- Kip McGrath Education Centres (KME) has seen a rise in online education due to the current pandemic
- Before COVID-19, the company delivered 550 online classes a week; now, it is delivering 20,000 online lessons a week, despite a drop in overall class enrolments
- The company says it has seen a significant shift in the way its business will deliver the lessons in the future
- Revenue over the past 10 months is $14.3 million, a 12.4 per cent increase compared to this time last year
- Kip McGrath is up 8.11 per cent on the market today, selling shares for $1 each
Kip McGrath Education Centres (KME) has seen a rise in online education due to the current pandemic.
Prior to COVID-19, Kip McGrath was delivering 36,000 face-to-face classes and 550 online lessons a week. Last week, the company delivered 20,000 online classes, as well as 2400 face-to-face lessons.
While total lessons are down overall, the company has seen a significant shift in the way its business will deliver the lessons in the future.
"We anticipate a steady increase in face to face tutoring as the current pandemic subsides and students return to school in our key markets," the company said.
Revenue over the past 10 months is $14.3 million, a 12.4 per cent increase compared to this time last year.
Kip McGrath says its cash position remains consistent with the start of the financial year. However, the company has cancelled its interim dividend due to the uncertainty around the COVID-19 pandemic.
Is the future online for Kip McGrath?
Over the past five years, the company has spent time and resources building an online presence. As a result, Kip said it is well-positioned for current and future growth.
Prior to the pandemic, the company's cloud-based system offered 10,000 lessons to students over five years. But this number has increased to 20,000 lessons per week, due to the pandemic.
"While the pandemic has created some short-term upheaval management believe that online will continue to see a strong uptake from existing and new students," the company said.
"We believe a pivotal point has been reached in how we deliver education in our long and successful history. The current pandemic has exponentially accelerated this change from what we believed would take years to months," it added.
Kip McGrath is up 8.11 per cent on the market today, selling shares for $1 each at 12:53 pm AEST.