Perhaps in 12 months time a quarter of no growth - but an avoidance of negative growth - will be something to celebrate.
:cool:
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Perhaps in 12 months time a quarter of no growth - but an avoidance of negative growth - will be something to celebrate.
:cool:
COVID-19 Wage Subsidy Employer Search
Business Name Number of employees paid Total amount paid Last updated SUMMERSET MANAGEMENT GROUP LIMITED 1344 $8,870,544.00 08/04/2020
From MSD "you need to know whether your business has had a 30% decline in revenue" so assuming SUM have got the payout, we shareholders should expect 'at least' a 30% decline in revenue in the current reporting period. $8.87m of easy money granted to offset against employment costs (which per employee will be a great deal more), still a good thing.
But basically a forecast loss of revenue, not sure how they could lose 30%+ revenue per se with essentially a fixed income. Maybe some clever convoluted SUM accounting which they're renowned for conflating 'revenue' from ORA and care fees to include development margins? dyodd. Scott didn't get CFO of the year for nothing, clever guy, take the easy govt money, tidy up the revenue story later.
No other listed retirement company has received the subsidy, as far as I can see. May have applied though.
It’s great that in these desperate times of falling revenues Summerset have made a huge commitment to keep 1,344 employees on the payroll and retain them for at least 12 weeks. No job losses in the short term - that’s good.
Regardless of falling revenue the only areas of staffing reduction they could make, would be top level/back office positions. There is no way in hell they could reduce staffing in caregiving, housekeeping, kitchen, laundry. Most of those areas would already be working on minimum staffing levels so cutting them would mean a significant drop in the quality of care/service. Without their “hands on” staff, they have no business.
You are right re front line staff, and to be honest, I don't see that much back office staff surplus to requirements either. Given that they can't close down villages - bills still need to be sent out as well as paid, staff needs to be paid, subsidies need to be applied for.
Maybe they need a handful less of bowling green coordinators and gym managers (with these activities closed down), but more than 1300 people?
On the other hand - SUM is not just running retirement villages, they are developing and building them. I suppose this activity was grinding to a rapid halt with the lock down. Builders, carpenters, plumbers, electricians, painters and other tradespeople as well as sales staff now all busy twiddling their thumbs thanks to the lock down instead of developing the next set of units. Pretty sure that these are the people SUM applied for the wage subsidy - and rightly so.
About sixty something million came from development activities last year, (the bulk of their profit). This being down more than 30% (for any one month ?), may be all they need to show to receive this subsidy.
Another fine piece of journalism from our very own Sylvester the Cat. https://www.nzherald.co.nz/business/...ectid=12323990
The only way it makes sense (to justify the subsidy) is that cash received from ORAs is way down ...or going to be way down) ...but Q1 sales announcement was pretty upbeat wasn’t it.
Can’t imagine care and village fee revenue collapsing
Never mind they got the $6m odd ....help the cash flows
Said 1,344 staff on application ...last AR mentioned 1,400 employees ...so put their hand up for the max.
Nice they not going to dispense with people .....yet
Kind comments Beagle, especially coming from you as 'retirement sector guru dog'!
The physical paper had some graphs in there too, highlighting the major comparisons. Will put those pics on a website so you can see them.