Ann: Record Full Year Audited Result, page-26

The lack of growth in occupancy levels is concerning. Comparing the increase in occupancy against the increased revenue would indicate that revenue has come from increased fees.
Pre 2011 acquisitions:
2012 occupancy level growth 0.44%. Revenue growth 10.19%
2013 occupancy level growth 1.73%. Revenue growth 10.78%
2014 occupancy level growth 0.37%. Revenue growth 6.35%

Acquisitions 2011:
2013 occupancy level growth 0.67%. Revenue growth. 9.51%
2014 occupancy level growth 1.59%. Revenue growth 6.84%

Acquisitions 2012:
2014 occupancy levels growth 0.18%. Revenue growth 6.83%

These figures only reflect acquisitions that have traded for a full twelve months prior to December 2014.

Chris Scott received a salary increase of 50% taking his salary to $667,460 and Jenny Hutson received a salary increase of 57% taking her salary to $151,903. That's two very hefty increases.

As some posters here have said too many acquisitions this year. To effectively integrate 203 centres in a year is extremely ambitious and must have placed huge demands on operational and support staff. IMO it is now time to bed it all down and concentrate on improving the occupancy in those older centres and maintaining the occupancy in those high performing centres that they are about to acquire.

Chris Scott has stated "the group is well placed to deal with pending changes to the childcare sector proposed by the Productivity Commission". Will be interested to receive that information. It's not only the Productivity Commission it is the already legislated ratio changes that will occur on 1st January 2016.

Centres cannot keep increasing their fees, it is unsustainable for parents. The ratio changes will bring large additional costs or lost revenue to centres. Scott Morrison stated over the weekend that "the government intend to maximise work incentives while ensuring that the benefits were not captured by childcare providers jacking up the fees".

Bed it all down, it's not important to be the biggest - its important to be the best.

All IMO and DYOR

Lets see what tomorrow brings.