Yes, but it's the unsustainable level of growing support that is concerning the government.
Regulatory changes to ratio's in January 2016, will see all centres report reduced profits. If centres attempt to pass the additional salary costs onto parents through increased fees, parents will seek alternative care ( family day care or nannies if approved) and occupancy levels will drop.
Inform yourself about the upcoming regulatory changes and calculate the reduced profits x 400 + centres and it is staggering. It's not only GEM this applies to all corporates and privately owned centres.
I agree with Scorchin, my opinion is that well over 4 x EBIT is being paid for centres, by both of the large corporates.
Deliver profits by high occupancy and customer satisfaction not by aggressive accumulation.
Add to My Watchlist
What is My Watchlist?
