(Sharecast News) - Malvern International said in a trading update on Monday that preliminary unaudited figures suggested a substantial revenue surge in 2023, with revenues climbing 79% to £11.3m.
The AIM-traded firm said it made a modest profit before tax from trading activities of £0.3m, swinging from a £1m loss in the 2022 period.
It noted that the figures excluded certain non-trading items such as annual revaluations of warrants and share-based payments, as well as losses totalling £0.2m related to discontinued operations from the Brighton school.
The cash balance as of 31 December totalled £2.2m, up from £1.2m a year earlier.
Malvern put the improvement down to delayed invoicing for summer accommodation costs for Juniors, totaling £1m, up from £0.7m a year earlier.
Term loans decreased to £2.1m from £2.5m, and lease liabilities amounted to £2.7m from £3.1m, resulting in unaudited net debt of £2.6m, narrowing from £4.4m.
The latter half of the year saw a robust performance, particularly in the high season for Juniors generating £3.7m in revenue from 2,478 students, primarily in July and August.
Adult English language training (ELT) revenue from the Manchester and London schools also saw a 13% increase to £1.8m.
The International Study Centre at the University of East London (UEL) saw a higher than anticipated intake of 447 students in September, driven by outstanding results from specific markets and programme, contributing to the overall growth across all divisions, with second-half revenue rising to £7.3m in 2023 from £4.2m in 2022.
Looking ahead, the company said it anticipated significant growth in the revenue pipeline for Juniors, projecting £6.5m for 2024 compared to £3.7m in 2023.
The appointment of an experienced sales director aimed to further drive product development and scale the Junior and ELT divisions, the board said.
Moreover, expansion efforts included developing academic programs to extend geographic reach and boost out-of-season revenues.
In the University Pathways segment, student intake for January exceeded expectations, with around 330 students enrolled, marking a steady increase from previous years.
Despite potential challenges posed by changes in UK government immigration rules, Malvern International said it remained optimistic, leveraging its success with UEL to secure new partnerships and strategic hires to support business development and marketing efforts.
In light of ongoing developments in admissions practices within UK universities, Malvern emphasised its adherence to compliance procedures and alignment with UK immigration requirements.
"I am very pleased with the progress being made by the management team," said chairman Mark Elliott.
"This, together with the investment in the business development and sales and marketing teams, combined with an expanded agent network is supporting the growth in student numbers.
"Through this we are building a high performance team, and attracting talent with significant track records and profiles in our industry, and who have bought into our growth ambitions."
Elliott said the company remained watchful of - and was preparing for - shifting visa and academic student requirements for higher education and the changes the University Pathways business could face as a result.
"In response, we are making strategic investments in people, products and locations to scale Juniors and build adult ELT numbers at our schools.
"The result will see a more balanced mix of revenues between the three divisions and the board remains confident that 2024 will see further growth in revenue and profit."
At 0840 GMT, shares in Malvern International were up 5% at 26.25p.
Reporting by Josh White for Sharecast.com.
Malvern Intl (MLVN)