Ann: Half Yearly Report and Accounts, page-8

No mention of occupancy rates.

The average fee increase applied across child care centres in January 2015 was 3.65%. This indicates that organic growth was around 1.95%.

Wages growth is reported at 1.9%, this would have been achieved by stricter implementation of staff to child ratios or employment of trainees to reduce wage costs. Taking into account the modern award 3% and organic growth of 1.9% it seems that control of wages expenditure has been a focus.

The increase in operating costs is also more inline with the organic growth rate. The main expense would be consumables and insurances.

I do have a concern about the value of goodwill. If Affinity adopt the same reporting value on goodwill as G8, their balance sheet would look a lot healthier.

In saying that and in my opinion, Affinity are handling this badly, very little communication with shareholders, staff or parents. They acquired some great centres, but failed to maintain control of those centres. Lost opportunity.