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General Information

G8 Education Limited
GEM
http://www.g8education.com.au
Education Services
1,361
362

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$3.76 $3.77 $3.85 $3.72 $3.76 2802935 - ( No change )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Buy
22/05/2015
2

Company Overview

Business Description
G8 Education Limited (GEM) is a childcare center operator providing developmental and educational child care services mainly in Australia. GEM conducts a range of child care service activities, including: the acquisition of child care centres, the management of child care centres, industry-related project management, services and consultancy. GEM also operates child care centres, both owned and franchised, in Singapore.
Strategy Analysis
G8 currently holds a portfolio of premier childcare brands and chooses to navigate this quality tilt through its corporate architecture as the company continues to stress the tremendous importance of outstanding childcare. This strategic positioning of its product, disseminating quality and safety allows the G8 to command relatively high margins. In addition to this, a wide distribution spanning Australia and Singapore gives the company leverage to capitalise on demographical changes. Growth will stem from both potential acquisition opportunities and through more organic means. G8 Education reported NPAT up 11% to $19.21m for the year ended 31 December 2012. Revenues from ordinary activities were $179.99m, up 26% from last year. Diluted EPS was 8.94 cents compared to 9.27 cents last year. Net operating cash flow was $19.95m compared to $11.76m last year. The final dividend declared was 2 cents, taking the full year dividend to 6 cents compared with 4 cents last year.

Financial Summary

Year to Dec NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016 F 122.4 30.7 11.8% 12.3 28.6 7.6% 100.0%
2015 F 103.5 27.4 47.6% 13.7 24.2 6.4% 100.0%
2014 A 60.6 18.6 58.5% 24.4 19.0 4.2% 100.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Affinity Education Group (AFJ) $246M 0.0000 0.2136 0.2183 12.7088 10.4720 8.5956 0.00% 4.25% 6.02%
G8 Education (GEM) $1,364M 0.5810 0.4916 0.1494 20.3454 13.6397 11.8665 5.04% 6.52% 7.51%
Navitas (NVT) $1,810M 0.0996 0.1680 0.1125 22.0137 18.8480 16.9426 4.05% 5.30% 5.90%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.47 17.00 2.45 0.55
Market 1.01 17.00 1.33 1.59
Sector 1.37 18.50 2.59 1.07

Directors

Name Position Start Date
Mr Chirstopher John Scott Managing Director 25/03/2010
Ms Jennifer Joan Hutson Non-Executive Chairman 25/03/2010
Mr Brian Hilton Bailison Non-Executive Director 25/03/2010
Mr Matthew Reynolds Non-Executive Director 17/03/2015
Ms Susan Margaret Forrester Non-Executive Director 01/11/2011

Management

Name Position
Jason Roberts Chief Executive Officer
Christopher Sacre Chief Financial Officer,Company Secretary,Chief Operating Officer

Substantial Shareholders

Holding Name
28,291,421 (7.87%) Bennelong Funds Management Group Limited
19,576,569 (5.45%) National Australia Bank Limited and associated companies
19,206,406 (5.35%) UBS Group AG and its related bodies corporate

Calendar of Events

Date Event
15 February 2016 Report (Annual)
15 February 2016 Report (Prelim)
10 August 2015 Report (Interim)
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