Kip Mcgrath Education Centres Limited · ASX:KME
Kip Mcgrath Education Centres — Investor Presentation (August 2018)
10 slides from Kip Mcgrath Education Centres's investor presentation, Aug 22, 2018
Slide 1: Shareholder Presentation August 2018
Shareholder Presentation August 2018
Slide 2: 2018 results
2018 results • Franchise fee revenue increase: 16% • Profit increase: 40% • EBITDA margin increase: 19.5% to 27% • EPS: 3.2 to 4.5 • Dividend increase: 2c to 3c • Gold Partners increase: 230 to 267 • Total centre numbers increase: 546 to 550
Slide 3: Current Growth Drivers
Current Growth Drivers • The business revenue and profit is growing due to increase in Gold Partner franchisees. Revenue increased by 24%. • Centralisation of servicing franchisees globally (COGS decrease 25%). We have been buying back Master Franchisee and Area Developers for over 6 years in mature
Slide 4: Growth franchise fees and non sales revenue
Growth franchise fees and non sales revenue ($’000) 14000 12000 10000 8000 6000 4000 2000 0 2015 2016 2017 2018
Slide 5: Growth in gold partners
Growth in gold partners 300 250 200 GoldPartners 150 100 50 0 2015 2016 2017 2018
Slide 6: Annual Online lesson growth
Annual Online lesson growth 14000 12000 10000 8000 Annual online lessons 6000 4000 2000 0 2015 2016 2017 2018
Slide 7: Market/Growth Opportunity
Market/Growth Opportunity • No competitors in our area of the market. • No organised global competitor. • Number of school children in Australia is 3M, and according to a survey conducted by the ATA around 20% receive tuition. • KME currently teaches 14,000 lessons a week in Australia. • School chil
Slide 8: Kip Onscreen
Kip Onscreen • Children are taught via web cam with real teachers. • Allows tutoring to be done anywhere and anytime. • Allows greater scale in the business and sharing of resources. • National advertising is gaining traction in areas we do not have centres. • Current student numbers are growing wee
Slide 9: Outlook
Outlook • We expect Gold Partner to continue to grow at previous levels. • We expect Gold Partner revenue to continue previous growth. • Increase in national advertising in Australia and UK to continue to grow student lessons in centres. • Increased focus on Onscreen for centres to grow. • Further i
Slide 10: Disclaimer
Disclaimer The presentation includes certain forward looking statements which are not historical facts but are based on KME’s current expectations, estimates and projections about the industry which KME operates, and beliefs and assumptions regarding KME’s future performance. Words such as anticipat
Kip McGrath Education Centres — Investor Presentation (August 2018) on 6ix