Malvern Trading Updates
Ahead of today’s Annual General Meeting, Malvern International plc (AIM: MLVN), the provider of educational services in the UK, Europe and Asia, is pleased to provide the following trading update.
The interim results for the six months ending 30 June 2017 are expected to show losses lower than the same period last year. The Board is confident that the trading performance of the Group will continue to improve through the second half of the year and will be enhanced further as the initiatives set out below start to take effect.
Substantial progress has been made in the year to date both developing Group wide initiatives and within the individual schools of the countries in which Malvern operates. These are summarises below.
1. International Skills Development update
As part of the implementation of its strategic plan announced in November 2016, Malvern is enhancing its offering by providing consistent products and services across all of its centres where possible. Particular focus is being placed on identifying the programmes that can be offered in all centres with minimal differences and local adjustments. Having said this, the centres will continue offering their own locally unique products based on the industry needs as well. The following areas of learning have been identified and worked on as part of this rollout in all centres:
· July 2017: Short courses in IT and Business;
· September 2017: Cyber Security;
· September 2017: ACCA and Accounting – with some country differences; and
· October 2017: English Language Training.
2. London School Update
The London school has made good progress during 2017. Of particular note is:
· Finance: It has been cash independent over the last few months and is making steady progress towards profitability;
· Enrolment figures have improved in comparison to the previous year and its trading performance over the summer period is expected to be better than the previous years;
· First Aid, Health and Safety, and Security courses have been added to London’s offering. This is being offered as a joint venture activity with another UK provider. The first round of classes started in May with a healthy number of enrolments;
· ACCA approval for Silver Status received. Classes are planned to start from September 2017; and
· NCUK Foundation Year programme – London is moving towards its first round of delivery for NCUK Foundation Level offering guaranteed entry to 16 Universities in the UK upon successful completion of the programme.
3. Singapore School update
· New Leadership team in place with improved systems and quality of offering;
· Concluded EduTrust review process. The result is pending and is expected in the next few months;
· ACCA approval for Silver Status received. Classes are planned to start from September 2017;
· Signed agreements with two large community associations and a large international firm to offer training services and skills courses to their members and staff. Some of these programmes are partially funded by the government; and
· Plan to offer tuition support to expand its offering to younger age clients.
4. Malaysia School update
· New Leadership team is appointed with clear target to improve the quality of the existing offering and explore new directions within a sustainable environment;
· Stronger local marketing resources working on higher recruitment this year and to promote the service to local students;.
· As part of the group’s focus on community initiatives and promotion of higher quality education, a scholarship scheme was created and three top scholars were selected based on their academic success to London for further learning. It has also allowed them to act as ambassadors for Malaysia;
· Plan to expand to other locations in Malaysia;
· Plan to offer tuition support in partnership with a firm in Hong Kong.
5. Other Group initiatives:
· Learning Technology division is fully operational. An announcement was made on 22 June 2017 about the Mobile Game Learning platform and more digital learning products will be rolled out in the coming months;
· The international marketing team continues to work to promote all centres – the improvement in results through this centralised efficiency is evident;
· Negotiation continues with a number of established institutions to explore joint ventures or partnership opportunities;
· In addition to the organic growth, Malvern is looking to make new acquisitions in the countries that it operates as well new targeted locations.