Childcare operator, G8 Education (GEM) was a standout performer of the OC Premium Small Companies Fund during the month, gaining some 27.7%
Childcare operator, G8 Education (GEM) was a standout performer of the OC Premium Small Companies Fund during the month, gaining some 27.7%. GEM announced the acquisition of a further 63 premium childcare centres early in February and reported full year results later in the month which were in line with the company's recently upgraded guidance. We are well aware that GEM has had a spectacular 12 months of share price gains (+100%) and that the competitive environment for acquisitions is intensifying with the recent IPO of Affinity Education Group and the proposed listing of Sterling Early Education. Nevertheless, recent discussions with the senior management team of GEM have alleviated near term concerns about the competitive environment for childcare centres and we continue to believe that earnings growth will be strong for the company in the coming 12 months. More in the latest monthly report: (VIEW LINK)
OC Funds Management (OC) is a boutique small cap specialist which was founded by its investment staff and non-executive directors. OC commenced operated in December 2000 with the launch of two long only small cap Australian equity funds, the OC...
No areas of expertise