Among new appointments to the board are Andrew Hawkyard, chief operatingofficer of Morgan Stanley Private Equity Asia, which bought a 60 percent stake in ABC's US operations earlier this year and Colin Au,corporate adviser to Singapore's Temasek Holdings - one of ABC's biggestshareholders. They will join the board in September.
News of the company's losses dragged the share price down 9 per cent to75 cents (35p). It has fallen 86 per cent during a year of turmoil atthe company, which has declared that it plans to sell the UK-based BusyBees chain.
The company said it was 'writing down' A$213 million (100m) in its 2008 accounts and would not be paying a final dividend. Ithas also slashed its budget for acquisitions in Australia and NewZealand, saying it will spend A$165m (77m) to buy 110centres in 2009, with an additional A$45m (21m) forrefurbishments. It is planning 70 acquisitions in 2010 at a cost ofA$80m (37m), with A$17m (8m) forrefurbishments.
The company said the spending represented a "significant reduction" onits 2008 figure of A$400m (187m).
ABC courted further controversy when it announced an 11 per cent rise inchildcare fees in Australia, as the government increased the rebateparents could receive for childcare expenses from 30 per cent to 50 percent.
Parliamentary secretary for childcare, Maxine McKew, said, 'ABC Learningclaims this increase is necessary for meeting higher wages andoperational costs. It will have to justify this increase to parentsusing its services.'
Education minister Julia Gillard had warned that the government wouldcrack down on 'profiteering' from the increased rebate.
