The Queensland company has also warned of a staff shortage and sector-wide issues including delayed enrolments as well as an “unprecedented increase is closures” during January and lower attendances because of isolation requirements.

The company reported a full-year profit of $45.7 million, a big turnaround on the $189 million loss the previous year, but still below 2019’s $52 million.

Dividends returned with a 3 cents a share payout, fully franked, but the dividend reinvestment plan was suspended.

It did not release a figure for its on-market buyback but at its current market value of $1 billion, the buyback would cost $100 million.

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The volume of the buyback would be determined by balancing shareholder returns and leverage levels, the uncertainty of the earnings recovery and funding of strategic priorities.

The company said there were strong fundamentals that were driving long-term demand, including forecast growth in the zero to four year old population and a long-run positive immigration trend expected to re-establish as borders re-opened.

“Attracting and retaining skilled educators remained the sector’s greatest challenge, exacerbated by the temporary drop in net migration reflected in a doubling of vacancy rates across the sector” the company said.

Chief executive Gary Carroll said he was pleased with the result.

“Occupancy has been impacted right across the sector and this was particularly felt in the second half as a result of the escalating Covid-19 environment,” he said.

The company has also paid out $38 million in wage repayments to more than 18,000 current and former staff who were underpaid. It has another 7400 workers still to be reimbursed.

G8 shares rose more than 3 per cent on the announcement.