MindChamps returns to profitability as Australia remains key growth market

MindChamps PreSchool has reported a return to profitability in FY2025, with the Singapore-listed early learning provider highlighting improved financial performance, expansion activity in Australia and plans for further franchise growth as it positions itself for future international expansion.

Speaking at the company's Annual General Meeting, Founder, Executive Chairman and Group CEO David Chiem and Chief Financial Officer Jevons Yip outlined a year characterised by operational optimisation, strategic transactions and continued investment in the group's preschool network.

The results show MindChamps recorded revenue of S$60.4 million in FY2025, down 4 per cent from S$63.0 million in the previous year. Despite the decline in revenue, profit after tax increased significantly to S$2.1 million, compared with S$237,000 in FY2024. The company attributed the improvement to operational efficiencies, a franchise territory transaction in Victoria and gains arising from corporate transactions during the year.

Australia continues to represent the largest contributor to MindChamps' revenue, accounting for approximately 68 per cent of group revenue during FY2025.

Financial information presented at the AGM showed Australian operations generated approximately S$41.1 million in revenue compared with S$19.3 million from Singapore operations. Despite a modest decline from FY2024 levels, Australia remained the company's dominant market.

The company also highlighted investment activity in Australia during the year, including the acquisition of the Frenchs Forest Preschool Centre and investment in a Victorian joint venture, contributing to growth in non-current assets and strengthening the group's overall balance sheet position.

Operational data presented to shareholders showed the total number of MindChamps preschool centres remained stable at 74 across Singapore, Australia and international markets. Maximum licensed capacity increased by 3 per cent to 8,906 places, while student enrolments declined by approximately 6 per cent to 5,669 children.

The company nevertheless reported a significant improvement in profitability, maintaining a gross profit margin of 48 per cent while increasing profit before tax from S$548,000 to S$2.1 million. Profit after tax increased almost nine-fold during the reporting period.

Net assets also improved by approximately S$3.3 million, reaching S$70.2 million at the end of FY2025, while bank borrowings reduced from approximately S$14.6 million to S$11.6 million.

Like many providers operating in the Australian early childhood sector, MindChamps identified workforce costs as its largest operating expense.

Staff costs represented approximately 64 per cent of total operating costs in FY2025, significantly exceeding rental, marketing, maintenance and other operational expenses. Total staff costs were reported at S$41.4 million for the year.

The figures reflect broader sector-wide trends, where workforce costs continue to be the largest expenditure category for most early learning providers and remain central to discussions around service viability, quality and sustainability.

Looking ahead, MindChamps told shareholders it intends to continue optimising core operations while pursuing further growth opportunities.

Future plans outlined at the AGM include expanding franchise operations in additional Australian regions and progressing the company's international expansion strategy, including growth into the United States and other international markets.

During the shareholder question session, management confirmed it is actively positioning the brand within the United States and already has a multi-unit franchise partner operating in the Washington DC, Maryland and Virginia region, with discussions continuing in other states.

The company also reaffirmed its commitment to technology and innovation, including continued development of its Early Learning Management Systems platform and research partnerships designed to support long-term growth and differentiation.

The FY2025 results come at a time when early childhood providers globally continue to navigate workforce shortages, rising operating costs and affordability pressures impacting families.

While enrolments across the MindChamps network softened during the year, the company's improved profitability and continued investment activity suggest management remains focused on long-term expansion and operational sustainability.

With Australia continuing to contribute more than two-thirds of group revenue, the local market is expected to remain central to MindChamps' future growth strategy as the company seeks to expand both its franchise footprint and international presence.

Read the full MindChamps FY2025 Annual General Meeting Presentation here.