Malvern International reports strong turnaround in 2023

10th Apr 2024 11:51

(Sharecast News) - Malvern International unveiled its preliminary results for 2023 on Wednesday, showcasing a notable turnaround in its business performance.

The AIM-traded company reported a shift from an underlying loss of £1.07m in 2022 to an underlying profit of £0.15m.

It recorded 86.8% growth in underlying revenue, excluding agent commission, which reached £10.65m compared to £5.7m in 2022.

Agent commission revenue, which directly benefits the group's agents, also saw a notable increase, totaling £0.94m compared to £0.18m a year earlier.

The firm said it experienced revenue growth across all sectors, with total revenue reaching £12.2m, surging from £6.5m in 2022.

Its higher education and juniors segments particularly demonstrated strong performances.

The board said that robust revenue growth translated into an underlying operating profit of £0.51m, a stark contrast to the £0.79m underlying loss reported in 2022.

Additionally, the underlying profit per share showed a significant improvement, standing at 0.6p compared to an underlying loss of 4.88p per share a year earlier.

The statutory loss was reduced to £0.14m from £1.08m in the previous year.

Malvern International said it initiated the repayment of company debt in 2023, successfully reducing the debt to £2.24m by year-end, from £2.6m in 2022.

Additionally, the company said it focussed on assembling a high-performance team and continued investments in key areas such as people, sales, marketing, and finance functions to support its growth aspirations.

"Malvern's performance in 2023 surpassed the wider market, which continues to recover toward 2019 levels," said chief executive officer Richard Mace.

"We achieved year-on-year revenue growth across all three divisions, with exceptional performances from University Pathways and strong growth in Juniors.

"These results have enabled us to make strategic investments in our people and systems, which are crucial as we prepare for the next stage of development."

Mace said forward bookings and revenue visibility for 2024 and into 2025 were building.

"Additionally, we are diversifying our business mix by introducing new high-end academic programmes and offering out-of-season language programmes.

"Over the past year, we have assembled a high-performance leadership team, adding momentum to the business and supporting our growth aspirations.

"With a clear strategic direction, we are well-positioned for continued success."

At 1143 BST, shares in Malvern International were up 4.76% at 22p.

Reporting by Josh White for Sharecast.com.