@daniel12345 occupancy levels are crucial to the delivery of healthy profits. At the beginning of every year some centres do struggle with low occupancy levels. Some recover quickly during March/April, but some, for various reasons, always seem to be below the (happy bar) of 85%.
The 1h 2016, IMO, will see some centres struggle not only with occupancy, but, with reduced licensed places and additional employee expenses. 1 January 2016 sees the implementation of the 2-3 year old child to educator ratio changes, from 1:8 to 1:5.
My estimates, surprisingly, do not equate to those, stated fleetingly, by a director of a large corporate childcare organisation. I estimate a 56 place centre, currently licensed for 16 2-3 year olds will, through reduced income and additional employee remuneration see profits fall by around 5.82%.
GEM Price at posting:
$3.27 Sentiment: Buy Disclosure: Not Held
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