Malvern International : Half Year Report

Interim results for the six months ended 30 June 2018

Malvern International plc (AIM: MLVN), the global learning and skills development partner, is pleased to announce its interim results for the six months ended 30 June 2018.

Key Points include:

1. Revenues of £2.61m (2017: £1.65m) with strong second half expected due to natural seasonality of the business
2. Considerable progress across the Group in ensuring quality standards and improving operational efficiencies
3. Operating loss of £0.22m (2017: operating loss of £0.36m)
4. Loss before tax of £0.371m including an impairment charge of £75,000 (2017: loss of £0.395m with a net nil impairment charge)
5. Loss per share on continuing activities of 0.29p (2017: 0.39p) - weighted average number of shares in issue during the period 125,763,888 (2017: 102,233,393)
6. Conversion of £540,000 of loan notes
7. Current assets of £5.148 million (2017: £1.779 million)
8. Net cash at 30 June 2018 saw a significant increase to £3.11m (2017: £0.47m)
9. London has continued to show an improved performance delivering revenues of £1m (2017: £770,000) and a small operating profit of £93,000 compared to an operating loss last year of £15,000
10. The trading performance in Singapore has seen positive improvement for the first half of 2018 with revenues of close to £1m (2017: £109,000) driven by the recently acquired SAA Global Education Centre Pte Ltd
11. Revenue in Malaysia, while approximately 30% lower than the first half of last year, is showing signs of stabilisation following the implementation of improvement plans and further development of new programmes and enrolment. The Company expects Malaysia to be consistent half on half until the year end
12. In June 2018, the Company completed an oversubscribed placing of 100,000,000 new ordinary shares at a price of 4 pence per share raising £4 million before expenses
13. The purchase of Communicate English School Limited was completed on 2 July 2018 for a consideration of £2,340,000 and satisfied by cash consideration of £1,650,000 and a share consideration of £690,000, through the issue of 13,800,000 ordinary shares at 5 pence each

The total number of Ordinary Shares of the Company in issue as at 4 July 2018 was 238,788,333 (31 December 2017: 114,188,333).