There is a huge opportunity for improved profit margins at Affinity. Occupancy levels in some centres are below expectations and some centres are operating well above staff to child ratio.
The rapid accumulation by both large corporates has lacked discipline. The ideal sized centres are; 39, 59 or 80 plus licensed places. There has been non profitable buys by both corporates, admittedly, some of those centres were part of a larger group acquisitions. Hopefully, both corporates will decide to offload some of those centres that are better suited to owner/educators.
Am awaiting the announcement of the childcare expert that Anchorage are going to appoint to their board.
By the way, it has been reported that the key players at Anchorage received $17 million in performance fees in connection with the Dick Smith sale.
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