G8 updates on dividend and cash position in wake of latest Govt support package
G8 Education has confirmed that it will defer the payment of its final dividend as it seeks to manage and maintain liquidity in response to the uncertainty created by the COVID-19 outbreak and its implications for operating conditions going forward.
The final dividend will be 0.06 cents per share, which equates to around $28 million in size, and will now be paid on 30 October 2020.
The announcement comes after the Federal Government confirmed its third COVID-19 recovery package which will see up to $160 billion channelled to companies, including ECEC providers, in the form of fortnightly payments of $1,500 per employee in an attempt to support their viability and maintain employment levels.
With revenues of below $1 billion in 2019, G8 is likely to meet the eligibility criteria outlined in the Treasurers announcement confirming the package and will therefore be able to access the JobKeeper payment program and in turn support its substantial workforce of 9,000 team members.
The company also confirmed that it now has $135 million of cash and available facilities at its disposal, that debt covenants have been maintained and that lenders are continuing to be supportive.
CEO Gary Carroll said ““During these unprecedented times, the Federal Government has reinforced its commitment to assisting Australian families, ECEC providers and workers. We continue to work closely with the Government on further support measures for the sector and Australian families who rely on our services.”
To read the statement please click here.