REG - Fairview Intnl PLC - Comment on tax changes announced in UK budget

Fairview InternationalAnnouncement

01/11/2024 07:00

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RNS Number : 5166K  Fairview International PLC  01 November 2024

Fairview International PLC

 

("Fairview" or the "Company")

 

Comment on tax changes announced in UK budget

 

Fairview, the operator of international schools following the International
Baccalaureate curriculum, notes the changes to the tax treatment of private
schools that were announced by the UK government in its autumn budget on 30
October 2024.  The imposition of VAT at 20% from January 2025, coupled with
the removal of business rates relief and increased employer's national
insurance contributions in April 2026, was widely expected.  Fairview does
not own any UK private schools so these changes will not adversely impact its
trading.

 

Daniel Chian, Chairman of Fairview, said: "Like many in the independent
schools sector, I am naturally disappointed that the UK government has chosen
to apply a tax on education and I sympathise with families and schools who
will suffer hardship as a result of these measures.  However, we are
reassured by the government's commitment to ensure that local authorities and
devolved governments will be compensated for the VAT charged on fees for
pupils with special educational needs. Fairview has a longstanding focus on
supporting students with diverse needs, and we will always work closely with
parents, local authorities, and communities to ensure that every child
receives the support they need.

 

"Fairview International plc at present only owns independent schools in
Malaysia and, whilst these changes will have no negative affect on our trading
or financial position, I do have two observations on factors that may be
relevant to us.

 

"Firstly, we have made no secret of our plans to grow our network of schools
and have identified the UK as one of our target countries for expansion.  As
much as I regret being the beneficiary of another person's misfortune, it is
surely very probable that a number of UK independent schools will struggle
under the higher costs imposed by the new tax regime - as well as sadly face
the possibility that some students will leave due to the imposition of VAT on
fees.  Fairview, through our network, prides itself on providing high quality
and premium education with affordable school fees.  This model enables us to
operate competitively even in challenging markets and our team will examine
suitable acquisition opportunities in the UK, many of which could now be
available on more attractive terms.

 

"Within our home market of Malaysia, we may see some marginal benefit as
families will be deterred from sending their children to school in the UK,
given the pending higher cost regime.  As one of the leading school groups in
Malaysia - our Kuala Lumpur school for example has been ranked as having the
best IB Diploma Programme in Malaysia for four consecutive years - we may
attract more students whose families choose to educate them locally whilst
nevertheless desiring the breadth of the International Baccalaureate
curriculum."

 

For further information, please contact:

 

 Fairview International PLC
 Daniel Chian, Chairman       fil.chair@fairview.edu.my (mailto:fil.chair@fairview.edu.my)
 Website: www.fairviewplc.uk

 Optiva Securities Limited
 Vishal Balasingham           Tel: +44 (0) 20 3137 1903

 focusIR
 Kat Perez                    Tel: +44 (0) 7881 622 830
                              kat.perez@focusIR.com

 

 

About Fairview International PLC

 

Fairview owns and operates two private independent schools in Malaysia that
offer the International Baccalaureate programme. One of these schools is
located in Kuala Lumpur, the capital of Malaysia, and the other is located in
the southern state of Johor close to the border with Singapore.  These
schools trade under the Fairview brand which was founded in 1978, and were
subsequently acquired by Agodeus Sdn Bhd, a company owned by the Chian family,
in 2012.

 

There are three other schools in Malaysia and one in the United Kingdom that
also trade under the Fairview brand, which are outside of the Company's
group.  All schools in the Fairview network are individually recognised by
the International Baccalaureate Organisation as fully accredited to offer the
IB programme across the primary and middle years; ages 5 to 16, with Fairview
Kuala Lumpur also offering the diploma programme for 16 to 19 year olds.
Each of the schools not owned by the Company use the Fairview brand under
licence from the Company accessing the resources of the Fairview Network.

 

The school in Kuala Lumpur is the largest and flagship school that uses the
Fairview brand, whilst the school in Johor focuses on the expatriate market in
Singapore and so is internationally focused.

 

The Company plans to acquire more schools which can offer international
education including the International Baccalaureate programmes both in Asia
and the UK.  The Company in particular believes there is an opportunity to
acquire underperforming private independent schools in the UK and adapt its
product offering to be authorised to offer the International Baccalaureate
programme.  With a rise in popularity of the International Baccalaureate
programme in both the independent and state sector in the UK, with a growing
acceptance of International Baccalaureate graduates by UK universities, the
Directors believe that the Company's schools will appeal particularly to the
ASEAN, China and Hong Kong market; particularly families looking for an
educational foundation in the UK prior to studying at a UK University.

 

Website

www.fairviewplc.uk (http://www.fairviewplc.uk)

 

Social media

https://x.com/fairviewplc (https://x.com/fairviewplc)

https://www.linkedin.com/company/fairview-international-plc/

https://youtu.be/88BKqYyOXFk (https://youtu.be/88BKqYyOXFk)

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