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Writedowns hit G8 bottom line as it plans Singapore sell-off

Business

Education group G8 has suffered a $239 million loss for the June 30 year, most of which related to writedowns.

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The company’s dividends have been suspended but it confirmed it would pay a deferred 2019 dividend of 6 cents a share.

Although confident about the future, G8 said the removal of JobKeeper and stimulus measures would impact unemployment and the level of restrictions would also impact forward bookings.

Underlying earnings for the year were $29 million, a fall of 44 per cent. Revenue was down 28 per cent.

G8 said it the $301 million it raised earlier this year strengthened its balance sheet and debt was now $57 million. It also claimed to have preserved cash and met cost-saving targets.

Managing director Gary Carroll said the strong start to the year had been affected by COVID-19.

“Our revenue during the first half was impacted by the initial Government support package which capped revenue for providers, irrespective of occupancy figures,” Carroll said.

“Following the immediate hit to occupancy at the start of the pandemic, we saw occupancy levels increase during the period of Government-supported free childcare.

“With the exception of Victoria, occupancy has continued to grow steadily, even after the re-introduction of the childcare subsidy in mid-July.”

G8 will sell its Singapore business which it said would enable it to concentrate on the Australian operations.

 

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