IMO G8 are concerned about the occupancy levels of their centres. Earlier this year they embarked on "offering giveaways" to boost enrolments, which was the first indication of low occupancy. They have been reluctant to release average occupancy levels for more than twelve months, instead opting to release a Like for Like Peak Occupancy, which could be any one day of a calendar year.
On checking the vacancies of one of their groups, all centres, apart from two have vacancies everyday of the week. We are now mid way through the year, children and families are settled into their centres, so wouldn't expect to see much improvement in occupancy levels. The recent training provided to staff would have been funded from the governments Long Day Care Professional Development Programme (LDCPDP) and although it was a step forward, I am told it was more marketing focused than improving delivery of care, another indicator of concern about occupancy. The final payment of this funding will be paid to centres before the end of June.
IMO improving quality will, at this time, do very little to improve growth.
IMO & DYOR
GEM Price at posting:
$4.12 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)