AFJ - Affinity Education Group

[System]

Affinity Education will be a provider of education and care to children aged six weeks to 12 years in the Australian market. Affinity Education's Initial Portfolio will comprise 57 established child care centres and the management rights to 11 centres, the acquisition of which will be primarily funded by the IPO. The centres are located in Queensland, New South Wales, Victoria and the Northern Territory.

http://www.affinityeducation.com.au

Affinity Education Group Limited (AFJ) is scheduled to list on the ASX on Monday, December 9th, 2013.

 

[Valued]

Read the risks. I thought of this one before we even got to it. This should be highlighted in bold and underlined with big red arrows pointing to it.

Changes to subsidies

Government subsidies through the Child Care Benefit and Child Care Rebate
scheme represent a significant portion of Affinity Education’s revenue. These
subsidies are subject to review at any time and any reduction may have a
significantly adverse impact on the operations of Affinity Education.

Knowing Abbott, there is a huge risk here of government subsidies being removed in the future. I am still going to continue to read through their financial information but I consider this the largest risk the company faces. A removal of subsidies would be like what happened to MMS when Labor announced the FBT changes.

I will say they are honest. Their two page list of risks pretty much covers it all.

 

[peaceofmind]

agreed re risks but the govt is unlikely to change policy on early education subsidies. They need to encourage growth in families and population.

 

[AllenPivot]

I thinks Affinity Education Group is great kind of group that promote Education through peoples easily,.
I really appreciate the work of Affinity Education Group .,.They play a vital role in the field of Education,.
Keep it up Affinity Education Group,.,.

 

[ROE]

agreed re risks but the govt is unlikely to change policy on early education subsidies. They need to encourage growth in families and population.

Business that relies heavily on subsidies is high risk, your investment could vaporise over night, plus if you make any decent return the cost cutter in government will scrutinise and they look at cutting back.

be very careful don't assume things wont change...a better way to look at it, can you cope if the government was to reduce subsidies? that the question I usually ask if a stock I buy carry that sort of risk.

There are plenty of business around why put yourself into a high risk category?

 

[System]

On December 15th, 2015, Affinity Education Group Limited (AFJ) was removed from the ASX's official list following implementation of the scheme of arrangement whereby all the Company's shares have been acquired by Anchorage Childcare Pty Ltd.