Board change is good and the change in CEO probably also helpful but the NZ operations are a big ship to turn and there's plenty of iceberg's around.
Holders will be hoping management do more than just rearrange the deck chairs on the Titanic.
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Board change is good and the change in CEO probably also helpful but the NZ operations are a big ship to turn and there's plenty of iceberg's around.
Holders will be hoping management do more than just rearrange the deck chairs on the Titanic.
Interesting chat with an industry insider working for Evolve on the weekend.
Management attempting to screw costs down even further.
Evolve now asking parents to pay for their children's attendance on statutory holidays when the kids are not there and the centre's are not even open to provide care if the parents did drop them off ! One wonders if that's even legal. Charging people for a service that's not provided and cannot be provided is surely a breech of the fair trading act ? Thought's anyone ?
On the topic of more and more centres opening up, its absolutely relentless and the feedback I get is that parents have almost no loyalty whatsoever, (doesn't matter how nice the staff are) and are often swayed by appearances, i.e. the new and fancy early child care centre with brand new facilities and play equipment must be better than the older Evolve centre…
For mine...there is no evidence whatsoever that management can stop the rot at NZ childcare facilities which is still the vast majority of their business model and the widespread proliferation of newer centres will keep intense pressure on occupancy, (read profitability), at existing N.Z. centres.
I didn’t believe if the management putting tens millions of dollar into a company they doesn’t have a plan to turn it around and I only believed people who puts millions into it should call as insider always follow where the funds goes as insider in my own definition time will tell not far away
Hi Beagle
I assume you don't hold any shares in EVO
How did you guess :)
I think the big strategy is to whatever is necessary to maintain NZ profitability at what it is now (Earnings growth not imperative) and see if we can make a decent bob or two in Australia with new centres.
Seems to fit with driving costs down even if it does impact centre performance ....as long as what profit they have in NZ doesn’t go backward.
The future is Australia ...hoping NZ not a drag on earnings.
Not investing in modernising N.Z. centre's will lead to even lower occupancy and lower N.Z. profits.
Half year out ...some positives
Turnaround started
http://nzx-prod-s7fsd7f98s.s3-websit...136/313011.pdf
Plan in place doesn’t like the front part but that is why both Chris step in turn around started number looks good especially when adding more aussies acqusition
Bit confused
They say ‘..full year ebitda guidance is revised to $6.0m to $6.5m’
But later on they say ‘ ..CY2020 ebitda will be no less than $15m ....’
Are they taking the mickey or is it me that just not understand modern jargon