I think there's valid points from both your's and skint's posts....

I think there's valid points from both your's and skint's posts. I myself have been a holder for over 4 years now. Definitely happy with yearly dividends and huge potential of this business but as skint has correctly pointed out, the results don't reflect the story they're trying to sell.

All this time, they've been spruiking growth in online lessons. If this is the case, the EBITDA margin should be much higher than where it is now.

Technically, EBITDA is lower for the last 2 years compared to FY19 due to AASB16 which gives EBITDA a small boost thanks to re-classification of operating lease payments to finance leases.

We've given management long enough to execute their strategy yet been disappointed now 2 years in a row. Yes, COVID was a Black Swan event but the pivot to online tuition should've mitigated any risks to the growth trajectory. In fact, there should be parents screaming for KME's services given how many of them are starting to lose their marbles over home schooling their children.

The other thing I noticed was the revenue increase is not proportionate to their marketing expense increase and even worse, personnel costs. Therefore, marketing effectiveness is also poor.

The only positive for me that came out of the results yesterday was managements ability to massively increase their operating cashflow conversion to circa 90% (after stripping out the free kicker from higher payables which I'm a little bit concerned may unwind in FY22). It is this factor that made me hold this stock following the poor half yearly result but my patience is wearing thin in terms of whether they'll actually deliver revenue and more importantly, profit growth next year.