Kip McGrath Education Centres Limited provided earnings guidance for the first half and full financial year of 2016. The company is expected the company's EBITDA for the first six months of the financial year will be in the range of AUD 400,000 to AUD 450,000. This is lower than the prior comparative period.

However, the forecasted EBITDA and profit after tax for the full 2016 financial year remains above the result achieved in the prior year. The recurring revenue for the first half is generally in line with last year as franchise fees continue to increase. However, the Master Franchise sales and Franchise sales for this period were below the comparative period by $250,000 and $100,000 respectively.

This shortfall due to timing differences is expected to be largely corrected by year end. The company expects to book revenue for this in the second half after incurring costs of $300,000 during this period. The company remain optimistic for both online business and the licensing opportunities and that the full year's profit after tax will see an increase on the previous year.