REG - Malvern Inter. PLC - Trading Update

Malvern InternationalAnnouncement

24/08/2023 07:00

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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.£4.8m in H1 2023 compared to £2.3m in H1
2022. The Group is expected to announce a return to profit for the first half
of the year (H1 2022: Loss £0.7m). 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.£3.7m (2022: c.£1.4m).
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
£2.6m and cash balances were £2.1m, 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 (http://www.malverninternational.com/)
 Mark Elliott - Chairman                   Via our website
 Richard Mace - Chief Executive Officer
 WH Ireland (NOMAD & Broker)               www.whirelandcb.com (http://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
(http://www.malverninternational.com/)

 

 

 

 

 

 

 

 

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