Not much more to add.Excellent half. Gross margin of 92% is the...

Not much more to add.
Excellent half. Gross margin of 92% is the highlight after the revenue model change now fully reflected in the accounts.
I think this is now at the inflection point where surplus FCF can be directed to grow the franchises and indirectly grow the revenue from KME.
Given the tailwinds for tutoring in general, this has many years/ decades to come.

Given seasonality in EBITDA JH is typically at least 1.5x DH, so we are looking at 5.75M EBITDA in FY 19.

In addition to the operating leverage, this half is the first in a long time to have proper top-line revenue growth (10% pcp) again due to the revenue model having fully washed through to the accounts. Given the fruits of the online tutoring and advertising are only now starting to come through, the full benefits of operating leverage will start to flow through.

To give some perspective, if NPAT margins can increase further to 20% (which would be very impressive, but again JH is typically stronger than DH and the margin was 16%) and there is ongoing 10% top-line growth you are looking at FY NPAT in the vicinity of 3m. Let's see what they can do. I am somewhat skeptical of the gross margin on these set of accounts (seems too good to be true), although there has been some increase in marketing and G&A expenses that might have been re-allocated.