Childcare giant G8 reports big loss but tips a year of recovery
Early childhood education group G8 has posted a $187 million loss for the December full year as it struggles through a massive restructure and foots an $80 million unpaid wages bill.
Education group G8 has offloaded 31 centres (photo supplied)
G8 shares fell 5 per cent after the announcement to $1.11.
The bottom line was heavily impacted by a $237 million impairment, reported last year. Revenue was down 14 per cent to $788 million.
G8 said there had been a strong recovery and it claimed it finished the year with stronger than expected occupancy after a year in which numbers fluctuated because of pandemic restrictions.
It plans to open 10 new centres this year and said 2021 would be a recovery year because of the end of government subsidies and the continued impact of COVID-19, which meant it had to wave about $800,000 in fees during the year.
It said its improvement program would gain momentum this year and that there were positive results.
Managing director Gary Carroll said the year’s results showed a strong recovery was underway.
The underlying earnings before interest and tax for the year were $105 million, which included $12 million in wage repayments. It expects the repayment to be completed by July.
It said its wages performance was tracking to expectations.
No dividend was paid.
