There were no surprises in the trading update released this...

There were no surprises in the trading update released this morning.

Improving occupancy is now becoming a major hurdle for G8, but a large number of other providers are experiencing the same challenges. The main reason is oversupply of centres and the developments keep coming. Centres are becoming larger, prior to the introduction of the NQS, licensed places were restricted, but now it's common to have a 150 place centre, that's 750 places a week, average enrolment of two days equates to 350 families, that puts a large dent in the occupancy levels of competitors. How do you safe guard yourself against new developments? The easiest way is to deliver quality care and focus on continual improvement. Improving care comes from professional development of staff, something in my opinion G8 do badly. They have in the past delivered professional development through webinars and to the masses. It has cost milllions and has done little to improve quality or occupancy. Time for a major rethink with PD, make it meaningful, practical and relevant to individual centres, staff, children and the families who attend those centres.

The changes to the back filling of staff was always going to be temporary. The normal low occupancy levels at the beginning of 2018 will alleviate that problem for a while, by utilising current staff and reducing the number of casuals being hired currently.

There have been several mentions of the changes being introduced on 2 July 2018. Please read and understand the changes and the impact they will have on some families and occupancy. The lowest number of hours allocated to families currently stands at 48 per fortnight, two days per week in a centre operating for 12 hours per day. From July next year that entitlement becomes 36 hours of subsidised care per fortnight. If that family wish to attend for two days, they will be paying full fees for 12 hours of that care per fortnight, a lot more than they are now. It has to be considered, that, if that family wish to access their full quota of 36 hours, and the centres are not flexible on allowing access to the full entitlement of subsidised hours, are they going to be seen as not delivering a family flexible service. The delivery of flexible hours IMO will make or break some centres in 2018. Simon Birmingham's obsession with flexible hours and the introduction of more transparent billing for parents, sets a red flag of things to come.

Still no experience in early childhood education and care with the new additions to management. IMO marketing is not what's needed it's communication. You cannot market children's development you must communicate with your community, and become a voice, an advocate for children. Find the balance between deliverying quality care for children and dollars for shareholders. It can be done!

GC omitted to provide information on enrolments for 2018. They will already be completed. Another indicator for concern IMO.

There will be many who have lost a great deal of money today, no one likes to see that happen to anyone. I hope that, the circus that rolled into this forum a few weeks ago did not influence anyone to buy. Sock puppets and multiple personas. They should be ashamed of themselves! Rest assured posters on other forums have got their measure. It's surprising how many infrequent and one off posters pop up on the threads they are frequenting.

Finally, I do believe that GC is now getting an insight into early childhood education and care and I am led to believe that he is listening. It may get worse, but I do believe he wants to make it better.



IMO & DYOR