G8 acquisitions for 2015 has been reported as 2. Acquisitions in 2014 reported as 203. Contracts issued on 8 centres in August 2014, were delayed with expected settlement September 2015. There has been no reported settlement of these centres. A further 12 were contracted in February 2015 with settlement only occurring on 2. By my calculations there are 18 centres awaiting settlement. G8 report 17 outstanding.
Personally, I would be evaluating all centres closely, taking into account the ratio changes being introduced in January 2016. If the average centre dropped one licensed place, it will reduce income by $23,400 and increase expenditure by $47,382, totalling $70782. Some centres were hoping that they could actually increase their licensed numbers but without the required regulated floor and outdoor space that is not an option.
How will the takeover of Affinity by Anchorage Child Care affect G8. I agree that their focus will be on occupancy and reducing staff costs. I expect G8 will follow exactly the same plan. Accumulation of centres is worthless if these centres are operating with low occupancy. I have checked the vacancies of a group of twenty G8 centres, with only two reporting no vacancies, some have vacancies every day. That is slightly concerning at this time of year, which I am certain will be getting monitored by G8. They would all have a good idea of their occupancy levels for the beginning of 2016 and I would expect necessary changes are being discussed.
I am one of these often mentioned non holders, if you feel that being a non holder reduces my expertise in early childhood please feel free to discard my posts.
IMO & DYOR
GEM Price at posting:
$3.29 Sentiment: None Disclosure: Not Held
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