The tutoring company Kip McGrath (ASX: KME) released its results on Friday showing a continuing implementation of its long term strategy. It’s steady as she goes.

Net Profit after Tax (NPAT) has grown by 41% to $2.0m. The company has done this amidst a flat revenue of $13.7m (more on that below). This represented an expansion of NPAT margin from 11% in FY17 to 15% in FY18. More impressively, this was not a 1 year trend. Kip McGrath has consistently grown its margin from 2% in FY12.

Behind this steady increase in margin lies a change in the business model of Kip McGrath over the years. They have become less a labour-intensive business, to a more capital light franchise operator. The journey started 8 years ago when they first trialled the Gold Franchisees model.

To read the rest of my post: Go to https://ethicalequities.com.au/2018/08/20/kip-mcgrath-education-centres-asxkme-fy-2018-annual-results/