Malvern Intl Regulatory News (MLVN)

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

29 June 2026

Malvern International PLC

("Malvern" or the "Group")

Interim results for the six months ended 31 March 2026

Malvern International plc (AIM: MLVN), the global learning and skills development partner, announces its interim results for the six months ended 31 March 2026 ("H1 2026" or the "Period").

The results reflect planned strategic investment to deliver on the Group's expanded portfolio of long-term university partnerships, with four secured in the last 18 months.

Strategic progress and contract awards

· The period saw strategic investment in the broader portfolio of University Partnership contracts, including:

o Scale up of in-house sales and marketing, and the expansion of the agent network in established and new markets to deliver long-term contracts and support student number growth.

o Central and support functions to ensure student attainment and course completion.

· Signed a 15-year partnership in January 2026 with London Metropolitan University with the first intake scheduled for September 2026.

· Current university international student numbers for the 2025/26 academic year are 966 (2024/25: 1,023; 2023/24: 794). The numbers reflect:

o First intakes at the Universities of Cumbria, Wolverhampton and Liverpool Hope which will benefit from a full-year cycle of sales and marketing support from FY 2027.

o Reduced numbers at UEL following more selective student recruitment in certain markets.

o Reduced January 2026 intake reflecting Visa delays, leading to students deferring to September 2026.

· Reshaped ELT business to focus on scaling the Junior division and closing unprofitable Adult ELT schools in Manchester and London.

· Sales for Junior ELT for Summer 2026 are building strongly across eleven centres (Summer 2025: nine centres).

Highlights

· Underlying revenue, excluding agent commission and discontinued Adult ELT, grew to £4.44m (H1 2025: £4.19m). (Adult ELT revenues were £0.79m (H1 2025: £1.26m). See note 4 for further details.)

· Underlying EBITDA loss was £0.94m (H1 2025: underlying EBITDA profit £0.73m), reflecting planned internal investment which will continue into H2 2026.

· Statutory loss after tax was £1.60m (H1 2025: statutory profit after tax of £0.23m).

· Statutory loss per share was 4.80p (H1 2025: statutory profit per share 0.96p).

· Successful fundraising of £1.96 million (net of expenses) in February 2026 by way of Placing and Retail Offer.

· Cash at 31 March 2026 was £2.68m (FY 2025: £1.89m and H1 2025: £2.05m)

· Group debt reduced to £1.19m at the end of the Period (FY 2025: £1.45m and H1 2025: £1.74m), as repayment of the Term Loan through cash flows continues.

Commenting on the results and prospects, Richard Mace, Chief Executive Officer, said:

"Malvern has made strong strategic progress, and the first half of FY 2026 was an important period of development. With an expanded portfolio of university partnerships, we invested in the people, systems and operating capability needed to support a larger University Pathways division, while reshaping the ELT business to focus on growing the Juniors division.

The four new long-term partnerships secured in the last 18 months, including a 15-year partnership with London Metropolitan University during the period, are now moving from launch into execution. While the first intakes are at an early stage, the enlarged portfolio gives us a broader addressable market, stronger commercial terms and an improved platform to grow the business. Alongside this, student bookings for Junior ELT for the Summer season are at record levels, with two new centres added, bringing the total to eleven.

The Group is well funded following the February fundraise, we continue to reduce our debt, and our operational focus is clear. We will grow student numbers across the new partnerships to enable the Group to benefit from operational leverage, while maintaining the quality, compliance standards and student outcomes that are central to how universities choose their delivery partners.

Recruitment for the 2026/27 academic year is progressing well, with student numbers expected to be materially ahead of 2025/26, subject to final enrolments over the coming months. We are confident that our strategy and the actions being taken in FY 2026 position the Group for improved performance and a return to profitability in FY 2027."

Notes to Editors:

Malvern International is a learning and language skills development partner, offering international students essential academic and English language skills, cultural experiences and the support they need to thrive in their academic studies, daily life and career development.

University Pathways provides on- and off-campus in-sessional and pre-sessional programmes to support international students in progressing to a wide range of universities and undergraduate courses. Malvern assists its university partners with international student recruitment and conversion, admissions, fee collection, and course delivery, including teaching, orientation, and student support.

English Language Teaching is provided to young learners through fully immersive residential English language centres and customised language programmes at high-quality locations.

For further investor information, go to www.malverninternational.com.

CHIEF EXECUTIVE'S REVIEW

The first half of FY 2026 was an important development period for Malvern, during which we began delivering four long-term university partnerships which were secured over the last 18 months. The new contracts significantly enlarge our portfolio and create a platform to scale the business.

We are well-funded to make the investments needed to deliver our growth strategy following the £1.96m (net) raised in February 2026. As part of this, we strengthened the senior team with experienced sector hires across the sales and operations teams, enabling us to accelerate student recruitment and ensure high-quality teaching and pastoral care.

During the Period, we also completed the transition to our new reporting calendar and exited the loss-making Adult ELT schools, concentrating the Group on its more scalable, higher-growth activities.

Financial review

Revenues from continuing operations, excluding agent commission and discontinued Adult ELT, grew 6% to £4.44m (H1 2025: £4.19m). The revenue growth is the result of the first international student enrolments at the Universities of Cumbria, Liverpool Hope and Wolverhampton, which allow a large portion of fees to be collected ahead of course delivery each academic year.

The underlying EBITDA loss was £0.94m (H1 2025: underlying EBITDA profit of £0.73m), reflecting the strategic investment in staff, IT, sales and marketing, to develop the larger university portfolio. 

Discontinued Adult ELT revenues were £0.79m (H1 2025: £1.26m) and the immediate costs relating to the closure of Adult ELT in February 2026 totalled circa £0.30m. See note 4 for full details.

The statutory loss after tax was £1.60m (H1 2025: statutory profit after tax £0.23m). The statutory loss per share from operating activities was 4.80p (H1 2025: statutory profit per share 0.96p).

We continue to pay down debt through cash flows, with £1.19m remaining outstanding on 31 March 2026, down from £1.45m on 30 September 2025. During the Period, the Group debt was transferred from Growth Lending to Beechbrook Capital. There are no changes to the terms of the agreement.

Cash balances at 31 March 2026 were £2.68m (30 September 2025: £1.89m and 31 March 2025: £2.05m), supported by £1.96m (net of expenses) raised in February 2026.

Operating review

University Pathways

The number of students recruited for our university partners for the 2025/26 academic year was 966 students (2024/25: 1,023 students; 2023/24: 794 students). These numbers include initial international student enrolments at the Universities of Cumbria, Liverpool Hope and Wolverhampton ahead of a full year recruitment cycle, a more selective approach in recruitment from certain markets resulting in lower student numbers at UEL, and student deferrals from the January 2026 intake to September 2026 following Visa processing delays at the Home Office.

We are confident that, with a larger portfolio and broader addressable market, backed by a growing agent network, we will see student numbers increase in 2026/27 once again. In addition to our own internal investments to support growth, our confidence is supported by the UK Government reaffirming its commitment to backing education exports in January 2026, and overseas student income remaining critical to UK university funding.

Since the beginning of 2025, our portfolio has grown from two international study centres (including a smaller partnership with NCUK) to six. Importantly, the new partnerships have been secured under minimum five-year contracts, allowing us time to develop and grow student enrolments.

Our sales and marketing teams have been exceptionally busy launching the new partnerships while supporting existing contracts during the period, delivering targeted international recruitment campaigns and partner engagement activities across key growth markets.

In collaboration with our partners and agent network, we conducted six international market development roadshows, delivered launch events, attended conferences and led recruitment tours. We have also delivered agent training sessions, webinars and launched three new International Study Centre websites, providing an enhanced user experience and a more streamlined application journey for prospective students.

With these efforts ongoing, we were delighted to deliver our first international student enrolments in September 2025 at the Universities of Wolverhampton and Cumbria. We also saw a small number of students start at the new Liverpool Hope University ISC in January 2026, following a five-year contract awarded in July 2025.

In January 2026, we signed a 15-year partnership with London Metropolitan University (LMU) to rapidly expand the international student body from September 2026, offering a range of recruitment, education, and support services.

These university propositions continue to be well received by international students and our expanding agent network. This year's student volumes provide a solid foundation for scaling numbers from September 2026 and beyond, as the contracts begin to benefit from full-year sales cycles.

Student recruitment, admissions and compliance

With a significantly larger portfolio than we had a year ago, scaling our sales function and increasing international student recruitment are now strategic priorities. Controlled expansion of our pathway agent base is essential to this effort and is supported by our sales and marketing teams. We strengthened our sales team with the appointment of an experienced Vice President of Global Recruitment.

Our strategy focuses on broadening our addressable markets, principally Southeast Asia, parts of sub-Saharan Africa and North Africa. In addition to activating a wider pool of agents in existing territories, we are developing new relationships to expand our reach, including targeting regions that were previously sub-scale but are now commercially viable with our larger portfolio.

To maintain quality, we have strengthened our systems and admissions procedures. These are designed to sustain a high sales-to-conversion ratio, and support Visa acceptance, enrolment and course completion rates. From an initial inquiry to enrolment, our teams have a clear process to screen and interview applicants, maintain regular and consistent communication with prospective students before their arrival and provide additional support on entry. This helps to reduce the drop-off rate between the confirmation of acceptance for studies and the start dates of the courses.

From June 2026, the new Student Sponsor grading framework raises the bar on recruitment quality and compliance across the sector, which favours established independent operators like Malvern. Our quality-first operating model, which includes front-end screening, in-course monitoring, and compliance oversight, is designed to support universities in this environment and makes us an attractive partner.

Student delivery

We are in the process of recruiting teaching and pastoral teams at LMU ahead of the September intake and continue to develop our provision at the Universities of Wolverhampton, Cumbria, and Liverpool Hope as student numbers build.

We are working with our partners to strengthen processes that support student attainment and progression. This includes reinforcing the student-facing staff roles that provide academic guidance and pastoral support, ensuring students are well-supported throughout their studies.

English Language Teaching (ELT)

In February 2026, the Board decided to reshape ELT operations to focus exclusively on Junior ELT and young learner camps, closing the Adult ELT schools in Manchester and London as part of a deal with a competitor. Adult ELT is therefore a discontinued operation.

Junior ELT sales for the Summer 2026 season are building across eleven centres, with revenues to be recognised in H2 2026.

To support sales, we launched new Junior ELT marketing materials aligned with Malvern's refreshed branding and attended events across key sending markets. We have also focused on increasing brand awareness and sales conversion across a wide range of digital channels for the Innovate Summer Academy, targeting the domestic audience and resulting in strong uptake from this market.

Current projections indicate that student numbers for Summer 2026 will increase by circa 20% to 25%, to between 4,165 and 4,330, compared to 2025 (3,471 students across nine centres). This growth is supported by strong demand from traditional sending markets such as Italy and has also benefited from the development of emerging regions in Southeast Asia, Latin America and Turkey.

Revenue from Junior ELT is therefore expected to increase by 11% to 18% to between £7.0m and £7.6m.

Summary and outlook

The Group entered the second half with a broader university partnership portfolio, an anticipated strong Junior ELT Summer season and a clear platform for growth over the coming years.

Our planned investment will continue throughout the remainder of FY 2026 to ensure we have the resources required to support a larger business and student growth. As previously reported, although revenues in H2 FY 2026 are expected to increase, these investments mean that we expect to report an EBITDA loss for FY 2026.

Current university student recruitment for the 2026/27 academic year is progressing well, with student numbers expected to be materially ahead of 2025/26, subject to final enrolments over the coming months, being supported by the first full recruitment cycles for the newer partnerships and the launch of London Metropolitan University from September 2026. As a result, we expect to deliver growth and profitability in FY 2027 and beyond.

To conclude, we are making significant progress in our strategy to diversify our client base and transform Malvern into a larger, more scalable business. We remain focused on ensuring the success of all our partnerships, increasing student numbers, providing high-quality teaching and pastoral care, and delivering positive student experiences and outcomes which in turn will deliver returns for our shareholders.

Richard Mace

Chief Executive Officer

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31 MARCH 2026

*The underlying and non-underlying results for the periods ended 30 September 2025 have been restated to reflect the inclusion of the Adult ELT results of Communicate English School and Malvern House International Limited. The restatement has been made to ensure consistency and comparability of financial information presented across the periods. The comparative interim information presented for the interim period ended 31 March 2025 relates to the six-month period from 1 October 2024 to 31 March 2025.

See note 4 for a reconciliation of underlying.

UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2026

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 31 MARCH 2026

* Adjustment in respect of costs relating to the year ended 30 September 2025, identified after those Consolidated financial statements were finalised.

UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31 MARCH 2026

* Adjustment in respect of costs relating to the year ended 30 September 2025, identified after those Consolidated financial statements were finalised

NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION FOR THE SIX MONTHS ENDED 31 MARCH 2026

1. General information

Malvern International plc (the "Group") is a public limited liability company incorporated in England and Wales on 8 July 2004. The Group was admitted to AIM on 10 December 2004. Its registered office is: 3rd Floor, 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT. The registration number of the Group is 05174452.

The principal activities of the Group are provision of educational consultancy services. The Group provides an educational offering that is broad and geared principally towards preparing students to meet the demands of business and management. The closure of Adult ELT aside, there have been no significant changes in the nature of these activities during the period.

2. Significant accounting policies

Basis of preparation

The Group's unaudited interim results for the six months ended 31 March 2026 ("Interim Results") are prepared in accordance with the Group's accounting policies which are based on the recognition and measurement principles of the UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006. As permitted, the Interim Results have been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting" and therefore the interim information is not in full compliance with International Accounting Standards.

The interim condensed consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation of certain financial instruments. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 30 September 2025 (Annual Report September 2025) The principal accounting policies of the Group have remained unchanged from those set out in the Group's 2025 annual report and financial statements. The Principal Risks and Uncertainties of the Group are also set out in the Group's 2025 annual report and financial statements and are unchanged in the period.

The financial information for the six months ended 31 March 2026 and 31 March 2025 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

The Group's 2025 financial statements for the year ended 30 September 2025 were prepared under UK-adopted International Accounting Standards. The auditor's report on these financial statements was unqualified and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006 and they have been filed with the Registrar of Companies.

3. Profit/(loss) per share

The basic profit/(loss) per share is calculated by dividing the profit/(loss) before tax attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the relevant period. The weighted average number of shares in issue during the period was 33,471,712 (H1 2025: 24,442,400).

4. Reconciliation of statutory information to underlying information

Underlying information is provided because the Directors consider that it provides assistance in understanding the Group's underlying performance.

The following table includes details of non-underlying items and reconciles statutory information to underlying information:

a. Adult ELT Schools

In February 2026, the Company announced the closure of its Adult English Language Teaching schools in Manchester and London. Students have been transferred to a competitor via an asset purchase agreement in February 2026. The Company will also sublease the Manchester building to the competitor from the end of February 2026. The London building is being retained by the Company whilst all possible options are assessed.

b. Staff restructuring costs

The management of the Group have completed a staff review to ensure that our resources as efficiently as possible.

c. Share-based payments

The Company has an Enterprise Management Incentive share option scheme for certain directors and employees. Under the scheme, participants have been awarded options to acquire up to a prescribed level of shares.

d. Warrants

As part of the Term Loan agreement entered into in August 2019, the Group issued warrants over 2,304,297 shares to Growth Lending (formerly BOOST&Co). The warrants are revalued at fair value annually, any movement is expensed in the Consolidated Statement of Comprehensive Income. During the previous period, the warrants were transferred from Growth Lending to shareholder 8 KPG Limited. The Group was not involved in this private transaction.

e. Impairment of goodwill 

During the year, in assessing the carrying value of the goodwill of the Manchester school, the future benefits indicated that the full value of goodwill was not recoverable and should therefore be impaired.

- ENDS -