MindChamps PreSchool (CNE) investor relations material

Executive summary

• H1 2026 revenue fell 13% YoY to $26.2m; net profit declined 36% to $1.7m, while a $5.3m gain from a subsidiary divestment supported earnings.

• Operating cash flow was $5.3m; cash and cash equivalents in the cash flow statement ended at $1.3m after debt and lease repayments.

Financial highlights

• Revenue decreased 13% to $26.183m; gross profit was $11.953m versus $14.570m, with gross margin declining to 46% from 48%.

• Profit before tax fell 15% to $2.199m; net profit fell 36% to $1.675m, and basic and diluted EPS were 0.70 cents versus 1.08 cents.

• Administrative expenses declined 8% to $13.465m and finance expenses fell 13% to $0.952m; marketing expenses rose 56% to $0.784m.

• Adjusted for the $5.278m divestment gain, reported profit before tax included a material transaction gain; 1H 2025 included a $2.904m corporate-transaction gain.

Outlook and guidance

• For 2H 2026 and FY2027, priorities include workforce recruitment and retention, occupancy recovery and operational efficiency, franchise growth, parent engagement, and disciplined capital allocation.

• Singapore plans to invest in quality and curriculum while maintaining competitive fees; Anchor Operator and Partner Operator fee caps were lowered again from January 2026.

• In Australia, the 3 Day Guarantee took effect on 5 January 2026 and extends subsidised access to a further 100,000 families; the Worker Retention Payment is extended to 30 June 2028.

• U.S. expansion is planned through a capital-light California joint venture, with pilot models and franchise partnerships under development.