KME FY2025 Full Year Results Media Release
| Stock | Kip Mcgrath Education Centres Ltd (KME.ASX) |
|---|---|
| Release Time | 26 Aug 2025, 9:40 a.m. |
| Price Sensitive | Yes |
Kip McGrath reports FY2025 results, announces buyback
- Revenue from Continuing Operations $31.4m up 8.9%
- EBITDA from Continuing Operations $7.8m up 13.4%
- Loss and Impairment from discontinued USA operations $(7.6)m
- Final dividend of 0.5 cents fully franked
- On-market share buy-back announced
Kip McGrath Education Centres Limited (ASX: KME) has announced its FY2025 Annual Results. The company experienced a second half of refocus, marked by a recommitment to its core franchise business and a decisive exit from its USA operations. The company saw revenue growth of 8.9% from its continuing operations (APAC and UK) for FY2025. EBITDA from continuing operations increased by 13.4% to $7.8m. Underlying EBITDA was $8.5m, excluding one-off items. The company's growth in franchise business revenue was strong at 11% year-on-year, while total revenues from corporate owned centres grew at a more moderate 4%. From a geographical perspective, the UK saw double-digit growth at 12% (8.9% in local currency), with APAC following at 10%, and the Middle East and South Africa remaining flat year-on-year. Network Billings (which includes all the revenue received by Franchisees) was $113.8m, up 6% versus FY2024 (excluding the USA). The company's underlying net profit for the year was circa 2.5% of its Network Billings, which remains below its cost of Capital. The company has declared a final dividend of 0.5 cents per share, payable on 25 September 2025. In addition, the company has announced a buy-back of up to 10% of its shares over the next 12 months.
The company currently expects lesson numbers to be flat year on year, with price changes expected to achieve mid-single digit Revenue growth and costs increasing at a lower rate than revenue. Depreciation and amortisation are expected to be $0.5m lower in FY2026 over FY2025, which the company expects to result in early double digit NPAT growth. Capital Expenditures are expected to be circa $1.7m, driven by technology, acquisitions, and other capital items.
The company's business model is capable of producing strong results and higher returns for shareholders. The Board looks forward to FY2026 with the knowledge that the company has a network of franchisees who are committed in their local communities to student success.