Mayfield Childcare hopes investors will return to listed sector
Write up in The Australian this morning about Mayfield's float on Wednesday.
"Mayfield Childcare expects to achieve what it believes will be considerable advantages and benefits by amalgamating Childcare centres under a central organisation and management structure."
Mayfield also intends to invest in systems to automate functions such as rostering and forecasting.
ABC Learning set out with a similar charter, with the central procurement of anything from crayons to nappies working a treat.......for a while.
Some Mayfield directors with many years experience in early learning but central procurement IMO has to be carefully balanced to ensure the individualism of centres within their community and their contribution to that community is maintained.
Another fact that caught my attention was the amount paid for centres, most noticeable is the amount paid for Little Learners, owned by two of the directors. If reports are correct $5.3m for a 70 place centre. Makes G8's payment for Sterling look like peanuts.
Central procurement IMO is one of the contributing factors to G8's occupancy concerns. I'll post more on it later in the week.
Should be a busy week for news. Let's hope there's some coming out of Canberra.
GEM Price at posting:
$3.20 Sentiment: None Disclosure: Not Held
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