Malvern Intl (MLVN) Share Price Rallied 10.2% on FY 2023 Results

The Malvern International PLC (LON: MLVN) share price rallied 10.2% after the leading provider in global education and skills enhancement announced an update on its financial performance for the year ending 31 December 2023 (“FY23”), along with insights into current operations.

For FY23, the company has observed a remarkable revenue increase of 79%, reaching approximately £11.3 million, up from £6.3 million the previous year after adjusting for agent commission income. 

The period also marked a transition to profitability, with trading activities generating a modest pre-tax profit of around £0.3 million, significantly improving from the £1.0 million loss recorded in FY22.

It's important to note that these figures exclude the impact of annual warrant revaluations, share-based compensations, and a £0.2 million loss from the discontinued operations of the Brighton school.

As of 31 December 2023, the company's cash reserves stood at £2.2 million, an improvement from £1.2 million in FY22. This increase was partly due to delayed billing for summer accommodation for junior students, amounting to £1.0 million. 

The term loan balance was reduced to £2.1 million from £2.5 million, and lease liabilities were down to £2.7 million from £3.1 million, resulting in an unaudited net debt of £2.6 million, significantly lower than the £4.4 million reported in FY22.

The second half of the year witnessed a surge in demand for the Juniors program, generating £3.7 million in revenue from 2,478 students, primarily during the summer months, a substantial increase from the previous year.

Additionally, revenue from Adult English Language Training (ELT) in Manchester and London saw a 13% increase to approximately £1.8 million, with peak summer months showing a 20% rise over the prior year. 

The International Study Centre at the University of East London (UEL) welcomed an unexpectedly high number of 447 students in September 2023, driven by exceptional performance in specific markets and programs.

This growth across all divisions pushed the H2 revenue up to approximately £7.3 million in FY23 from £4.2 million in FY22.

Malvern International (MLVN) share price. 

Malvern International's share price rallied 10.2% to trade at 27.55p from Friday’s closing price of 25.00p.