had his remuneration cut by $555,880 to $334,435 in 2011, largely because of a $520,000 share-based payment he received in 2009.
“The result for the 2011 full year is excellent,” says Scott.
Revenue also grew 115 per cent to $142.90 million from $66.55. Earnings before interest and tax were up 262 per cent from $6.87 million to $24.88 million, while G8 Education is on its way to becoming Australia’s largest childcare services provider net profit before tax was up 309 per cent from $5.55 million to $22.69 million.
The company has 142 childcare centres, seven of those in Singapore, while it has another 64 managed or franchised centres in Singapore. The company is still awaiting judgement on legal proceedings with Cherie Hearts Group, Sam Yap and Gurchran Singh in relation to contractual arrangements between the parties. The case is expected to wrap up by mid-year.
Once the wrangle is finalised, G8 will focus on acquisitions. It already has been active in this area.
Its balance sheet shows expenses increased by 98 per cent from $59.68 million to $118.02 million as it acquired 53 centres and sold seven underperforming centres.
“G8 Education continues to perform strongly and is well positioned for further growth through acquisitions,” says Scott.
Centres run by G8 Education can care for a total of 10,486 children per day and has 3118 employees, 2870 of them in Australia.
“It shows that, operationally, G8 Education is delivering for all stakeholders. Our team has integrated, and continues to integrate, a significant number of child care service businesses in a way that exceeds expectations,” says Scott.
Wellington capital boss Jenny Hutson is G8’s chairman. The company increased its dividend from 4c to 6c.
TOP PUBLICLY LISTED COMPANY
G8 Education (GEM)
MD: Chris Scott
Market Cap: $170m
Revenue ’11: $142.9m
Staff: 3118 (across the group)