• Revenue up 1.6% to $15.2m
• Net profit after tax up 15.4% to $1.5m
• Dividend increased to 1.0c per share

Kip McGrath Education Centres Limited (ASX: KME) today released its half-year financial results for the period ended 31 December 2025, reporting solid performance and continued focus on sustainable growth and franchisee support. Revenue from continuing operations for the half-year was $15.2m, up 1.6% on the prior corresponding period. Net profit after tax from continuing operations increased by 15.4% to $1.5m, driven primarily by cost savings and operational efficiencies. Earnings per share from continuing operations were 2.71c, up 16.1% on the prior period. The company also announced a share buyback of $861k, representing 1.47m shares (2.6% of share capital), and declared a dividend of 1.0c per share, up from 0.5c in the prior period. While total lesson numbers declined during the period, the franchise model is evolving towards having a more sustainable and engaged franchise network, and average lesson numbers per centre increased. Kip McGrath's new Chief Executive Officer, Melinda Smith, commenced in November 2025, and the period has been one of review, reset, and engagement, with a strong emphasis on understanding franchisee needs, identifying operational opportunities, and setting a clear strategic direction for sustainable growth.

The company currently expects lesson numbers from continuing operations to be down by mid-single digits for FY26 compared to FY25. Revenue is expected to be flat year on year, with growth from price changes being partially offset by the impact of a strengthening AUD on the translation of UK revenue. Total expenses are expected to decrease year on year by low-single digits due to cost control and the impact of a strengthening AUD on the translation of UK expenses. The company expects to achieve early double digit NPAT growth.

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