REG - Malvern Inter. PLC - Interim results
30/09/2025 07:00
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RNS Number : 3081B Malvern International PLC 30 September 2025
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.
30 September 2025
Malvern International PLC
("Malvern" or the "Group")
Interim results for the six months ended 30 June 2025
Malvern International plc (AIM: MLVN), the global learning and skills
development partner, announces its interim results for the six months ended 30
June 2025 ("H1 2025" or the "Period").
H1 2025 results
· Revenues, excluding agent commission, increased 25% to £6.36m (H1
2024: £5.10m), driven by growth in student numbers at the University of East
London (UEL).
· Underlying operating profit(1) was £0.57m (H1 2024: £0.39m);
statutory operating profit was £0.57m (H1 2024: £0.35m).
· Statutory profit after tax was £0.38m (H1 2024: profit £0.14m).
· Statutory earnings per share were 1.54p (H1 2024: 0.57p).
· Cash at 30 June 2025 was £2.48m (FY 2024: £1.39m and H1 2024:
£1.31m), the increase is due to earlier payment of Junior invoices.
· Group debt continues to reduce with £1.58m remaining at the period
end (FY 2024: £1.86m and H1 2024: £2.02m).
Strategic progress and contract awards
· Total student numbers across University Pathways centres in H1 2025
increased 30% to 1,012 (H1 2024: 777).
· Awarded two contracts for the Universities of Cumbria and
Wolverhampton, with the first cohort commencing in September and October for
the 2025/26 academic year.
· Agreed a one-year contract for the 2025/26 academic year with UEL
whilst negotiations for a longer-term contract continue.
· New five-year partnership with Liverpool Hope University announced
post-Period end, with the first students expected in January 2026.
· Junior ELT student numbers increased 2% in 2025 to 3,471 (2024:
3,405). Revenue for FY25 expected to increase 8% to circa £6.50m (H1 2024:
£6.03m); of which approximately 95% of revenues will be recognised in H2
2025.
· Continue to invest in new partnerships, people, systems, and
processes to improve the sales-to-admissions ratio and to ensure high student
attainment and course completions.
(1.) Total underlying revenues and operating profit are detailed in note 4.
Commenting on the results and prospects, Richard Mace, Chief Executive
Officer, said:
I am pleased with the progress made in growing both revenues and student
numbers, driven primarily by increased enrolments in University Pathways. We
have also made great strides in our strategy to transform Malvern into a
significantly larger business with a broader client base and diverse revenue
streams. Since the start of the year, we have secured three new university
partnership contracts enabling further growth for the 2025/26 academic year
and beyond.
The new partnerships will require forward investment over the next twelve
months so that we can reach the scale needed to contribute meaningfully to
Group profits. In the meantime we continue to build the Juniors business,
progress opportunities with other universities, negotiate a new contract with
the University of East London and evaluate our approach to Adult ELT.
Since I rejoined the business in 2020, the prospects for the business have
never been better. We now have multiple university partnerships which we
expect to materially scale over the coming years and which will transform the
underlying profitability of the Group.
For further information, please contact:
Malvern International Plc www.malverninternational.com (http://www.malverninternational.com/)
Mark Elliott - Chairman Via Zeus
Richard Mace - Chief Executive Officer
Zeus - NOMAD and Broker https://zeuscapital.co.uk/
Mike Coe / James Bavister 0203 829 5000
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 provides on-and off-campus in-sessional and pre-sessional
programmes to support international students in progressing to a wide range of
universities and undergraduate courses. Malvern assists its university
partners with international student recruitment and conversion, admissions,
fee collection, and course delivery including teaching, orientation, and
student support.
English Language Teaching is provided to adults at Malvern House Schools,
accredited by the British Council and registered in the UK, with centres in
London and Manchester. For Juniors aged 13 to 18, fully immersive residential
English language centres and customised language programmes are available at
high-quality locations.
For further investor information go to www.malverninternational.com
(http://www.malverninternational.com) .
Chief Executive's review
The Group has delivered growth in both revenues and student numbers driven
primarily by increased enrolments in University Pathways, and has reported a
small profit for the Period. In addition significant commercial progress has
been made with three new university partnership contract wins resulting in a
more diversified portfolio. These new partnerships secure the platform for
further growth for the 2025/26 academic year and beyond.
Financial review
Revenues, excluding agent commission, grew 25% to £6.36m (H1 2024: £5.10m),
driven primarily by higher student numbers in University Pathways, delivering
an underlying operating profit of £0.57m (H1 2024: £0.39m).
During the period, the Group invested £0.64m in University Pathways centres,
including the setup and launch of the new contracts awarded during the period.
Investment in staff, IT, sales and marketing will increase over the next
twelve months as it will be critical to the success of our larger portfolio.
The statutory profit after tax was £0.38m (H1 2024: £0.14m). The statutory
profit per share from operating activities was 1.54p (H1 2024: 0.57p).
Cash balances at 30 June 2025 were £2.48m (31 December 2024: £1.39m and 30
June 2024: £1.31m). The increase is due to the earlier collection of Junior
invoices.
We continue to pay down the BOOST&CO debt, with £1.58m remaining at the
period end, down from £1.86m on 31 December 2024.
Operating review
University Pathways
The number of students studying in our University Pathways programmes in H1
2025 increased to 1,012 (H1 2024: 777 students), primarily at the University
of East London (UEL), which remains one of the UK's largest International
Study Centres (ISC) and where we continue to achieve high levels of
progression, attainment and student feedback.
We secured a one-year contract to extend our partnership with UEL, providing
international student recruitment, teaching, and support services for its ISC
for the 2025/26 academic year and we continue to negotiate a new agreement.
Importantly we were delighted to add two new partners during the Period: The
University of Cumbria and the University of Wolverhampton. As expected, both
universities' propositions are being well received by international students
and our agent network and we welcomed the first cohorts at each centre this
September. Post-Period-end, we announced a five-year partnership with
Liverpool Hope University to open a new ISC in January 2026, and we expect our
first students in January.
Investment in the new university pathway partnerships will continue for at
least two academic years in order to reach target student levels and enable
them to contribute meaningfully to Group profits.
English Language Teaching (ELT)
We have delivered nine (2024: eight centres) Junior centres since the
beginning of the year, including launching the Global Futures Easter camp and
the summer academic Innovate programme. In total, we have hosted 3,471
students since January, compared to 3,405 in 2024. The division continues to
produce revenue growth which is expected to be up 8% to circa £6.50m in FY25
(2024: £6.03m), of which approximately 95% will be recognised in H2. We are
very pleased with this performance and in particular with increased student
numbers from Turkey and Latin America as a result of our increased sales and
marketing in those regions.
In the Adult ELT division, student numbers at our London Kings Cross centre
remained unchanged during the Period compared to H1 2024, while Manchester has
experienced a decline. In response to this underperformance, we implemented a
cost reduction strategy to mitigate losses.
Sales and marketing
As part of our ongoing strategy to enhance sales and marketing, we were
pleased to launch new websites for our ELT products and our corporate website,
which serves as an initial contact point for potential University
Partnerships. We continue to improve sales and marketing collateral for direct
sales and our agent network.
Student recruitment, admissions and compliance
Student recruitment is driven by our expanded international sales team and our
expertise in managing and converting a high-quality student pipeline from
across the world. In H1 2025, we embedded tighter admission and compliance
requirements to ensure we achieve low drop-out rates and university-set
progression and attainment targets. This included providing our agent network
with additional training and procedures for pre-vetting students and ensuring
all potential students are interviewed face-to-face ahead of the application
process. In parallel, our staff are focused on providing excellent teaching,
student support and pastoral care to ensure students complete their courses.
Student delivery
We have successfully recruited strong teaching and pastoral teams at both
Wolverhampton and Cumbria, ensuring that students benefit from experienced,
motivated, and highly capable staff. Alongside this, early recruitment is
already underway for the Liverpool Hope partnership, ahead of its launch in
January 2026, with an emerging team that will provide a strong platform for
delivery from the outset.
Across all sites, we have worked closely with our partners to embed processes
that support student attainment and progression. This includes reinforcing the
student-facing staff roles that provide academic guidance and pastoral
support, ensuring students are well-supported throughout their studies and
positioned for success.
Summary and outlook
We are expecting approximately 600 international students to start courses in
September and October across our international study centres, compared to 509
in September 2024.
Our strategy over the next twelve months is to invest in and rapidly scale the
new university partnerships, progress opportunities with other universities,
negotiate a new contract with UEL, continue to build the Juniors business with
more centres and specialist programmes, and explore options for Adult ELT.
With three new Pathway contracts now secured, we are excited about the Group's
revenue growth. As we reach the critical scale in student numbers with the
new partnerships, operational gearing will compound profits from the second
academic year starting in September 2026, significantly improving Group
profitability for FY 2027.
Overall, I am pleased with the progress we have made toward transforming
Malvern into a significantly larger business with a broader client base and
diverse revenue streams. While some short-term challenges remain, the
longer-term prospects for the Group have never been brighter with the new
university partnerships underpinning our growth plans.
Richard Mace
Chief Executive Officer
UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2025
30-Jun-25 (£'000) 30-Jun-24 (£'000) 31-Dec-24 (£'000)
Underlying* Non-underlying Statutory Underlying* Non-underlying Statutory Underlying* Non-underlying Statutory
Revenue
Sale of services 6,357 ― 6,357 5,098 ― 5,098 14,742 1 14,743
Agent commission income 940 ― 940 1,038 ― 1,038 1,890 ― 1,890
Total revenue 7,297 ― 7,297 6,136 ― 6,136 16,632 1 16,633
Direct costs
Cost of goods sold (1,798) ― (1,798) (1,599) 3 (1,596) (7,719) 16 (7,703)
Agent commission expenses (959) ― (959) (1,043) ― (1,043) (1,848) 20 (1,828)
Total direct costs (2,757) ― (2,757) (2,642) 3 (2,639) (9,567) 36 (9,531)
Gross profit 4,540 ― 4,540 3,494 3 3,497 7,065 37 7,102
Other income 60 ― 60 38 ― 38 136 ― 136
Administrative expenses
Other operating expenses (1,552) ― (1,552) (1,201) (10) (1,211) (2,765) (62) (2,827)
Depreciation and amortisation (161) ― (161) (158) 1 (157) (318) 1 (317)
Salaries and employee benefits (2,318) ― (2,318) (1,780) (35) (1,815) (3,894) ― (3,894)
Staff restructure payments ― ― ― ― ― ― ― (42) (42)
Share-based payments ― ― ― ― ― ― ― (5) (5)
Warrants ― ― ― ― ― ― ― 61 61
Operating profit/(loss) 569 ― 569 393 (41) 352 224 (10) 214
Finance costs (193) ― (193) (210) (3) (213) (355) (4) (359)
Profit/(loss) before tax 376 ― 376 183 (44) 139 (131) (14) (145)
Income tax credit/(charge) ― ― ― ― ― ― ― (6) (6)
Profit/(loss) for the year being total comprehensive income attributable to 376 ― 376 183 (44) 139 (131) (20) (151)
owners of the parent
Profit/(loss) per share (in pence)
30-Jun-25 (£'000) 30-Jun-24 (£'000) 31-Dec-24 (£'000)
Underlying Non-underlying Statutory Underlying Non-underlying Statutory Underlying Non-underlying Statutory
Total comprehensive income/(expense) for the year after tax 376 ― 376 183 (44) 139 (131) (14) (145)
Earnings per share 1.54 ― 1.54 0.75 (0.18) 0.57 (0.54) (0.06) (0.59)
* See note 4 for a reconciliation of
underlying.
UNAUDITED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
As at As at As at
30 June 2025 30 June 2024 31 December 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Non-current assets
Property, plant and equipment 84 66 72
Intangible asset 41 ― 16
Goodwill 1,419 1,419 1,419
Right-of-use assets 1,260 1,554 1,407
2,804 3,039 2,914
Current assets
Inventory 20 16 20
Trade receivables 2,082 1,874 792
Other receivables and prepayments 2,380 3,087 1,566
Cash and bank balances 2,484 1,311 1,391
6,966 6,288 3,769
Total assets 9,770 9,327 6,683
Non-current liabilities
Term loan 921 1,299 1,023
Warrants 354 415 354
Lease liability 1,300 1,733 1,533
Deferred tax liabilities ― (6) ―
2,575 3,441 2,910
Current liabilities
Trade payables 761 739 1,463
Contract liabilities 6,910 5,730 3,080
Other payables and accruals 1,919 1,820 1,899
Provision for income tax ― ― ―
Term loan 546 651 671
Lease liabilities 587 563 563
10,723 9,503 7,676
Total liabilities 13,298 12,944 10,586
Equity
Share capital 11,324 11,324 11,324
Share premium 6,798 6,798 6,798
Other reserve 17 12 17
Retained earnings (21,667) (21,751) (22,042)
Total equity (3,528) (3,617) (3,903)
Total equity and liabilities 9,770 9,327 6,683
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Share capital Share premium Retained earnings Other reserve Attributable to equity holders of the Company
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2024 11,324 6,798 (21,896) 12 (3,762)
Total comprehensive income for the period ― ― 139 ― 139
Deferred tax adjustments 2023 ― ― 6 ― 6
Balance as at 30 June 2024 11,324 6,798 (21,751) 12 (3,617)
New shares from share-based payments including EMI Options ― ― ― 5 5
Add: tax adjustments for prior years ― ― (2) ― (2)
Total Comprehensive income for the period ― ― (290) ― (290)
Balance at 31 December 2024 11,324 6,798 (22,043) 17 (3,904)
Total comprehensive income for the period ― ― 376 ― 376
Balance at 30 June 2025 11,324 6,798 (21,667) 17 (3,528)
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2025
Six months ended 30 June 2025 Six months ended 30 June 2024 Year ended
31 December 2024
£'000 £'000 £'000
Unaudited Unaudited Audited
Cash flows from operating activities
Profit/(loss) after tax 376 145 (151)
Deferred tax adjustment for 2023 ― (6) ―
Adjustments for:
Depreciation of tangible assets 161 157 328
Fair value movements ― ― (61)
Share-based payments ― ― 5
Loss on disposal of tangible assets ― ― ―
Impairment of trade receivables 169 (90) 159
Release of accruals adjustment for depreciation charges related to early ― 12 ―
termination
Finance cost 179 213 355
Increase in stocks ― (8) (11)
Taxation ― ― 4
Interest paid (78) (80) (141)
807 343 487
Changes in working capital
Decrease in debtors and prepayments (2,273) (3,512) (1,152)
Increase in creditors 3,146 2,822 694
Net cash generated from operating activities 1680 (347) 29
Cash flows from investing activities
Purchase of property, plant and equipment (26) (9) (28)
Investment in website design (24) ― (16)
Net cash used in investing activities (50) (9) (44)
Cash flows from financing activities
Decrease in finance lease liabilities (282) (298) (298)
Additional loan ― 22 22
New share issue ― ― ―
Term loan - net (255) (253) (515)
Net cash used in financing activities (537) (529) (791)
Net increase/(decrease) in cash and cash equivalents 1,093 (885) (806)
Cash and cash equivalents at beginning of period/year 1,391 2,196 2,197
Cash and cash equivalents at end of period/year 2,484 1,311 1,391
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED
30 JUNE 2025
1. General information
Malvern International plc (the "Group") is a public limited liability company
incorporated in England and Wales on 8 July 2004. The Group was admitted to
AIM on 10 December 2004. Its registered office is: 3rd Floor, 1 Ashley Road,
Altrincham, Cheshire, United Kingdom, WA14 2DT. The registration number of the
Group is 05174452.
The principal activities of the Group are that of investment holding and
provision of educational consultancy services. The Group provides an
educational offering that is broad and geared principally towards preparing
students to meet the demands of business and management. There have been no
significant changes in the nature of these activities during the period.
2. Significant accounting policies
Basis of preparation
The Group's unaudited interim results for the six months ended 30 June 2025
("Interim Results") are prepared in accordance with the Group's accounting
policies which are based on the recognition and measurement principles of the
UK-adopted International Accounting Standards in conformity with the
requirements of the Companies Act 2006. As permitted, the Interim Results have
been prepared in accordance with the AIM rules and not in accordance with IAS
34 "Interim financial reporting" and therefore the interim information is not
in full compliance with International Accounting Standards.
The interim condensed consolidated financial statements are prepared under the
historical cost convention as modified to include the revaluation of certain
financial instruments. The accounting policies adopted in the preparation of
the interim condensed consolidated financial statements are consistent with
those followed in the preparation of the Group's annual consolidated financial
statements for the year ended 31 December 2024 (Malvern 2024 annual report
(https://8d4250430138cef3ae46.b-cdn.net/wp-content/uploads/sites/5/2025/08/270560-Malvern-RA_2024_WEB.pdf)
). The principal accounting policies of the Group have remained unchanged from
those set out in the Group's 2024 annual report and financial statements.
The Principal Risks and Uncertainties of the Group are also set out in the
Group's 2024 annual report and financial statements and are unchanged in the
period.
The financial information for the six months ended 30 June 2025 and 30 June
2024 has not been audited and does not constitute full financial statements
within the meaning of Section 434 of the Companies Act 2006.
The Group's 2024 financial statements for the year ended 31 December 2024 were
prepared under UK-adopted International Accounting Standards. The auditor's
report on these financial statements was unqualified and did not contain
statements under Sections 498(2) or (3) of the Companies Act 2006 and they
have been filed with the Registrar of Companies. However, the auditor's report
did draw attention to a material uncertainty in relation to going concern.
3. Profit/(loss) per share
The basic profit/(loss) per share is calculated by dividing the profit/(loss)
before tax attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the relevant period. The weighted
average number of shares in issue during the period was 24,442,400 (H1 2024:
24,442,400).
4. Reconciliation of Statutory information to underlying information
Underlying information is provided because the Directors consider that it
provides assistance in understanding the Group's underlying performance.
The following table includes details of non-underlying items and reconciles
statutory information to underlying information:
Total revenues(1) Direct Gross Indirect costs & other income Finance costs Profit before tax
costs profit
June 2025 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Underlying results 7,297 (2,757) 4,540 (3,971) (193) 376
Malvern House Brighton ((a)) ― ― ― ― ― ―
Staff restructuring costs ((b)) ― ― ― ― ― ―
Malaysia liquidation ((c)) ― ― ― ― ― ―
Statutory results 7,297 (2,757) 4,540 (3,971) (193) 376
Total revenues(1) Direct Gross Indirect costs & other income Finance costs Profit before tax
costs profit
June 2024 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Underlying results 6,136 (2,642) 3,494 (3,101) (210) 183
Malvern House Brighton ((a)) ― 3 3 (6) (3) (12)
Staff restructuring costs ((b)) ― ― ― (35) ― (35)
Malaysia liquidation ((c)) ― ― ― (3) ― (3)
Statutory results 6,136 (2,639) 3,497 (3,145) (213) 139
Total revenue(1) Direct costs Gross profit Indirect costs & other income Finance costs (Loss)/ profit before tax
December 2024 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000
Underlying results 16,632 (9,567) 7,065 (6,841) (355) (131)
Malvern House Brighton ((a)) 1 36 37 (61) (4) (28)
Share-based payments ((d)) ― ― ― (5) ― (5)
Warrants ((e)) ― ― ― 61 ― 61
Staff restructuring costs ((b)) ― ― ― (42) ― (42)
Statutory results 16,633 (9,531) 7,102 (6,888) (359) (145)
(1) Includes agent commission income.
a. Malvern House Brighton
During 2023 the Directors of the Group announced its decision to close Malvern
House Brighton. The decision was made following a review of the viability of
the school, informed by current operations, overhead costs, projected student
numbers, financial performance and the further investment required for the
school to achieve profitability which it had yet to do.
b. Staff restructuring costs
In 2023 and 2024 the management of the Group undertook a staff review to
ensure that the Group uses its resources as efficiently as possible.
c. Malaysia liquidation and loan write-back
Minor liquidator costs to close out the remaining issues from the Group's
former Malaysian entity.
d. Share-based payments
The Group has an Enterprise Management Incentive share option scheme for
certain directors and employees. Under the scheme, participants have been
awarded options to acquire up to a prescribed level of shares.
e. Warrants
As part of the term loan, BOOST&Co. was issued warrants over 1,725,113
shares. These warrants are exercisable at the Strike Price at any time over
the following 10 years since the inception of term loan in August 2019. The
warrants are revalued at fair value annually, any movement is expensed in the
Consolidated Statement of Comprehensive Income. During the period, the
warrants were transferred from BOOST&Co. to shareholder 8 KPG Limited. The
Group was not involved in this private transaction.
- ENDS -
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