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.
27
August 2024
MALVERN INTERNATIONAL PLC
("Malvern", or the "Company")
Trading update
Growth in student numbers and revenues
supporting ongoing business transformation
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 2024 ("H1 2024") ahead of its interim results
to be announced in September 2024.
Highlights
Subject to review, the Company currently expects to
report performance in H1 2024 as follows:
· c.22%
increase in underlying revenues, excluding agent commission, to
£5.10m (H1 2023: £4.18m);
·
underlying operating profit of £0.40m (H1 2023: underlying profit
£0.50m);
·
encouraging profit and revenue growth in the University Pathways
division, following strong student recruitment for the 2023/24
academic year;
·
significant growth in the Juniors division, the Group expects
revenue of c.£6m, the bulk of which will be recognised in H2 2024;
and
· English
language centres experienced modest growth in a challenging
market.
Group profit in H1 2024 was flat versus the prior
year. After successfully completing the leap from a loss-making
operation to a profitable business in 2023, management has ramped
up strategic investment in people, travel and marketing activities
in 2024. This spend is targeted at accelerating revenue and profit
growth and business development across all divisions. Return
on this investment will be seen from 2025 onwards. Further details
will be outlined in the interim accounts in September 2024.
The Company paid down £0.22m of the BOOST&CO debt
in H1 2024. This debt stood at £2.02m as at 30 June 2024 down from
£2.24m as at 31 December 2023.
Forward bookings and
outlook
University
Pathways
Approximately 475 students will start courses in
September 2024 at the Group's University of East London
("UEL") International Student Centre,
compared to 450 students in 2023. This solidifies the Group's
partnership with UEL as one of the UK's
largest and most successful University Pathway
centres.
In addition, a cohort of 10 to 15 NCUK students will
start University Pathway courses in September 2024. This result
follows investment in the sales team, which has been developing
relationships with universities and building the Group's agent
network.
The investment in business development has resulted
in discussions with several potential new university partnerships.
Some of these discussions are at an advanced stage. The
opportunities offer different models, including providing a
comprehensive Pathway programme and exclusive direct recruitment
contracts. These initiatives are with universities in the UK and
the US. Additionally, discussions regarding a renewed
contract remain ongoing with UEL, and the Board anticipates an
update on this before the end of the year.
Juniors
The Company delivered programmes to c.3,300 students
in July and August 2024 (2023: 2,478 students), generating revenues
of c.£6.0m (2023: £3.7m), with 95% of the revenue to be recognised
in H2 2024. Pleasingly, in addition to growing the student numbers
in 2024, the Company is also making progress on its strategic aim
of diversifying the student nationality mix. While the number of
Italian students grew significantly in 2024, the proportion of
Italian students has reduced to c.65%, down from 95% in 2023.
Following the Company's investment in China / East Asia, it is
pleasing that we experienced growth in student numbers from both
China and Taiwan in 2024. MENA, a region of strength for the
Company, also produced encouraging growth. The Group plans to
launch Junior Easter programmes in 2025 which will support
continued growth and provide the Group with a better income profile
throughout the year.
English language
teaching ("ELT")
Building on solid growth last year, student numbers
saw a modest uplift in H1 2024. The Adult ELT industry is still
recovering at around 80% of its 2019 student weeks. To increase the
Company's market share, it has recruited new sales staff to cover
Europe, Spanish LATAM, and the Far East. Given the long ELT
recruitment cycle, this investment will not produce significant
revenue until 2025.
Richard Mace, Chief
Executive Officer, said:
"Our performance in
H1 2024 is the result of investment across all areas of the
business over the last three years. This process is ongoing, and we
are currently undergoing a transition period where top-line revenue
growth is supporting investment in our sales and marketing,
teaching, and back-office functions to accelerate growth in
2025. In the meantime, we continue to pay down the
Company's debt, which is expected to reduce to around
£1.80m by year end."
For further
information please contact:
|
|
Malvern International Plc
|
www.malverninternational.com
|
Mark Elliott - Chairman
|
Via our website
|
Richard Mace - Chief Executive
Officer
|
|
Zeus Capital (NOMAD &
Broker)
|
|
Mike Coe / Sarah Mather
|
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 - on and
off-campus university pathway programmes helping students progress
to a range of universities, as well as in-sessional and
pre-sessional courses.
English Language Schools - British
Council accredited English Language Training at English UK
registered schools in London and Manchester.
Language in Action juniors and summer camps
("Juniors") - 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.