TIDMMLVN
RNS Number : 2700K
Malvern International PLC
24 August 2023
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
24 August 2023
MALVERN INTERNATIONAL PLC
("Malvern", the "Company" or the "Group")
Trading update
Significant improvement in student numbers and revenues
Malvern International plc (AIM: MLVN), the global learning and
skills development partner, is pleased to provide a trading update
for the six months ended 30 June 2023 ("H1") ahead of its interim
results to be announced in September 2023.
Revenues more than doubled to c.GBP4.8m in H1 2023 compared to
GBP2.3m in H1 2022. The Group is expected to announce a return to
profit for the first half of the year (H1 2022: Loss GBP0.7m). This
is the result of strong University Pathways student intakes in
September 2022 and January 2023 as well as a 40% increase in
English language teaching ("ELT") revenues in H1 2023 compared to
H1 2022.
Forward bookings and outlook
University Pathways
Momentum has continued into H2 2023 with the number of students
starting courses for September expected to be materially ahead of
the previous year. Approximately 440 new students will be joining
the International Study Centre at The University of East London
("UEL") compared to 230 in September 2022 and 46 starters in
September 2021. Around one third of this income will be recognised
in H2 2023, with the remainder recognised in H1 2024.
The increase is the result of the expansion of the international
sales team, improved processes to manage and convert the student
recruitment pipeline, and significant recruitment travel to key
feeder markets including joint marketing trips to India and Nepal
with UEL.
In order to continue to expand our University Partnerships
division, underpinned by enhanced systems of control and reporting,
the Company has invested in support from highly experienced
consultants in this sector.
The UEL International Study Centre contract has automatically
extended for the 2023/24 academic year, as anticipated, whilst we
continue negotiations regarding the intended longer term extension
to our contract.
Our NCUK centre is expected to run with a cohort of around ten
students in September 2023 with a bigger cohort joining in January
2024. These numbers remain low but the Board expects to build on
them as the Group develops a brand presence in the key regions of
China, Nigeria and South East Asia.
English language teaching ("ELT")
Our peak months in July and August are currently c.20% higher
than in the same months in 2022, reflecting a return in confidence
in the market as a result of more Middle East and North Africa
("MENA") students travelling, supported by relaxed visa conditions
for Saudi Arabian students coming to the UK with the introduction
of the electronic visa waiver from 1 June 2022.
Juniors
As expected the Italian government funded programmes went ahead
this summer. We also welcomed a much wider nationality mix with
groups from MENA, Commonwealth of Independent States ("CIS") and
Latin America ("LATAM") regions and Taiwan. The Company delivered
programmes to over 2,000 students in July and August 2023 (2022:
976), generating revenues of c.GBP3.7m (2022: c.GBP1.4m). This
income will be recognised in H2.
The Board feels that this is a very good result and, together
with a large increase in the number of agents, the Group has a
solid base on which to keep building for 2024 and beyond.
Loan facility and working capital
As at 30 June 2023, the Company's debt facility with
BOOST&CO remained at GBP2.6m and cash balances were GBP2.1m,
which includes payments on account for Juniors. The Board believes
the Group's working capital position is more than sufficient to
fund ongoing investments in the business.
For further information please
contact:
Malvern International Plc www.malverninternational.com
Mark Elliott - Chairman Via our website
Richard Mace - Chief Executive
Officer
WH Ireland (NOMAD & Broker) www.whirelandcb.com
Mike Coe / Sarah Mather 0207 220 1666
Notes to Editors:
Malvern International is a learning and language skills
development partner, offering international students essential
academic and English language skills, cultural experiences and the
support they need to thrive in their academic studies, daily life
and career development.
University Pathways - on and off-campus university pathway
programmes helping students progress to a range of universities, as
well as in-sessional and pre-sessional courses.
Malvern House Schools - British Council accredited English
Language Training at English UK registered schools in London,
Brighton and Manchester.
Juniors and summer camps - fully-immersive summer residential
English language camps and bespoke group programmes for 13 to 18
year olds.
For further investor information go to
www.malverninternational.com
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