Malvern International plc (AIM: MLVN), the global learning and skills development partner, announces its results for the year ended 31 December 2019.
Impairment of intangibles
Loss for the year
- Loss from discontinued operation (Malaysia) £2.48m (2018: £0.35m).
- Loss for the year, including discontinued operations £8.37m (2018: loss of £0.57m).
- Loss per share for the year of 3.26p (2018: 0.31p) 3.
- Cash as at 31 December 2019 was £83,264 (2018: £105,380).
1 As at 31 December 2019, continuing operations included activities in the UK and Singapore, following the disposal of Malaysia operations during the year.
2 Of which £23,822 relates to the amortisation of the brand, licences and trademarks relating to SAA Singapore
3 Calculated using weighted average number of shares in issue during the period 256,453,628 (2018: 185,344,459).
Post-year end developments and fundraising
- Operations, revenues, and cash flows impacted significantly by Covid-19 resulting in:
- UK schools closed from 20 March 2020 with London and Manchester reopened 10 August 2020, and the Brighton school reopened in September 2020;
- Singapore schools closed from April 2020; and
- the decision to permanently close Singapore school was announced in early August with the majority of existing students either taught to the end of their course or transferred to other institutions.
- Completed the sale of Malaysia operations just after the year end, with all remaining assets sold.
- Raised net amount of £1.15 million in June 2020 by way of a Placing and Subscription to provide the Company with sufficient liquidity and flexibility to allow the Company to manage through the period of expected disruption caused by Covid-19.
- Restructured existing debt (arranged in August 2019) of £2.60m (with Boost & Co.), providing for a two-year capital repayment holiday to March 2022.
- Appointed Richard Mace as Chief Executive Officer.
- Cash at bank and in hand as at 31 August 2020, and after receipt of funds from the fundraising in June, was £0.67m
Commenting on the results and prospects, Mark Elliott, Non-Executive Chairman, said:
“As a result of the impact of Covid-19, the Board took the decision to close the Singapore school due to the significant investment it would have required to maintain the business as a going concern.
“Under the management of our new CEO, Richard Mace, we can now focus entirely on the UK business. We are working on the assumption that business will return to normal levels by the summer of 2021. In the meantime, the London, Manchester and Brighton language schools have now reopened following government social distancing and hygiene guidelines. In addition, our university partners reopened in September with the first cohort of students having the option of remote and streamed classes. The second cohort will start in January.”