General Discussion

Emali previously had plans to turn a 1.17ha former dog kennel and cattery on the South Eastern Freeway into a drive-through-style childcare centre, but scrapped those plans in 2022 due to the presence of snakes in the area.

Meanwhile Emali’s Salisbury centre was its first to have a swimming pool with a qualified instructor and sensory space.

In-house cooks across the Emali network prepare mostly organic meals for children using mostly local ingredients.

Eden Academy

The first Eden Academy opened in South Australia in June 2021 at Newton. Since then, eight more centres have opened across metropolitan Adelaide, while a tenth will open imminently at Glenelg.

Other locations include Christies Beach, North Haven, Morphett Vale and West Lakes.

Eden Academy was co-founded by Chris Sacre and Sean Collins, who believed they could create an early childhood service for children and families which “felt like an extension of their own home” based on their experience of working in the sector for more than ten years.

Goodstart, Stepping Stone, G8 top list of SA’s largest childcare operators National groups are leading the surge in new childcare centres, backed by super funds, local and overseas investors. See who owns SA’s largest and their expansion plans.

Large national groups are leading the surge in new childcare developments across South Australia, with the four largest providers now operating close to a quarter of all centres across the state.

Backed by superannuation funds, private equity groups and offshore investors, the country’s largest networks are looking to capitalise on the increased demand from families, and the shortage of facilities, particularly in regional areas.

According to a report from Deloitte Access Economics last year, of the 450-plus childcare centres across the state, close to a third are operated by large groups (those operating more than eight facilities), while 60 per cent are managed by small providers with just one or two services.

Figures from the Australian Children’s Education and Care Quality Authority reveal Brisbane-based not-for-profit Goodstart is the state’s dominant player, with double the number of centres as its nearest competitor and a market share of around 11 per cent of the local market.

It has 51 centres and is followed on the list of South Australia’s largest operators by Stepping Stone with 26 centres.

Led by Adelaide-based directors George Skrembos and Danny Scinto, Stepping Stone is the largest locally-owned childcare operator in South Australia, and one of just three locally-owned groups in the state’s top ten, alongside Emali and Precious Cargo.

The rest of the top ten is dominated by national groups including G8 Education, Edge Early Learning and Nido Education.

Australian Childcare Alliance (SA) president Jackie Jackman said both local operators and interstate groups were looking to expand services across the state, but shortages remained in regional areas.

“As per all areas in Australia, remote and regional areas of SA are affected regarding supply with families struggling to secure care in centres,” she said.

“The recommendations in the ACCC’s childcare inquiry report in December included that a market stewardship role should be considered for government, by both Australian and state and territory governments, to monitor, regulate and shape childcare markets to ensure they deliver government objectives.

“A key part of this role should be identifying under-served or unserved markets and cohorts of childcare users. The stewardship role should also encompass consideration of appropriate interventions, whether through demand-side subsidies, supply-side subsidies, or a mix, as well as any complementary regulatory measures that may be necessary.”

According to the Deloitte Access Economics report, close to 80 per cent of long day care centres in South Australia are found in the Adelaide metropolitan area, while there are less than 100 centres located in the state’s regional areas.

Ms Jackman, who runs Treetops Early Learning Centres, said a shortage of early learning educators was also an ongoing issue for the industry, as the demand for services continued to rise.

“The undersupply of early childhood education and care educators is affecting all centres and operators, both the large operators and smaller centres,” she said.

“The increase in the number of childcare centres causes a need for more educators for the same number of children in care, due to the minimum staff-to-child ratios.”

SA’S TOP TEN LARGEST CHILDCARE OPERATORS

Goodstart Early Learning

Goodstart is the state’s largest early learning provider, with double the number of centres as its nearest competitor and a market share of around 11 per cent of the local market.

Brisbane-based Goodstart was established in 2010 when a syndicate of charities – The Benevolent Society, Mission Australia, the Brotherhood of St Laurence and Social Ventures Australia – joined forces to buy out ABC Learning Centres which had fallen into liquidation.

Operating as a not-for-profit, Goodstart has 51 South Australian centres across metropolitan Adelaide, as well as in regional centres including Mount Gambier, Whyalla, the Barossa Valley and McLaren Vale.

Goodstart centres provide early learning childcare services, as well as kindergarten, pre-school and vacation care.

Operating more than 660 centres nationally, it is also Australia’s largest early learning provider, educating more than 61,000 children and turning over $1.3bn annually.

The organisation posted an $85.3m loss last financial year as it recovers from the impact of the pandemic while battling higher rent and energy costs.

Stepping Stone

Stepping Stone company directors George Skrembos and Danny Scinto started building childcare centres for interstate clients in 2003 through their building company Eastern Building Group.

They have since built up their own portfolio of 26 childcare centres across South Australia, making them the state’s largest locally-owned operator, and the second largest operator overall behind Goodstart.

Their 26 centres are found across suburban Adelaide, in Tanunda, as well as at the Royal Adelaide Hospital.

Stepping Stone offers baby, toddler and kindy programs, and provides lunch and snacks prepared in the kitchen within each centre.

Last year Stepping Stone’s Evanston centre was among the highest ranked – scoring 9.3/10 – by childcare app KindiCare, based on the results of official inspections and parent reviews.

G8 Education

G8 Education is Australia’s largest ASX-listed early learning provider, and second largest operator overall, with more than 430 centres.

In South Australia it’s the third largest operator, with 22 centres operating under several brands including Community Kids, Casa Bambini and Kindy Patch.

Its centres are located across metropolitan Adelaide as well as in regional centres including Mount Gambier, Murray Bridge and Kadina.

The Gold Coast-headquartered company generates close to $1bn in annual revenue, and last year generated a $56m profit for its shareholders.

Its largest shareholders are investor groups Allan Gray Australia and Tanarra Capital, as well as superannuation funds Hostplus and Australian Retirement Trust.

G8 cares for around 50,000 children every week and employs more than 10,000 staff.

It recently offloaded 31 underperforming centres across the country to Genius Education.

In 2021 the company acquired in-home childcare and disability service provider Leor, as part of its strategy to diversify its offerings to cater for changing workforce and childcare patterns.

Edge Early Learning

Having established itself in South East Queensland in 2017, Edge Early Learning marked its entry into the South Australian market in 2017 when it acquired 17 centres across the state.

It quickly went about rebranding and updating each of the centres, including sites across suburban Adelaide, as well as in Port Pirie, Port Augusta, Aldinga and Mount Barker.

Brisbane-based Edge Early Learning will soon open a purpose-built centre at Angle Vale, while there are also plans to open a new facility within a $450m housing project at West Lakes.

The privately-owned operator is backed by private equity fund HEAL Partners, which holds a number of investments in education and healthcare ventures.

Edge Early Learning has more than 50 centres across South Australia, Queensland and the ACT, and has ambitious growth plans.

It says its “inquiry-based philosophy and play-based learning curriculum” is embedded across its network, while in-house chefs produce new, seasonal menus every week.

Nido Education

Nido Education was founded by veteran childcare entrepreneur Mathew Edwards following the privatisation of Think Childcare in 2021.

The Sydney-based company, which listed on the ASX last October, runs the Nido Early School childcare centres – the fifth largest network in South Australia with 13 centres across metropolitan Adelaide.

Most of Nido’s early schools have an Atelier, a dedicated arts workshop, as well as yoga classes for the kids.

Nido, Italian for ‘nest’, offer cooking, dance, language, music, sports and even yoga to their students.

The centre take inspiration from the Reggio Emilia philosophy – an approach by a teacher in Italy to rebuild the community after World War II – which has a key focus on collaborative and project-based learning.

Mr Edwards, the founder and former chief executive of Think Childcare, is aiming to scale up Nido following last year’s $99m capital raise which supported the acquisition of 24 childcare centres nationally, taking the company’s portfolio of owned and operated centres to more than 50 across the country. It is targeting the development of 20 to 30 new centres per year.

Guardian Childcare & Education

Guardian Childcare & Education currently operates 13 centres across metropolitan Adelaide and in the Adelaide Hills, and about 160 centres nationally, catering for 15,000 children.

It is one of the fastest growing operators in South Australia, with four more openings planned this month – at Banksia Park, Evanston Gardens, Mount Barker and Pasadena – and another centre due to open in July in Fairview Park.

The company’s roots date back to 2004, and it has since grown rapidly through acquisitions across South Australia, Victoria, NSW and Queensland and the ACT.

Guardian is backed by Swiss-based Partners Group, however there is speculation that another private equity firm, Hong Kong-based Affinity Equity Partners, is closing in on an acquisition of the business.

Guardian is the third-largest provider of childcare in Australia, behind Goodstart and G8 Education.

Green Leaves

Privately-owned national group Green Leaves Early Learning operates 12 purpose-built childcare centres across metropolitan Adelaide.

Based in Queensland, the company has 61 childcare centres across the country, employing close to 1500 team members.

It is backed by a number of superannuation funds and investors groups including Sydney-based private equity firm Crescent Capital Partners which acquired a 50 per cent stake in the business in 2022.

In the same year, Green Leaves opened the first childcare centre at the Bowden housing development – a three-level centre offering a dedicated chef, culinary lesson space, outdoor and water play zones, bike tracks and a coffee lounge for parents and carers.

Other Green Leaves centres in Adelaide include sites at Glynde, West Lakes, Pasadena, as well as three locations in the Seaford area.

Emali

Emali operates nine early learning centres across Adelaide, making it the second largest locally owned operator behind Stepping Stone.

The company was established by Adelaide-based entrepreneur Ali Serhan in 2007, and it now operates centres in Underdale, Salisbury, Prospect, Morphett Vale, Littlehampton, Hectorville, Findon, Broadview and Brighton.

The Queensland-based operator now has more than 30 centres across Queensland, NSW, Victoria and South Australia.

Their centres offer little luxuries such as homely settings, bike tracks, climbing equipment, pet chickens and even complimentary morning tea for parents when dropping off their child.

Precious Cargo

Precious Cargo was established in 2006 by Adelaide-based businesswoman Cheryl Shigrov, who has since grown the network to seven locations across metropolitan Adelaide.

Precious Cargo centres use the Montessori teaching method, which was founded in Italy more than 100 years ago by Dr Maria Montessori.

For children in their early years of education, the method involves fostering children’s natural interests and activities rather than formal teaching methods.

Precious Cargo offers cooked meals prepared by in-house chefs, music rooms, vegetable gardens and pets.

Its centres are found in Blackwood, Collinswood, Lockleys, Marion, St Peters, Westbourne Park and Woodville Park.

Originally published as Goodstart, Stepping Stone, G8 top list of SA’s largest childcare operators

source: Goodstart, Stepping Stone, G8 top list of SA’s largest childcare operators | The Weekly Times