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

Not bad. 200k, 50k, and 100k worth of shares purchased yesterday, which is a total value of ~$150-175k.

Curious that the directors chose to coordinate buying, not sure how to interpret that.

There has been a further significant director purchase in the last month or so.

Cluey also posted quite a strong quarterly yesterday, which makes me think that demand for tutoring is very high at the moment. Given this, the director buying, and the scuttlebutt I've heard on here I'm thinking they might post a strong quarterly.

- edit - Apparently there aren't quarterlies for companies that make a profit (with some additions)! whoops - I was thinking there might be a short term trade here before their quarterly drops and as a disclosure I have bought some more shares. (I might be wrong, I'm not much of a trader =/ )

Two directors have purchased within the last month.

One for 100k, one for over 200k.

Price shot up on announcement 8%~ today.

Everyone I talk to seems to be buying KME, so I'm curious as to who's providing the volume for selling.

Disclosure - My largest IRL position atm and bought more today.

A substantial purchase by Storm here.