EVO - Evolve Education

[silverblizzard888]

NZ obviously hasn't been working for them for a long time, the sale price is good for what it is and allows them to pursue a more profitable approach in Australia.
The demands from Unions also didn't make it easier especially considering how limited the financial gain was operating at their current state.

[Balance]

NZ obviously hasn't been working for them for a long time, the sale price is good for what it is and allows them to pursue a more profitable approach in Australia.
The demands from Unions also didn't make it easier especially considering how limited the financial gain was operating at their current state.

Australia is where the directors’ real expertise & experience can be deployed to maximum advantage - as they have already showed.

$50m+ cash in the bank after the sale of NZ gives them plenty of fire power to pursue meaningful and transformative acquisitions.

[whatsup]

13 times 21 earnings agood price imo for a company that has very few takers

[silverblizzard888]

Australia is where the directors’ real expertise & experience can be deployed to maximum advantage - as they have already showed.

$50m+ cash in the bank after the sale of NZ gives them plenty of fire power to pursue meaningful and transformative acquisitions.

Exactly, they made their name in Australia and very easily could do it again. They know Australian centers fill up more consistently and they need those enrolment numbers to be high to gain those good profit margins. The acquisition and growth trail is much more scalable than what they have in NZ.

[whatsup]

With a far bigger economy in Aust their client base can afford the higher overheads ( staff compliance costs etc ) that are coming here in N Z, great move imo.

[Balance]

With a far bigger economy in Aust their client base can afford the higher overheads ( staff compliance costs etc ) that are coming here in N Z, great move imo.

And governments there (Federal & State) prepared to put real money into the sector. Also, progressive immigration policies which attract teachers and caregivers.

https://www.abc.net.au/news/2022-06-...lion/101149014

Excerpt : "NSW government reveals $5 billion childcare plan in state budget. Under the plan, the state government will give subsidies to private childcare providers, with the intention of lowering fees. The money will be given to ensure some childcare spots will be set at certain prices."

https://www.theguardian.com/australi...male-workforce

Excerpt : "A $1.7bn childcare boost will be included in next week’s budget, with the government saying it wants to remove disincentives for women returning to work."

[whatsup]

Solid opening in Aust boosting the S P in N Z, must have gone down well .

[sb9]

Very timely and sensitive move by EVO Board and one that is warranted. AUS is where the opportunity lies ahead wherein the wider Govt. policies favour that sector big time.

[dreamcatcher]

Nice bounce! Better dig out my holdings from the bottom draw...........

[DTC]

Regarding the proposed sale of the NZ centres, to be 'voted on' tomorrow:

It's pleasing to see previous Posters so optimistic. Despite the comments extolling the "sell here, buy there" strategy, I can't understand how the 2 different companies (the Aussie crew (Shine BidCo Limited?) and EVO) can make such divergent value judgements on where to invest in early childhood centres.

What does Shine BidCo know that EVO doesn't, and vice versa; is it a case of "the grass is greener over there..." for both?

Government policy can change in the blink of an election or a charismatic administrator.

(I'm holding a few, and well under water, even having topped up at 60 cents recently).