Profitability going forward, page-17

The director will be buying in June when the final payment is made for the purchase as I understand. The Clarke's are very good operators of childcare centre's so there is comfort there. The issue I see is buying centres on an EBITDA multiple of 4.5x - I applaud them for being careful but at the moment it's not really the roll up I was expecting in terms of acquisition momentum. In terms of the new government subsidy the Child Care Subsidy will be paid directly to providers to be passed on to families as a fee reduction. Families will make a co-contribution to their child care fees and pay to the provider the difference between the fee charged and the subsidy amount. Oversupply has come into the market with the expectation of parents being able to afford more hours of childcare with the increased subsidy. In quality centre's where parents are very satisfied with the service they may choose to increase the hours of care. Prices increases may prove to be easier to slip through as well given the Child Care Subsidy is paid direct to the provider with families making a co-contribution. i.e. what you don't see coming directly out of your pocket, doesn't hurt as much. I don't think any of the operators really know how it's going to play out and I presume that's why there is pressure on the share price as a large holder/holders have made up their minds already.