ABC Learning's receivers have offered the first glimpse of the group's financial health since its collapse in November 2008, showing that the remaining childcare centres sold to a not-for-profit consortium are more viable than the old ABC ever was.
Accounts lodged with the financial regulator covering the 12 months since the company's collapse report that the 678 viable centres generated receipts totalling $821.5 million and made payments of $778 million, leaving a cash balance of $43.3 million as at November 5 last year.
In a reflection of the efforts of the bank-appointed receivers, and ABC management, the strongest cash generation was in the final six-month period with cash receipts totalling $409.3 million and payments of $367.5 million.
The figures paint a rosy picture for the not-for-profit GoodStart consortium, which acquired the remaining centres last month for what is believed to be about $100 million.
GoodStart's operation will not be affected by some expenses associated with the receivership. For starters, there is the $14.5 million paid out to the receivers. The accounts also recorded an $8 million payment to Westpac, an advance on the secured charge it had over ABC's assets, along with a banking consortium owed $1 billion, including Australia's other big four banks.
GoodStart, established by Mission Australia, Social Ventures Australia, the Benevolent Society and the Brotherhood of St Laurence, will also be exempt from payroll tax, saving it $20 million a year.
An examination of ABC's collapse last month, which continues in March this year, revealed that the company was avoiding payment of tax bills in order to pay wages.
