ABS a.b.c. learning centres limited


  1. 589 Posts.
    Plenty of talk in the market about underlying health of ABC
    Learning's (ABS.AU) business. In particular doubts have been raised over how its
    intangible assets - the childcare licenses - are valued. "My understanding is that
    this balance sheet item values approximately 2,323 childcare licences at A$1.5 million
    per centre and yet the company sold 49 centres during the half year at an approximate
    price of A$1.0 million per centre," says Craig Connelly, Managing Director, AR
    Capital Management in Melbourne. "That's a chunky discrepancy. If the company
    wrote their licence value down by just 10% (ie. down A$300 million), they'd breach
    their shareholder funds covenant."
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