30 sep 25   malvern inter. plc - interim results malvern international plc | mlvn | 17.5 1.0 6.1% | mkt cap: 4.28m    rns number : 3081b malvern international plc 30 september 2025   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.             30 september 2025   malvern international plc ("malvern" or the "group")   interim results for the six months ended 30 june 2025   malvern international plc (aim: mlvn), the global learning and skills development partner, announces its interim results for the six months ended 30 june 2025 ("h1 2025" or the "period"). h1 2025 results ·    revenues, excluding agent commission, increased 25% to £6.36m (h1 2024: £5.10m), driven by growth in student numbers at the university of east london (uel). ·    underlying operating profit1 was £0.57m (h1 2024: £0.39m); statutory operating profit was £0.57m (h1 2024: £0.35m). ·    statutory profit after tax was £0.38m (h1 2024: profit £0.14m). ·    statutory earnings per share were 1.54p (h1 2024: 0.57p). ·    cash at 30 june 2025 was £2.48m (fy 2024: £1.39m and h1 2024: £1.31m), the increase is due to earlier payment of junior invoices. ·    group debt continues to reduce with £1.58m remaining at the period end (fy 2024: £1.86m and h1 2024: £2.02m).   strategic progress and contract awards ·    total student numbers across university pathways centres in h1 2025 increased 30% to 1,012 (h1 2024: 777). ·    awarded two contracts for the universities of cumbria and wolverhampton, with the first cohort commencing in september and october for the 2025/26 academic year. ·    agreed a one-year contract for the 2025/26 academic year with uel whilst negotiations for a longer-term contract continue. ·    new five-year partnership with liverpool hope university announced post-period end, with the first students expected in january 2026.  ·    junior elt student numbers increased 2% in 2025 to 3,471 (2024: 3,405). revenue for fy25 expected to increase 8% to circa £6.50m (h1 2024: £6.03m); of which approximately 95% of revenues will be recognised in h2 2025. ·    continue to invest in new partnerships, people, systems, and processes to improve the sales-to-admissions ratio and to ensure high student attainment and course completions.  1. total underlying revenues and operating profit are detailed in note 4.   commenting on the results and prospects, richard mace, chief executive officer, said: i am pleased with the progress made in growing both revenues and student numbers, driven primarily by increased enrolments in university pathways. we have also made great strides in our strategy to transform malvern into a significantly larger business with a broader client base and diverse revenue streams.  since the start of the year, we have secured three new university partnership contracts enabling further growth for the 2025/26 academic year and beyond.  the new partnerships will require forward investment over the next twelve months so that we can reach the scale needed to contribute meaningfully to group profits. in the meantime we continue to build the juniors business, progress opportunities with other universities, negotiate a new contract with the university of east london and evaluate our approach to adult elt. since i rejoined the business in 2020, the prospects for the business have never been better.  we now have multiple university partnerships which we expect to materially scale over the coming years and which will transform the underlying profitability of the group.   for further information, please contact:   malvern international plc mark elliott - chairman richard mace - chief executive officer www.malverninternational.com via zeus zeus - nomad and broker mike coe / james bavister https://zeuscapital.co.uk/ 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 provides on-and off-campus in-sessional and pre-sessional programmes to support international students in progressing to a wide range of universities and undergraduate courses. malvern assists its university partners with international student recruitment and conversion, admissions, fee collection, and course delivery including teaching, orientation, and student support. english language teaching is provided to adults at malvern house schools, accredited by the british council and registered in the uk, with centres in london and manchester. for juniors aged 13 to 18, fully immersive residential english language centres and customised language programmes are available at high-quality locations. for further investor information go to www.malverninternational.com.     chief executive's review the group has delivered growth in both revenues and student numbers driven primarily by increased enrolments in university pathways, and has reported a small profit for the period. in addition significant commercial progress has been made with three new university partnership contract wins resulting in a more diversified portfolio. these new partnerships secure the platform for further growth for the 2025/26 academic year and beyond.  financial review revenues, excluding agent commission, grew 25% to £6.36m (h1 2024: £5.10m), driven primarily by higher student numbers in university pathways, delivering an underlying operating profit of £0.57m (h1 2024: £0.39m). during the period, the group invested £0.64m in university pathways centres, including the setup and launch of the new contracts awarded during the period.  investment in staff, it, sales and marketing will increase over the next twelve months as it will be critical to the success of our larger portfolio. the statutory profit after tax was £0.38m (h1 2024: £0.14m). the statutory profit per share from operating activities was 1.54p (h1 2024: 0.57p). cash balances at 30 june 2025 were £2.48m (31 december 2024: £1.39m and 30 june 2024: £1.31m). the increase is due to the earlier collection of junior invoices.   we continue to pay down the boost&co debt, with £1.58m remaining at the period end, down from £1.86m on 31 december 2024. operating review university pathways the number of students studying in our university pathways programmes in h1 2025 increased to 1,012 (h1 2024: 777 students), primarily at the university of east london (uel), which remains one of the uk's largest international study centres (isc) and where we continue to achieve high levels of progression, attainment and student feedback.  we secured a one-year contract to extend our partnership with uel, providing international student recruitment, teaching, and support services for its isc for the 2025/26 academic year and we continue to negotiate a new agreement. importantly we were delighted to add two new partners during the period: the university of cumbria and the university of wolverhampton. as expected, both universities' propositions are being well received by international students and our agent network and we welcomed the first cohorts at each centre this september. post-period-end, we announced a five-year partnership with liverpool hope university to open a new isc in january 2026, and we expect our first students in january. investment in the new university pathway partnerships will continue for at least two academic years in order to reach target student levels and enable them to contribute meaningfully to group profits.   english language teaching (elt) we have delivered nine (2024: eight centres) junior centres since the beginning of the year, including launching the global futures easter camp and the summer academic innovate programme. in total, we have hosted 3,471 students since january, compared to 3,405 in 2024. the division continues to produce revenue growth which is expected to be up 8% to circa £6.50m in fy25 (2024: £6.03m), of which approximately 95% will be recognised in h2. we are very pleased with this performance  and in particular with increased student numbers from turkey and latin america as a result of our increased sales and marketing in those regions. in the adult elt division, student numbers at our london kings cross centre remained unchanged during the period compared to h1 2024, while manchester has experienced a decline. in response to this underperformance, we implemented a cost reduction strategy to mitigate losses. sales and marketing as part of our ongoing strategy to enhance sales and marketing, we were pleased to launch new websites for our elt products and our corporate website, which serves as an initial contact point for potential university partnerships. we continue to improve sales and marketing collateral for direct sales and our agent network. student recruitment, admissions and compliance student recruitment is driven by our expanded international sales team and our expertise in managing and converting a high-quality student pipeline from across the world. in h1 2025, we embedded tighter admission and compliance requirements to ensure we achieve low drop-out rates and university-set progression and attainment targets. this included providing our agent network with additional training and procedures for pre-vetting students and ensuring all potential students are interviewed face-to-face ahead of the application process. in parallel, our staff are focused on providing excellent teaching, student support and pastoral care to ensure students complete their courses.   student delivery we have successfully recruited strong teaching and pastoral teams at both wolverhampton and cumbria, ensuring that students benefit from experienced, motivated, and highly capable staff. alongside this, early recruitment is already underway for the liverpool hope partnership, ahead of its launch in january 2026, with an emerging team that will provide a strong platform for delivery from the outset. across all sites, we have worked closely with our partners to embed processes that support student attainment and progression. this includes reinforcing the student-facing staff roles that provide academic guidance and pastoral support, ensuring students are well-supported throughout their studies and positioned for success. summary and outlook we are expecting approximately 600 international students to start courses in september and october across our international study centres, compared to 509 in september 2024. our strategy over the next twelve months is to invest in and rapidly scale the new university partnerships, progress opportunities with other universities, negotiate a new contract with uel, continue to build the juniors business with more centres and specialist programmes, and explore options for adult elt. with three new pathway contracts now secured, we are excited about the group's revenue growth.  as we reach the critical scale in student numbers with the new partnerships, operational gearing will compound profits from the second academic year starting in september 2026, significantly improving group profitability for fy 2027. overall, i am pleased with the progress we have made toward transforming malvern into a significantly larger business with a broader client base and diverse revenue streams. while some short-term challenges remain, the longer-term prospects for the group have never been brighter with the new university partnerships underpinning our growth plans.         richard mace chief executive officer                 unaudited consolidated statement of comprehensive income for the six months ended 30 june 2025   30-jun-25 (£'000) 30-jun-24 (£'000) 31-dec-24 (£'000)    underlying*  non-underlying  statutory  underlying*  non-underlying  statutory  underlying*  non-underlying  statutory revenue                   sale of services 6,357 ― 6,357 5,098 ― 5,098 14,742 1 14,743 agent commission income 940 ― 940 1,038 ― 1,038 1,890 ― 1,890 total revenue 7,297 ― 7,297 6,136 ― 6,136 16,632 1 16,633 direct costs                   cost of goods sold (1,798) ― (1,798) (1,599) 3 (1,596) (7,719) 16 (7,703) agent commission expenses (959) ― (959) (1,043) ― (1,043) (1,848) 20 (1,828) total direct costs (2,757) ― (2,757) (2,642) 3 (2,639) (9,567) 36 (9,531) gross profit 4,540 ― 4,540 3,494 3 3,497 7,065 37 7,102 other income 60 ― 60 38 ― 38 136 ― 136 administrative expenses                   other operating expenses (1,552) ― (1,552) (1,201) (10) (1,211) (2,765) (62) (2,827) depreciation and amortisation (161) ― (161) (158) 1 (157) (318) 1 (317) salaries and employee benefits (2,318) ― (2,318) (1,780) (35) (1,815) (3,894) ― (3,894) staff restructure payments ― ― ― ― ― ― ― (42) (42) share-based payments ― ― ― ― ― ― ― (5) (5) warrants ― ― ― ― ― ― ― 61 61 operating profit/(loss) 569 ― 569 393 (41) 352 224 (10) 214 finance costs (193) ― (193) (210) (3) (213) (355) (4) (359) profit/(loss) before tax 376 ― 376 183 (44) 139 (131) (14) (145) income tax credit/(charge) ― ― ― ― ― ― ― (6) (6) profit/(loss) for the year being total comprehensive income attributable to owners of the parent 376 ― 376 183 (44) 139 (131) (20) (151)        profit/(loss) per share (in pence)   30-jun-25 (£'000) 30-jun-24 (£'000) 31-dec-24 (£'000)   underlying non-underlying statutory underlying non-underlying statutory underlying non-underlying statutory total comprehensive income/(expense) for the year after tax 376 ― 376 183 (44) 139 (131) (14) (145) earnings per share 1.54 ― 1.54 0.75 (0.18) 0.57 (0.54) (0.06) (0.59)     * see note 4 for a reconciliation of underlying.                      unaudited statement of financial position as at 30 june 2025   as at 30 june 2025 as at 30 june 2024 as at 31 december 2024   £'000 £'000 £'000   unaudited unaudited audited non-current assets       property, plant and equipment 84 66 72 intangible asset 41 ― 16 goodwill 1,419 1,419 1,419 right-of-use assets 1,260 1,554 1,407   2,804 3,039 2,914 current assets       inventory  20  16 20 trade receivables 2,082 1,874  792 other receivables and prepayments  2,380  3,087  1,566 cash and bank balances 2,484 1,311 1,391   6,966 6,288 3,769 total assets 9,770 9,327 6,683         non-current liabilities       term loan 921 1,299 1,023 warrants 354 415 354 lease liability 1,300 1,733 1,533 deferred tax liabilities ― (6) ―   2,575 3,441 2,910 current liabilities       trade payables 761 739 1,463 contract liabilities 6,910 5,730 3,080 other payables and accruals 1,919 1,820 1,899 provision for income tax ― ― ― term loan 546 651 671 lease liabilities 587 563 563   10,723 9,503 7,676 total liabilities 13,298 12,944 10,586         equity       share capital 11,324 11,324 11,324 share premium 6,798 6,798 6,798 other reserve 17 12 17 retained earnings (21,667) (21,751) (22,042) total equity (3,528) (3,617) (3,903) total equity and liabilities 9,770 9,327 6,683   unaudited consolidated statement of changes in equity for the six months ended 30 june 2025  share capital share premium retained earnings other reserve attributable to equity holders of the company  £'000 £'000 £'000 £'000 £'000 balance at 1 january 2024 11,324 6,798 (21,896) 12 (3,762) total comprehensive income for the period ― ― 139 ― 139 deferred tax adjustments 2023 ― ― 6 ― 6 balance as at 30 june 2024 11,324 6,798 (21,751) 12 (3,617) new shares from share-based payments including emi options ― ― ― 5 5 add: tax adjustments for prior years ― ― (2) ― (2) total comprehensive income for the period ― ― (290) ― (290) balance at 31 december 2024 11,324 6,798 (22,043) 17 (3,904) total comprehensive income for the period ― ― 376 ― 376 balance at 30 june 2025 11,324 6,798 (21,667) 17 (3,528)   unaudited consolidated statement of cash flows for the six months ended 30 june 2025   six months ended 30 june 2025 six months ended 30 june 2024 year ended 31 december 2024   £'000 £'000 £'000   unaudited unaudited audited cash flows from operating activities       profit/(loss) after tax 376 145 (151) deferred tax adjustment for 2023 ― (6) ― adjustments for:       depreciation of tangible assets 161 157 328 fair value movements ― ― (61) share-based payments ― ― 5 loss on disposal of tangible assets ― ― ― impairment of trade receivables 169 (90) 159 release of accruals adjustment for depreciation charges related to early termination ― 12 ― finance cost 179 213 355 increase in stocks ― (8) (11) taxation ― ― 4 interest paid (78) (80) (141)   807 343 487 changes in working capital       decrease in debtors and prepayments (2,273) (3,512) (1,152) increase in creditors 3,146 2,822 694 net cash generated from operating activities 1680 (347) 29 cash flows from investing activities       purchase of property, plant and equipment (26) (9) (28) investment in website design (24) ― (16) net cash used in investing activities (50) (9) (44) cash flows from financing activities       decrease in finance lease liabilities (282) (298) (298) additional loan ― 22 22 new share issue ― ― ― term loan - net (255) (253) (515) net cash used in financing activities (537) (529) (791) net increase/(decrease) in cash and cash equivalents 1,093 (885) (806) cash and cash equivalents at beginning of period/year 1,391 2,196 2,197 cash and cash equivalents at end of period/year 2,484 1,311 1,391        notes to the unaudited interim financial information for the six months ended 30 june 2025 1.    general information malvern international plc (the "group") is a public limited liability company incorporated in england and wales on 8 july 2004. the group was admitted to aim on 10 december 2004. its registered office is: 3rd floor, 1 ashley road, altrincham, cheshire, united kingdom, wa14 2dt. the registration number of the group is 05174452. the principal activities of the group are that of investment holding and provision of educational consultancy services.  the group provides an educational offering that is broad and geared principally towards preparing students to meet the demands of business and management. there have been no significant changes in the nature of these activities during the period. 2.    significant accounting policies basis of preparation the group's unaudited interim results for the six months ended 30 june 2025 ("interim results") are prepared in accordance with the group's accounting policies which are based on the recognition and measurement principles of the uk-adopted international accounting standards in conformity with the requirements of the companies act 2006. as permitted, the interim results have been prepared in accordance with the aim rules and not in accordance with ias 34 "interim financial reporting" and therefore the interim information is not in full compliance with international accounting standards. the interim condensed consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation of certain financial instruments. the accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the group's annual consolidated financial statements for the year ended 31 december 2024 (malvern 2024 annual report). the principal accounting policies of the group have remained unchanged from those set out in the group's 2024 annual report and financial statements.  the principal risks and uncertainties of the group are also set out in the group's 2024 annual report and financial statements and are unchanged in the period. the financial information for the six months ended 30 june 2025 and 30 june 2024 has not been audited and does not constitute full financial statements within the meaning of section 434 of the companies act 2006. the group's 2024 financial statements for the year ended 31 december 2024 were prepared under uk-adopted international accounting standards. the auditor's report on these financial statements was unqualified and did not contain statements under sections 498(2) or (3) of the companies act 2006 and they have been filed with the registrar of companies. however, the auditor's report did draw attention to a material uncertainty in relation to going concern. 3.    profit/(loss) per share the basic profit/(loss) per share is calculated by dividing the profit/(loss) before tax attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the relevant period. the weighted average number of shares in issue during the period was 24,442,400 (h1 2024: 24,442,400). 4.    reconciliation of statutory information to underlying information underlying information is provided because the directors consider that it provides assistance in understanding the group's underlying performance. the following table includes details of non-underlying items and reconciles statutory information to underlying information:   total revenues1 direct costs gross profit indirect costs & other income finance costs profit before tax june 2025 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 underlying results 7,297 (2,757) 4,540 (3,971) (193) 376 malvern house brighton (a) ― ― ― ― ― ― staff restructuring costs (b) ― ― ― ― ― ― malaysia liquidation (c) ― ― ― ― ― ― statutory results 7,297 (2,757) 4,540 (3,971) (193) 376     total revenues1 direct costs gross profit indirect costs & other income finance costs profit before tax june 2024 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 underlying results 6,136 (2,642) 3,494 (3,101) (210) 183 malvern house brighton (a) ― 3 3 (6) (3) (12) staff restructuring costs (b) ― ― ― (35) ― (35) malaysia liquidation (c) ― ― ― (3) ― (3) statutory results 6,136 (2,639) 3,497 (3,145) (213) 139             total revenue1 direct costs gross profit indirect costs & other income finance costs (loss)/ profit before tax december 2024 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 underlying results 16,632 (9,567) 7,065 (6,841) (355) (131) malvern house brighton (a) 1 36 37 (61) (4) (28) share-based payments (d) ― ― ― (5) ― (5) warrants (e) ― ― ― 61 ― 61 staff restructuring costs (b) ― ― ― (42) ― (42) statutory results 16,633 (9,531) 7,102 (6,888) (359) (145)           1 includes agent commission income. a.    malvern house brighton during 2023 the directors of the group announced its decision to close malvern house brighton. the decision was made following a review of the viability of the school, informed by current operations, overhead costs, projected student numbers, financial performance and the further investment required for the school to achieve profitability which it had yet to do. b.    staff restructuring costs in 2023 and 2024 the management of the group undertook a staff review to ensure that the group uses its resources as efficiently as possible. c.     malaysia liquidation and loan write-back minor liquidator costs to close out the remaining issues from the group's former malaysian entity. d.    share-based payments the group has an enterprise management incentive share option scheme for certain directors and employees. under the scheme, participants have been awarded options to acquire up to a prescribed level of shares.   e.    warrants as part of the term loan, boost&co. was issued warrants over 1,725,113 shares. these warrants are exercisable at the strike price at any time over the following 10 years since the inception of term loan in august 2019. the warrants are revalued at fair value annually, any movement is expensed in the consolidated statement of comprehensive income. during the period, the warrants were transferred from boost&co. to shareholder 8 kpg limited. the group was not involved in this private transaction. - ends - this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. for further information about how rns and the london stock exchange use the personal data you provide us, please see our privacy policy.   end   ir seaesueiselu return to news summary

Label: Neutral