ABC Learning Centres has put off $150 million worth of sales and told investors to expect a fall in earnings for the 2008 full year.
Meanwhile, the company said negotiations of the sale of a 60% interest in its
ABC’s share price closed 2.4% lower to $1.60 yesterday after ABC revealed its EPS will likely be $0.34-$0.36 cents for FY08.
ABC said timing issues associated with the slowed pace of the childcare centre acquisition program and property disposal program, coupled with other less material profit and loss impacts, have contributed to this result.
The company had previously in November 2007 and on February 25th 2008 that it expected earnings in excess of $0.41 per share for FY08, namely EPS growth of more than 15 per cent.
Meanwhile, ABC said has also slowed the pace of acquisitions of new childcare centres in
Finally, ABC said its ongoing program for the sale of its properties has hit a snag.
The company blamed recent market conditions which have seen a total $150 million worth of property sales planned for H2 FY08, deferred to FY09.
“The company remains confident that the sales will still occur but at a later date than had been expected,” ABC said yesterday.
Australian Property Journal
