Malvern reports post-Covid bounce-back across programmes

The AIM-traded firm said its operating loss narrowed to £0.78m, from £1.32m in 2021, which it put down to an improvement to ongoing investment in sales and marketing and central operations, combined with strong cost control measures.

Its loss for the year totalled £1.08m, narrowing from £1.59m in 2021, and its loss per share totalled 4.95p, compared to 8.49p year-on-year.

Cash balances increased £0.81m during the year to reach £1.18m by 31 December, reflecting a cash inflow of £1.32m, compared to a cash outflow of £1.19m in 2021.

Net debt was £4.38m at year-end, including £3.08m of lease liabilities, compared to £5.85m in 2021.

On the operational front, Malvern International said it enrolled 500 University Pathway students for the 2022-2023 academic year, more than three times the number of students from the prior period.

The firm’s revenues in English Language Training centres also bounced back during the summer months, to surpass pre-pandemic levels.

Additionally, Malvern continued to strengthen its relationship with the University of East London, with a five-year partnership aimed at rapidly increasing the volume of Chinese student enrolments.

The company strengthened its senior management team during the year, with promotions and appointments of a director of university partnerships, director of student recruitment, commercial director of English Language Training, head of operations, and a group human resources manager.

Malvern International also appointed an experienced east Asia director to manage and grow its agent network across China.

Finally, the company relaunched its junior programmes in the summer of 2022, enrolling 976 students after two years of no activity.

“Student numbers continued to rebuild throughout 2022 as limitations on international travel eased,” said chief executive officer Richard Mace.

“English Language Training bounced back in 2022 with three centres posting revenues ahead of the pre-pandemic period during the busy summer months.

“Our University Pathways saw a three-fold increase in student numbers for the 2022-2023 academic year start, contributing significantly to our overall University Pathways population of 500 students and giving a strong indication of the potential of this division.”

Mace said juniors delivered programmes to 976 students, generating revenues of £1.35m after two years of no activity.

“Our forward bookings and revenue visibility for the start of 2023, combined with the removal of all Covid-19 restrictions, gives us confidence in Malvern's near and longer term prospects.

“We expect to move towards profitable growth in all divisions in 2023.”

At 1433 BST, shares in Malvern International were up 4.8% at 13.1p.

Reporting by Josh White for Sharecast.com.