• Revenue from continuing operations up 8.9% to $31.4m
• EBITDA from continuing operations up 13.4% to $7.8m
• Profit after tax from continuing operations up 53.6% to $2.3m
• Discontinuation of USA operations due to unsustainable business models
• Appointment of new CEO to commence in 1HFY26

In FY25, Kip McGrath Education Centres Limited (ASX: KME) experienced a year of refocus, particularly in the second half marked by a recommitment to its core business and a decisive exit from the USA operations due to unsustainable business models. While the company faced challenges, including some non-recurring costs, it remains committed to delivering high-quality tutoring services to students worldwide. The recent appointment of a new CEO (to commence 1HFY26) brings renewed focus on long-term growth and capitalizing on the company's core strengths, ensuring sustainable success in existing markets. The company's continuing operations in APAC and the UK saw an 8.9% revenue growth, with EBITDA from continuing operations increasing by 13.4% to $7.8 million. One-off items including the CEO changeover cost and the expense relating to the Newcastle onerous lease resulted in an underlying EBITDA of $8.5 million. The company's franchise business saw overall revenue growth of 11%, with franchise fees continuing to make up the majority of the company's revenue. The decision to discontinue USA operations, while involving associated costs, allows the company to direct its resources towards the highest value opportunities. Kip McGrath is focused on delivering quality education and driving shareholder value in partnership with its franchisees, while embracing new technologies to enhance its capabilities.

Revenue from continuing operations for FY26 is expected to grow by 8-10% compared to FY25. EBITDA from continuing operations for FY26 is expected to increase by 10-12% compared to FY25.

Kip McGrath is excited by the potential of AI to extend its impact, but the company's identity remains clear - it succeeds because skilled teachers work directly with students in centres, both physical and online, and that human element of learning cannot be easily replicated by any algorithm. The company is focused on optimizing operations across its current footprint and driving sustainable success in existing markets.