MindChamps PreSchool (CNE) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 10% YoY to $32.2m; net profit increased 86% to $2.6m, supported by franchise income growth and a $2.9m gain on disposal.

• Prior-year exclusive territory business sales were reclassified from revenue to other gains and losses to reflect their treatment as business disposals.

Financial highlights

• Revenue was $32.2m, up 10% YoY; gross profit reached $16.6m, up 26%, as cost of sales fell 3% to $15.5m.

• Profit before tax rose 72% to $2.6m; net profit increased 86% to $2.6m, and basic and diluted EPS were 1.08 cents versus 0.56 cents.

• Franchise income increased $3.6m, while commission income fell $0.6m following the 2H 2024 divestment of the childcare enrolment business.

• Adjusted for the $2.9m disposal gain, reported profit before tax included a significant corporate-transaction contribution; no adjusted profit figure was stated.

Outlook and guidance

• For 2H FY2025 and FY2026, priorities include workforce retention, operational efficiency, franchise growth, parent engagement, brand differentiation and disciplined capital allocation.

• Singapore demand is expected to benefit from 2025 Budget measures; Australia’s Worker Retention Payment and legislated 3-day access guarantee support a cautiously optimistic outlook.

• Franchise expansion, underserved markets and U.S. pilot models and partnerships are growth opportunities; execution will focus on scalable formats and market customisation.