Malvern revenues soar as Manchester proves a winner

Global learning and skills development firm Malvern International saw revenues nearly double in its last trading year, driven by a strong showing by its newly integrated Communicate English language school in Manchester.

Malvern said its group performance in 2018 had been in line with market expectations, with revenues from continuing operations expected to be in excess of £8m - close to a 100% increase on the equivalent period in 2017.

The AIM-listed outfit also expects to report a profit in line with expectations having adjusted for "a number of one-off and non-recurring costs".

Malvern's London school "continued to improve" during the year, with record revenues of nearly £4m expected, while its Singaporean operations moved back into the green and its Manchester school performed "ahead of management's expectations in both revenue and profit terms".

On the other hand, Malvern warned that its operations in Malaysia had seen "significant change" during the year with both property and personnel rationalisation absorbing more management time and cash resources than initially expected.

However, Malvern added that operating costs had been reduced and revenues had eventually stabilised.

Looking forward, Malvern said: "At this early point in the year, bookings for 2019 are positive and the expectation is that the seasonal pattern for trading will be similar to 2018."

"Improvements in the trading of all of the group's schools are expected and as a result, the directors are confident about the prospects for the Group as a whole."

As of 1030 GMT, Malvern shares had slid 6.82% to 4.10p.