Australian childcare provider, G8 Education, has announced underlying profit of A$60 million (£33.6 million) for 2020, down 11.3% from A$67.7 million reported for 2019.

Total revenue for the year was A$788.1 million, down 14.4% from A$920.6 million reported for 2019.

The company’s share price has dropped by almost 30% over the past year. However, G8 Education shares have gained around 20% over the past six months.

G8 managing director Gary Carroll said: “This year the group’s absolute priority has been to ensure the health, safety and wellbeing of our team members, children and families as we navigate the ongoing impact of Covid‐19. In addition, we have been firmly focused on safeguarding the business through prudent financial management and cash preservation and by drawing on the commonwealth government’s welcome support for the sector during the pandemic.

“These efforts have been reflected in the group’s 2020 full‐year results, which show a strong recovery in occupancy and attendance in a challenging Covid‐19-related environment. Throughout this period, the group has not lost sight of its strategic priorities, with the optimisation of its portfolio continuing through the divestment of underperforming centres, the ongoing improvement programme, and the opening of greenfield sites. Our strong balance sheet, with net cash of $21.8 million, gives us the capacity to continue this momentum and to explore other sensible growth opportunities.” 

Date published: 2 March 2021

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