G8 PROFIT JUMPS

THE fortunes of childcare centre operator G8 Education Ltd (GEM) continue to rise with the company posting an 11 per cent lift in annual profit to $19.2 million.

The result has beaten consensus forecasts of a $19 million profit by analysts earlier this year as the Gold Coast-based G8 which continues to grow through key acquisitions nationally.

The profit has been built on a 26 per cent surge in revenue to $179.9 million.

G8 Education, whose financial year aligns with the calendar year, had 175 childcare centres under its control at the end of 2012, accounting for 13,421 childcare spaces.

The company paid a dividend of 2c a share for the December quarter, but has since announced quarterly dividends will increase to 2.5c a share.

Managing director Chris Scott describes it as an “excellent result” for the company that has been driven by the acquisition of better quality centres in Melbourne and Sydney in particular.

“We are getting better quality earnings because the rates are better down south,” says Scott.

He also attributes G8’s success to staff being disciplined in their application of the company’s systems.

G8 Educations posted pre-tax earnings of $26.8 million, up 18 per cent from 2011.

Group expenses rose 28 per cent to $150.5 million, while underlying earnings per share rose 23 per cent to 9.2c.

Shareholders applauded the result, driving G8 Education’s shares to a high of $1.85.