LFL occupancy currently down 2.5%-3.0%! The report states that...

LFL occupancy currently down 2.5%-3.0%! The report states that G8 expect the improvement in portfolio quality to increase occupancy by 1.5% and centre manager stability a further increase of 2.0%, basically no improvement in LFL occupancy if those two targets are achieved.

The report also states that G8 want to source, develop, engage and retain great talent.Currently G8 have 263 staff vacancies. Of those vacancies 132 are for early childhood teachers. Early childhood teachers are crucial to the delivery of quality educational programs, which, the proposed establishment of a Care, Development & Education team should oversee. Hopefully, they will hire highly qualified and experienced educators for that team, who have centre experience and not academics who spend no time in centres. They are also advertising for 16 centre managers, that they will need to engage and transition into centres quickly.

"New Child Care Funding package is a benefit to 95% of existing G8 families". A cleverly worded statement omitting the words "of increased benefit". Nowhere in the report, does it state that any percentage of families are increasing their attendance because of improved funding from the package to be implemented from 2 July. Discussions with several directors over the past few weeks has revealed that no families currently enrolled, at those directors centres, have at this stage, indicated that they will be increasing their days of attendance because of the New Child Care Funding package.

This release and market reaction reminds me of the announcement of the share buy up of the Hong Kong based CFCG (who have been selling down their shares).

The forecasts in the report and the time frames for achievement are ambitious. All pie in the sky until it actually happens.

Hopefully some investors recouped their losses today.