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(Alliance News) - Malvern International PLC on Thursday said it swung to a loss in the first half of 2020 following widened finance costs.
The learning and skills development company swung to a pretax loss in the first half ended June 30 of GBP435,000 from a GBP25,000 profit a year before. Finance costs widened to GBP178,000 from GBP41,000 a year before.
Revenue was down 26% to GBP1.4 million from GBP1.9 million a year prior.
Chief Executive Richard Mace said: "The financing activities in June, along with strong cost-control measures, have provided the company with the head-room to continue operating and, unless there is a marked deterioration in the current operating environment position, until activity levels return to normal operations."
The company did not declare an interim dividend, same as the year prior.
Going forward, Mace said: "While the long-term education market fundamentals remain unchanged and current bookings are encouraging, the continuing effects of Covid-19 dictate it is appropriate that we remain cautious in our outlook, whilst continuing to invest in and grow the existing business."
Near and medium-term bookings are encouraging, Malvern said.
Malvern is seeing strong demand from Gulf region language students for a January start, but the company said there remains significant uncertainty around travel restrictions which may delay some students from entering the UK, potentially impacting course start dates.
Malvern shares were up 15% at 0.12 pence each in London on Thursday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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