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G8 Education expects $230m-250m writedown

G8 Education says the non-cash impairment will have no impact on its debt facilities

G8 Education says it expects to recognise a non-cash impairment in the range of $230 million to $250 million, reflecting the impact COVID-19 has had on its childcare business.

G8, which operates 475 childcare centres in Australia and 17 in Singapore, says the pandemic has exacerbated what it described as a "challenging industry supply environment that has been in place for the past 12-24 months".

The impairment charge in its half-year accounts relates the carrying value of both goodwill and a number of underperperforming centers, G8 said.

It will have no impact on the company's debt facilities or compliance with banking covenants, and will give G8 more flexibility with how it manages those underperforming assets, the company said.

At 1332 AEST, G8 shares were down 5.9 per cent to 99.25 cents.