At a first look I'm happy with this update due to the huge investment in tutorfly disguising that profit figure, though I'm disappointed at the franchise fee revenue figures. Stripping out tutorfly I get an adjusted NPAT of ~ 2.55m.

Based on the previous update, I had thought the kip results were in line with my base case assumptions (I've reincluded these below - wondering if I must have deleted them or something). I'm having a rethink of whether I should be on my base case at the moment.

• Most metrics have improved on last year generally. 
• The revenue figures for the franchise fees were not stronger than the first half, which I was hoping for. The increase in revenue from the first half was mostly to do with the higher corporate incoming (inc. tutorfly) in the second half. 
• Tutorfly revenue of 1.2million, with loss of 0.9 million, BUT 2.6 million contracted work secured in FY24. This is nice, but I wouldn’t necessarily expect it to show next half due to American holidays. 
• Stripping tutorfly out, I have an NPAT of 2.55 mil. This has Kip on an adjusted PE of ~ 12.2. 
• Recovery in UK pound may be a hidden hand helping. 1.71 aud per UKP compared to 1.98 now. My guesstimate is around a 600k increase in revenue - theoretically this should also impact UK expenses.  
• Software depreciation continues to be high. Effectively a cost. 
• New sales of franchises remain slow.
• Now 29 corporate centres. This is up from 24 Corporate centres last year. (With ~ 20% increase in total corporate centre revenue exc. tutorfly by my count)
• Decreased marketing spend of -2967 compared to -3543 this year might have increased profit.
• Franchise support (merchandise?) has increased a lot. This might indicate investment.  

OLD NOTES

Base Case assumptions:

Starting 1.8m annual npat stripping tutorfly out.

Growth of 4% compounded + 200k per year (Compounded after added)

This generates a value of 42m after 30 years.

Bull Case assumptions:

Starting 2.8m annual npat stripping tutorfly out.  

6% growth + 400k fixed growth (corporate) per year

This generates a value of 73m after 30 years.

Taking the average of these two results we get a value of 115/2 = 57.5m

There are 56 519 331 shares on issue, so this gives a target price of $1.017