Kip McGrath full-year profits rise to $2.3M
- Kip McGrath Education Centres reported a 2.1% increase in full-year net profit after tax from continuing operations to $2.3 million.
- The profit growth occurred despite continuing revenue falling 4.3% to $30.1 million.
- Disciplined cost management drove profit growth while the company focused on strengthening its franchise network.
Education provider Kip McGrath (ASX:KME) posted a 2.1% increase in full-year net profit after tax from continuing operations to $2.3 million.
The earnings growth was achieved despite revenue from continuing operations falling 4.3% to $30.1 million due to lower total lesson numbers.
Strict cost control enabled the company to improve profits, with operating expenses dropping 5.3% over the year.
Kip McGrath reported net operating cash flows of $7 million and held $5.6 million in cash with no debt as of June 30.
The board determined a fully franked final dividend of 1 cent per share alongside proposed special dividends of up to 5 cents per share, subject to shareholder approval.
Following the announcement, the Kip McGrath share price was up at $0.74.
The business returned $2.5 million to shareholders through share buybacks and $1.3 million in software and centres throughout the fiscal year.
The company stated that its strategic focus remains on franchisee support, centre performance, and establishing foundations for future network growth.
