profitable + online growth & m/c of $6.5m, page-3

Please refer to note 14 of the 2013 KME annual report:

“on-line tutoring services to be 15% of total lessons over the 3 year projection period, which management believe is reasonable given current growth in the market segment.”

Please also refer to the Australian article I referenced above:

“Kip McGrath Education Centres chief executive Storm McGrath….said the centre's tutoring streaming service was being piloted and would be rolled out early next year. In five years, more than half his student clients will be tutored this way.”

It may be an exaggeration, but they seem confident….however whether they get to 50% or not, it is certainly a major growth area, and one that KME has invested a lot of capital expenditure in to date, to get their online tuition to a premium standard.