Their quest to become the "leading provider" of early childhood education should be rephrased as the largest provider, as their quest to rapidly acquire more services than Goodstart is apparently high on the agenda.
The recent acquisitions in February equates to a cost paid of $35,892 per licensed place. Top dollar by anyone's standards!
Their current licensed places would also be attracting Enrolment Advances from the government of $4.79m. They would also be receiving subsidies for all of the trainees employed in their centres. Additionally they would be attracting a massive amount of funding from the LDCPDP for professional development. One of my earlier posts estimated this funding for a medium 60 place centre to be around $45,000 over a three year period.
It would be beneficial for shareholders to see of breakup of income from the corporates. Fees from parents, childcare benefit, childcare rebate, enrolment advances, trainee subsidies, inclusion support funding, JET funding and LDCPDP funding.
Refreshing to see Think mentioning that they intend to use $200,000 of their enrolment advances for playground improvement. A bit more communicative transparency would be welcomed from all corporates.
If the SP heads south on Monday will we see the directors show 'confidence' and acquire more shares?
IMO & DYOR
Islay
GEM Price at posting:
$3.93 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)