Malvern International PLC Trading Update (1620B)
08 January 2018 - 6:00PM
UK Regulatory
TIDMMLVN
RNS Number : 1620B
Malvern International PLC
08 January 2018
8 January 2018
MALVERN INTERNATIONAL PLC
("Malvern" or the "Company")
Trading Update
Malvern International plc (AIM: MLVN), provider of educational
services in the UK, Europe and Asia, is pleased to provide the
trading update for its financial year ended 31 December 2017.
-- Turnover for the second half of the year is expected to be
more than GBP2.4 million (H2 2016: GBP1.9 million), up over 25% on
the equivalent period last year.
-- The losses for the second half of the year are expected to be
reduced to GBP0.2 million (H2 2016: losses of GBP0.9 million).
-- The annual turnover for 2017 is expected to be slightly
higher than 2016 at around GBP4 million, with significant reduction
in losses before tax to approximately GBP0.6 million (2016: GBP1.3
million).
-- Students numbers are running ahead of last year.
-- The school in London has been leading the progress with
record sales and is expected to break even for the year.
-- The newly acquired school in Singapore is progressing well,
already attracting market attention and seeing an improvement in
sales.
-- Significant growth is expected in 2018 with higher student
numbers anticipated in both the UK and Singapore.
-- Attractive and profitable new acquisitions are being
considered in the UK, Singapore and New Zealand - to be progressed
in 2018.
-- New initiatives in relation to online products are expected
to be introduced to the market from January 2018.
The outcome for the second half of 2017 will demonstrate
significant growth in turnover from the first half of the year and
also in comparison to the same period in 2016. The increase in
revenue in the second half compared to last year is mostly
attributable to the significant improvement in London's performance
where turnover is up around 80% year-on-year.
The losses in the second half are expected to have narrowed
further to GBP0.2 million (H2 2016: loss GBP0.9 million). This is
despite incurring costs on changing the Group's organisational
shape and investing and working on a number of new commercial
initiatives.
Outlook
The Company will enter its new financial year with its various
divisions well placed for further growth. Steady growth is expected
in Malaysia. London is expected to continue with its improved
performance and build upon its achievement from this year.
In Singapore, Malvern is expecting to experience significant
growth in Singapore through the combination of the acquisition of
SAA-GE and growth in Malvern's existing Singapore business. Malvern
is delighted with the progress made in relation to its newly
acquired school in Singapore, SAA Global Education (SAA-GE -
www.saage.edu.sg) where the leadership team at Malvern and SAA-GE
has spent the last two months strengthening SAA-GE's relationship
with its stakeholders and education partners while making
improvement and heightening efficiencies in the areas of
operations, quality assurance and marketing.
Overall, the Group's traditional school offerings will be
complemented in 2018 with the online products that have been
developed through 2017. The first mobile games designed to help
students to learn English (English is Fun - co-branded with Oxford
University Press) are expected to be offered to the market by March
2018. The online and digital division of the Group is currently
working on other products that will be introduced to the market
from early 2018.
Malvern believes 2018 will be an exciting year for the Group
with the potential for both organic and acquisitive growth.
Gopinath Pillai, Chairman, stated:
"2017 as a whole, and in particular the second half, has seen
improvement in the Group's performance and an upward trajectory is
now discernible. This has been due to three main factors. First, a
stronger management has been in place which will be strengthened
further as we go forward. Secondly, the agent network has been
reorganised successfully. Thirdly, our offerings now cover a wider
range of products. In addition to these factors, I am optimistic
that the first major acquisition which we completed in November
2017 will have a significantly positive impact not only on the
operations of Singapore but also for our global platform."
This announcement includes inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations
Contacts:
Malvern International www.malverninternational.com
plc
Haider Sithawalla +65 64120733
Dr Sam Malafeh +65 83860155
WH Ireland Limited www.whirelandcb.com
Mike Coe, Ed Allsopp +44 (0) 117 945 3470
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTFKADDOBKDQDK
(END) Dow Jones Newswires
January 08, 2018 02:00 ET (07:00 GMT)
Malvern (LSE:MLVN)
Historical Stock Chart
From Apr 2024 to May 2024
Malvern (LSE:MLVN)
Historical Stock Chart
From May 2023 to May 2024