TIDMMLVN
RNS Number : 9923K
Malvern International PLC
08 January 2021
8 January 2021
MALVERN INTERNATIONAL PLC
("Malvern" or the "Company")
New Short-term Loan Facility
Director Loan Note
Trading and Covid Update and New Accreditation
Malvern International plc (AIM: MLVN), the global learning and
skills development partner, announces that it has entered into a
new short term loan agreement for GBP350,000 (the "New Loan" or
"Loan") with Boost & Co. Ltd ("Boost" or the "Lender"), and
that it has secured a further GBP30,000 via a unsecured loan note
with a Director.
The purpose of this new borrowing is to provide bridging finance
to ensure the Company has sufficient working capital pending the
payment of a significant trade debtor amounting to in excess of
GBP900,000 which is expected to be paid in quarter one 2021.
New Short-term Loan Facility
The New Loan for GBP350,000 will be drawn in full immediately.
Interest on the amounts drawn down will be charged at 11.25% per
annum.
In the event that the New Loan is not repaid in full on 30 April
2021, the Lender is entitled to 18,500,000 warrants over 18,500,000
ordinary shares at an exercise price of 0.15 pence per share.
An arrangement fee of 1.5% is payable on the New Loan on the
signing of the loan agreement.
The amounts drawn down are secured alongside the existing
lending from Boost by way of debentures constituting the first
fixed and floating charges over the Group's assets in the UK,
including fixed charge security over the shares held in each
English subsidiary of the Company.
Director Loan Note
As a condition of the New Loan, Richard Mace, Chief Executive of
the Company, has agreed to lend the Company GBP30,000 by way of an
unsecured loan. The loan is repayable on or before 30 April 2021
and attracts interest at 5.0% per annum.
Trading and Covid Update
In line with the government guidance all schools will be closed
from 5th January to 14th February.
University Pathway student numbers for the September intake
ended up in line with budget with 121 students. It had been hoped
that the intake would be ahead of expectations but there was a
slight attrition as some of the students decided not to travel due
to COVID restrictions, and changing rules with international
travel. However, the numbers represent significant growth from
previous year's intake and are in line with university
expectations. The January 2021 intake is going ahead, starting on
11(th) January and will be delivered using blended learning, with
all teaching being online initially. We are awaiting the advice
from the university about the ongoing use of blended learning for
the rest of the academic year.
Language student bookings had been rebuilding in H2 of 2020.
Following the latest government COVID restrictions, we are
contacting existing language students who are already in the UK to
support them in a smooth transition to online study via Malvern
Online Academy.
Middle East embassy students that haven not arrived in UK
already have permission from embassies to start their studies
online and will travel to the UK when they feel safe to do so. The
indication from our overseas sales agencies is that students who
have not already commenced courses will arrive later, delaying
their start until late Spring.
NCUK
In December Malvern was successful with its application to
become a NCUK accredited delivery centre from their London Kings
Cross centre. NCUK is a consortium of leading universities
dedicated to giving international students guaranteed access to
universities worldwide.
From September 2021 Malvern will accept international and EU
students on their nine month NCUK International foundation
programme. The programme is designed to prepare international
students for undergraduate study at a UK university. On completion
of the course, students have guaranteed progression options to over
20 leading partner universities in the UK, as well as established
universities in USA, Canada, Australia and New Zealand.
The NCUK partnership will add to additional revenue streams that
are likely to grow in 2022 and beyond as student numbers increase.
The programmes will help attract a wider diversity of students from
key recruitment markets. As part of the group strategy, we see this
academic foundation programmes as an area of growth.
Management recruitment
A few experienced senior managers have been recruited and will
join the business in Q1 to support product development and
implement growth plans.
Outlook
Overall demand for our education products remains largely
unaffected. Further growth in the University Pathway division is
predicted for September 2021 and we are currently expecting the
Summer programmes to go ahead for language centres and Malvern
Juniors.
We therefore remain positive about the long-term outlook for the
Company, and we are expecting business to resume to normal levels
once the vaccine rollout has been administered to key groups.
Commenting on the loan, Mark Elliott, Chairman at Malvern,
said:
"We have been working closely with Boost and are pleased to have
been able to quickly and easily agree this additional short-term
support with them.
I would like at this time to also express the Board's gratitude
to all in Malvern who are managing the challenges exceptionally
well during this prolonged period of uncertainty. We continue to
build a strong team and a business that we believe will not only
survive, but thrive once a greater degree of normality
returns."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
For further information please
contact:
Malvern International Plc www.malverninternational.com
Mark Elliott - Chairman Via Communications Portfolio
Richard Mace - Chief Executive
Officer
WH Ireland (NOMAD & Broker) www.whirelandcb.com
Mike Coe / Chris Savidge 0207 220 1666
Media enquiries
Communications Portfolio ariane.comstive@communications-portfolio.co.uk
Ariane Comstive +44 7785 922 354
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