TIDMMLVN
RNS Number : 3747P
Malvern International PLC
09 February 2023
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the Company's obligations under Article 17 of MAR.
9 February 2023
MALVERN INTERNATIONAL PLC
("Malvern", the "Company" or the "Group")
Trading update
Malvern International plc (AIM: MLVN), the global learning and
skills development partner, is pleased to provide a trading update
in respect of its year ended 31 December 2022 ("FY22"), and current
trading.
FY22
The preliminary unaudited assessment of the Group's trading for
the full year indicates that revenues have increased 170% to circa
GBP6.5 million (FY21: GBP2.4 million) that the loss before tax for
the year will be significantly reduced at circa GBP1.1 million
(FY21: GBP1.6 million, pre-adjustment for Singapore disposal).
Unaudited net debt as at 31 December was GBP4.4 million (FY21:
GBP5.8 million) including lease liabilities of GBP3.1m. This is
approximately GBP0.7 million better than management were expecting
due to the late invoicing to the company of summer accommodation
costs for Juniors.
H2 saw significant growth compared with H1 2022 and H2 2021
which were both impacted by Covid-19 and limitations on
international travel. As borders opened and travel restrictions
relaxed, we saw a return to pre-pandemic levels of student numbers
in our adult language schools and our first cohorts of junior
students since 2019. This resulted in growth in H2 revenue year on
year from GBP1.0m in FY21 to cGBP4.2m in FY22.
Adult ELT revenue increased c150% to cGBP3.1m, mainly coming
from the MENA and Latin America markets. This was helped by the
Government's announcement in early May 2022 that Saudi Arabia
nationals can apply to travel to the UK for tourism, business,
study or medical treatment for up to six months with an electronic
visa waiver from 1 June 2022. This was also supported by all our
schools being approved by the Kuwait Cultural Office ("KCO") in
December 2021 and students from this region traveling again.
Juniors ran for the first time since 2019 with cGBP1.4m in
revenue. The bulk of the students coming from Italy.
University Pathway revenue continued to grow up c50% year on
year to cGBP2.0m with a big increase in students from South
Asia.
Current trading and outlook
University Pathways
January's student intake for University Pathways are up over
200% on last year's intake with c.245 students enrolled (January
2022:80, January 2021:45), significantly ahead of management's
expectations. Of the c245 students have enrolled, c230 of the
students are studying at University of East London. In addition, we
currently have c475 students enrolled in University Pathways
courses for the 2022-23 academic year, up 230% on the 2021-22
academic year compared which had 144 students.
The growth in the university student numbers bears strong
testimony to the strategic investment by the Group over the last
two years in sales and marketing, management team and collaborative
processes within our University Partnerships structure.
English Learning Training ("ELT") and Juniors
The Board is confident for the outlook for ELT in 2023 and
beyond. Malvern is currently working with the biggest agencies in
Brazil, Saudi Arabia, Kuwait and Italy. The pipeline of bookings is
strong and our focus for the Q1 2023 is to capitalise on the
Group's momentum, to continue to foster good relations and build
Malvern's agent network across other key regions.
As part of our recruitment strategy, we have continued to build
our sales and marketing capability. In China, the biggest
international student market to the UK for Higher Education and
Junior summer camps. To this end we have recently appointed an
experienced East Asia Director to oversee our development in that
region. The timing of this is significant with the China market
predicted to open again in 2023.
Junior summer camps successfully returned at the end of H1 2022
for the first time since 2019. There remains a clear back-log of
demand based on pre-bookings, consequently we expect the student
numbers and revenues to grow in 2023.
Mark Elliott, Chairman, said: " The team has worked hard to grow
University Pathway student numbers in 2022. January's intake
represents a great start to 2023 and strengthens our revenue
visibility for H1 2023 which we expect to be significantly ahead of
H1 2022, with a combination of pre-booked income from the
University Pathway courses and no COVID-19 restrictions affecting
students' ability to travel. The Board is increasingly confident
for Malvern's prospects and expects it achieve growth in all
divisions in 2023."
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.whirelandcm.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.
Malvern Online Academy - British Council accredited online
school, offering supported tuition to students from around the
world in English language, higher education, and professional
education.
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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