G8 downgraded to a SELL yesterday by Moelis analyst Garry Sherriff, page-2

Garry Sherriff's comment " we are unsure how much more operational improvements can be squeezed out of the existing portfolio."

IMO there are still plenty operational improvements that could be implemented by G8.

1. Split one full time position in each centre into two part time positions. Gives flexibility to reduce staff hours to staff to child ratio easily.
2. Utilise area managers as floor staff when needed, especially in under performing centres.. It allows the area managers to get a good insight into the centre and improves parent relations with management. Centres who are performing to expectations and are meeting targets, do not require weekly visits from an area manager.
3. The return to one of their original criteria for purchase. Centres must have 39+ licensed places.. There are no profits to be made in centres any smaller than 39 placements.
4. Give serious consideration to selling some of the smaller under performing centres. There is one group within G8 that would be much better placed with owner operators.
5. Focus should now be on enrolments for 2016. Set marketing expectations with centre staff with consistent reviews on enrolments.
6. Reconfigure centres, that do not have a 0-2 room, if possible, to include a babies room. It will secure enrolments and feed occupancy within centres for the next five years.

IMO Affinity have so much potential but they will be unable to utilise that potential with their current management. If G8 are unsuccessful and Anchorage do take over Affinity, I hope they have a damn good plan.

All of the above is my own opinion. DYOR.