Daily Roundup

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Kip McGrath Education Centres faces headwinds as lesson numbers slip

Kip McGrath Education Centres Ltd has reported softer revenue performance than expected in the second half of FY26, with lesson numbers declining across its network. The tutoring provider attempted to cushion the blow by raising lesson prices, but the increases haven't fully made up for the drop in student numbers. A stronger Australian dollar also weighed on the company's UK and New Zealand operations.

The silver lining? Management has kept operating expenses on a tight leash, which has freed up room to invest in initiatives aimed at improving the franchisee experience and overall network performance. The company did defer $400,000 in capital investments to FY27 to help manage cash flow. Looking ahead, Kip McGrath expects revenue to decline in constant currency terms by a low-single digit percentage, though net profit after tax should rise by a mid-single digit amount as cost discipline kicks in.

Acusensus secures contract extension with NSW

In brighter news for the tech sector, Acusensus Ltd has extended its mobile speed camera services contract with Transport for New South Wales. The deal runs for six months from July 1, 2026, with an option to extend for another six months—worth approximately $16 million per period. While the company has secured near-term revenue, a tender process for a longer-term contract remains underway, suggesting the current arrangement is more of a holding pattern than a permanent solution.

Credit Corp and Humm call it quits

The proposed merger between Credit Corp Group Ltd and Humm Group Limited has collapsed. After conducting commercial due diligence, Credit Corp identified several issues it couldn't resolve and materially reduced its offer. Humm's board confirmed that no mutually acceptable deal could be struck, and both parties have ceased discussions. Credit Corp had initially made a non-binding indicative proposal to acquire 100% of Humm, but the gap between the two sides proved too wide to bridge.

Accent Group tells Frasers to take a hike

Meanwhile, Accent Group Limited is pushing back hard against Frasers Group plc's unsolicited takeover bid. The company's Independent Board Committee has unanimously recommended shareholders reject the offer of A$0.65 per share, calling it inadequate and opportunistically timed. The committee argues the price doesn't reflect the value of Accent's Sports Direct business and that Frasers is trying to gain control without paying a proper premium. Accent plans to lay out its full reasoning in a formal Target's Statement.