Key points
- Reported a Net Loss After Tax of $38.8 million for the half-year ended 30 June 2026
- Total revenue decreased by 11.1% due to lower occupancy and centre suspensions
- Occupancy rate declined by 7.5% due to cost of living pressures and reduced demand
- Suspended operation of approximately 40 centres in response to challenging conditions
- Extended maturity of first $100.0 million tranche of revolving debt facilities from December 2027 to January 2029
Full summary
G8 Education Ltd. reported a Net Loss After Tax of $38.8 million for the half-year ended 30 June 2026, representing a 272.2% decrease compared to the prior comparative period. The decline was primarily due to the recognition of $47.1 million of net impairment expense, impacted by the suspension of operations of 40 centres. Excluding impairment expense and other post-tax net non-trading items, the Group had an Operating Profit After Tax of $6.7 million, a 73.7% decrease on the prior comparative period. Total revenue for the half-year ended 30 June 2026 was 11.1% lower than the prior comparative period due to lower occupancy and childcare centre suspensions. Occupancy for the half-year ended 30 June 2026 was 57.0%, a decline of 7.5% compared to the prior comparative period, impacted by sustained cost of living pressures, reduced demand, and the aforementioned suspension of 40 centres. In response to these conditions, the Group announced initiatives to be delivered in the year ending 31 December 2026, including the suspension of operation of approximately 40 centres, procurement and cost saving initiatives, and the re-organisation of the Support Office structure and reduction in its cost base.
Guidance
Net Loss After Tax: $38.8 million for the half-year ended 30 June 2026
Outlook
The Group expects the cash reserves and undrawn debt facilities, together with the forecast cash flow generation from operations, will allow the Group to fulfil its obligations and meet its debts for the 12 months from the date of this report.