CCS: The blame game has started. Centres blame the DHS for delays and the DHS are blaming centres. Parents caught in the middle, paying full fees, with some left with no option but to remove their children from care until their enrolments are processed.
Hourly Cap & Activity Test: Currently hourly cap IMO is fair, but with increases linked to CPI, currently at 1.9% and the average annual fee increase, in centres at 5% parents out of pocket costs will increase rapidly over the next few years. The Activity Test is unfair and requires minimum attendance of 18 hours to be increased to 24. The sector are actively in conversation with Canberra regarding the 24 hours and the earnings brackets for families.
Occupancy: IMO occupancy in G8 is stronger than it was this time last year.
Quality: Assessment and Ratings are improving.
Potential: It saddens me to see a company with the potential of G8 unable to effectively find the balance between promoting product and promoting profit. They still market rather than communicate and sell rather than advocate. The websites of the other ASX listed providers are effectively communicating with parents and shareholders. Hopefully an updated website, that is both family and shareholder friendly and promotes early childhood education and care is on GC's to do list.
The senior management team is lacking depth with no members of the team having any qualifications or experience in early education and care. This is the latest appointment by Goodstart www.goodstart.org.au/news-and-advice/July-2018/Goodstart-appoints-leading-UK-early-years-expert
A similar appointment is urgently needed by G8.
AFR: Must have been a slow news day.
IMO & DYOR
GEM Price at posting:
$2.38 Sentiment: None Disclosure: Not Held
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(20min delay)