Ann: Appendix 4E and 30 June 2018 Annual Report to shareholders, page-3

Solid report for me.

Positives:

Revenue from franchise fees now 80% of all revenue and growing at 16% yoy

Likely some operating leverage from national/international systems and majority now gold franchisee partners

Online lessons growing well

Purchase of area developer business in East Midland

Operating leverage- COGS as % of revenue now only 27%

Negatives:

Much lower growth in Aus/NZ business

Share price- this has run a LOT and is certainly not cheap at the moment

I think this is fairly priced right now on an FCF yield of approx 7%.  I guess a lot depends on the success/usability of the new online platform and the success of the national marketing campaigns in the coming year, but there is certainly a good base from which to grow.