And contrasting with Vocation’s self-inflicted woes, was the much awaited trading update from childcare operator (the other end of the education chain from Vocation, if you think about it) G8 Education (GEM) which told the ASX yesterday it will increase the quarterly dividend to be paid in January of next year and has told investors audited earnings for the financial year to 31 December are expected to exceed the average broker forecasts.
The news saw the shares jump 5.8% over the day to end at $4.51, a huge different to the battering Vocation shares took yesterday.
The company said its annual dividend will increase from 20 cents a share to 24 centse, meaning that the next quarterly dividend will increase from five cents a share to six cents a share, fully franked.
GEM YTD – G8 Education lifts dividend
“G8 Education Limited continues to be well positioned and this increase reflects the strong performance of G8 Education’s operations,” managing director Chris Scott said in a statement.
The company said it anticipates “audited EBIT (earnings before interest and tax) for financial year ended 31 December 2014 will exceed the average forecast of the eleven brokers that cover G8 Education being $101 million, by less than 5%.”
In its latest half-year results, the company posted EBIT of $30.1 million – an increase of $13 million on the same period a year earlier, thanks to the impact of recent acquisitions
G8 Education is due to release full year results by the end of February 2015.
Investors will be wanting to see G8 start making those new purchases pay their way, along with its existing businesses.
