Online education booms for Kip McGrath (ASX:KME)

Company News

by Katrina Bullock

Kip McGrath Education Centres (ASX:KME) have seen a boost in online business on the back of covid 19.

Prior to covid, the education institution delivered 550 online lessons a week. This has jumped to 20,000 online lessons.

Total lessons though, including face to face are down overall. Kip McGrath has made significant changes to its cost base and remains cash flow positive.

Revenue for the ten months to 30 April of $14.3 million is 12.4 per cent ahead of the previous corresponding period, and despite the effects of Covid-19 the company expected to remain ahead of the previous year come year end.

However, due to the uncertainty and duration of the Covid-19 pandemic, the Board has cancelled the interim dividend of 1.5 cents per ordinary share.

Shares in Kip McGrath Education Centres (ASX:KME) are trading 11.35 per cent higher at $1.03.