• Revenue from continuing operations increased by 1.6% to $15.2m
• NPAT from continuing operations grew by 15.4% to $1.5m
• Interim dividend of 1.0 cents per share declared

Kip McGrath Education Centres Limited reported a 1.6% increase in revenue from continuing operations to $15.2m for the half-year ended 31 December 2025. Although lesson numbers fell by 5% on the prior period, average lessons per centre, average lesson price and franchise fee % all increased, contributing to revenue growth. Expenses were flat on the prior period and NPAT from continuing operations grew by 15.4% to $1.5m due to cost savings and operational efficiencies. The company's new CEO, Melinda Smith, commenced in November 2025, and the half-year has been one of review, reset and engagement, with a focus on understanding franchisee needs and setting a clear strategic direction for sustainable growth. Global network revenue reached $54.1m, a 2.9% increase compared to the same period last year. The company has a cash balance of $6.2m and continues to have no debt. During the half, the company commenced a share buyback and purchased 2.6% of the company's opening share capital. For the year ending 30 June 2026, the company expects lesson numbers from continuing operations to be down by mid-single digits on the prior year, revenue to be flat year on year, and total expenses to decrease year on year by low-single digits. The company expects to achieve early double digit NPAT growth.

For the year ending 30 June 2026, the company expects lesson numbers from continuing operations to be down by mid-single digits on the prior year, revenue to be flat year on year, and total expenses to decrease year on year by low-single digits. The company expects to achieve early double digit NPAT growth.

The company's priority is to support franchisees to grow lesson numbers, strengthen centre performance and ensure the company is well positioned for long-term, sustainable growth. With a strong brand, a committed franchise network and a clear understanding of where the company needs to focus, it is well positioned for the future.