G8 provides update in wake of “Return to CCS” roadmap news

G8 Education Ltd, has released a statement updating its position in the wake of yesterday’s announcement by Federal Education Minister, Dan Tehan, which outlined a roadmap for the early childhood education and care sector (ECEC) to move back to the Child Care Subsidy (CCS). 

The move, which has had a mixed reception across the ECEC sector, will see the “free care” model, implemented in response to the COVID-19 outbreak, cease and the recommencement of the CCS model with a range of additional measures designed to support the sector and families through the transition period. 

Commenting on the plan G8 CEO Gary Carroll said “The transitional arrangements announced are welcome as they provide operators with increased flexibility to support families as the economy recovers.” 

With respect to the financial impact on G8 the statement noted the following key points:

• The revised support packages are structured such that G8 expects to be in no worse position than the prior package even at lower occupancy rates
• Total costs savings secured as part of their COVID-19 response plan have been in line with those outlined in the Investor Presentation released on 9 April 2020

In addition, the company confirmed that enrolments (booked occupancy) currently stands at 65 per cent, although physical attendances are lower, sitting around 52 per cent. Physical attendance growth in May was strong, with the Group seeing a 20 per cent increase over the month. 

Further detail on current trading will be provided at the Group’s Annual General Meeting which is due to be held on 17 June 2020. 

To read the statement please click here.