G8 education roars back into profit with $270 million turnaround
Education group G8 has rebounded with a first half profit turnaround of almost $270 million,
The company reported a first half bottom line of $25 million against a $244 million loss for the same period last year, an 82 per cent increase.
It reported a recovery in its core occupancy and re-emergence of its seasonal improvements. Revenue increased from $308 million to $421 million which it said reflected a recovery in occupancy and the impacts of greenfield growth.
Chief executive Gary Carroll said while occupancy trends in the first half were encouraging, recent lockdowns, particularly in the eastern states, had begun to impact the seasonal trend in the second half.
Regional occupancy, where the impact from lockdowns was not as severe, was 4.4 per cent higher.
“After an encouraging first half, since June we have started to see some impact of COVID-19 lockdowns on occupancy in eastern states,” Carroll said.
“We have the right settings and systems in place and are well capitalised to weather this period and emerge in a strong position.”
He said G8’s focus was on internal growth but it was ready to take advanatage of “sensible” opportunities.
