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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Malvern International Plc | LSE:MLVN | London | Ordinary Share | GB00BNBVJZ07 | ORD GBP0.01 |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 19.50 | 18.00 | 21.00 | 19.50 | 18.00 | 19.50 | 0.00 | 08:00:23 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Schools & Education Svcs,nec | 6.6M | -1.08M | -0.0443 | -4.40 | 4.77M |
From May 2019 to May 2024
TIDMMLVN
RNS Number : 3227M
Malvern International PLC
27 April 2018
27 April 2018
Malvern International Plc
('Malvern', the 'Group' or the 'Company')
Final Results for 12 months to 31 December 2017
Malvern International Plc, the global learning and skills development partner, is pleased to announce its final results for the 12 months to 31 December 2017.
Highlights include:
-- Early signs of new growth strategy evident in Group performance -- Strong second half -- Momentum carried into 2018 -- Collaboration agreements established with Playware and Oxford University Press -- Acquisition and integration of transformational SAA-GE in Singapore -- Appointment of Dr Sam Malafeh as Chief Executive Officer -- Launch of Malvern Online (post period end) -- Partnership agreement to embed Malvern within University of East London (post period end)
Commenting on the results and prospects Gopinath Pillai, Chairman at Malvern, said:
"2017 as a whole, and in particular the second half, has seen a considerable improvement in the Group's performance and an upward trajectory is now discernible. This has been due to three main factors. Firstly, a stronger management has been in place which will be strengthened further as we go forward. Secondly, the agent network has been reorganised successfully. Thirdly, our offerings now cover a wider range of products. In addition to these factors, I am optimistic that the first major acquisition which we completed in November 2017 will have a significantly positive impact not only on the operations of Singapore but also for our global platform. The Board continues to be active in discussions with potential acquisition partners."
"With the new acquisition of a four-year EduTrust licensed school in Singapore, the continuing new initiatives in London and the re-introduction of international student intakes in Malaysia, the Group is well positioned to benefit from the expected growth through acquisition and organic growth. We have taken big leaps in reducing our operating losses from GBP1.45 million in 2016 to GBP0.69 million in 2017."
"Trading in the current financial year has started well and the Board is now confident that with the reorganised and a more focused Group, the impact on the performance of the Group can only be positive going forward and that it will bring the Group to profitability in 2018."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Hot Features
Premium
For further information
please contact:
Malvern International www.malverninternational.com
Plc
Dr Sam Malafeh - Chief Via Walbrook PR
Executive Officer
Navin Khattar - Non-Executive malvern@walbrookpr.com
Director
WH Ireland (NOMAD & Broker) www.whirelandcb.com
Mike Coe / Ed Allsopp +44 117 945 3470
Walbrook PR +44 20 7933 8780
Tom Cooper / Paul McManus +44 797 122 1972
tom.cooper@walbrookpr.com
Notes to Editors:
Malvern International is a global learning and skills development partner preparing students and learners to meet the demands of a professional life. Courses are delivered on sites in London, Singapore, and Malaysia; with the option of studying across multiple campus' over the duration of the same course; and online through the Malvern Online Academy - making step change education accessible while taking part in the learner's journey to success.
Courses include:
-- Certificate, Diploma and pre-University programs; -- University degree and post-graduate programs; -- Courses for professional examinations; -- Tuition services for secondary school students and English language teaching.
Established in the 1980's and admitted to AIM in 2004, Malvern employs approximately 250 people and delivers a wide range of courses. Malvern's growth strategy is driven by organic growth initiatives complemented by strategic acquisitions. For further investor information go to www.malverninternational.com www.walbrookpr.com/malvern
CHAIRMAN'S STATEMENT
Overview and Group strategy
2017 was a pivotal year in the delivery of Malvern's growth plans. Malvern's ambition is to be a global partner in learning and skills development and, building on its experience and infrastructure, has a clear strategy to achieve this.
Malvern's growth strategy includes:
-- promoting Malvern's globally recognisable brand in education and training;
-- continuing to strengthen management and administrative systems to achieve world class delivery and quality standards;
-- innovating to improve and expand the range of products and services offered; -- extending distribution through our agent network and collaborations;
-- delivering organic growth through making training accessible to an increasingly mobile student population using multi-location and technology options; and
-- making complementary acquisitions to broaden geographical reach and subject range.
Operational highlights
At the end of 2016 we announced our strategic objectives for 2017. I am pleased to report that we made considerable progress in pursuit of these objectives. Highlights included completing collaboration agreements with Playware and Oxford University Press; the acquisition of SAA Global Education Centre Pte Ltd. ('SAA-GE') in Singapore; the appointment of Dr Sam Malafeh as Chief Executive Officer; and post the period end, the launch of the Malvern Online Academy. The strategy really started showing positive results from the second half of 2017 with London leading the growth across the Group. This is a milestone considering the difficult situation London has faced in the last few years. Also, the new systems helped to reduce the cost of the operations and improved the quality of operations across the Group.
The quality standards of training delivery remain a vital measure in our industry. We have put considerable effort into raising our quality standards across the Group and our efforts have been recognised and rewarded. In Singapore we had our EduTrust certification re-instated; in Malaysia we have been classified as a 4 STAR provider (Very Good), and in London we have been assessed by the Independent Schools Inspector as a provider that "Exceeds expectations".
By location, other highlights include:
-- In the UK, London saw significant improvement which has driven a 53% increase in revenue year-on-year. In particular, seasonal summer camps continued to attract more students and the school also managed to attract more of the long term students from the Far East and South America.
-- In Singapore the school regained its EduTrust certificate and there was a consequential improvement in the performance. In addition, the acquisition of SAA-GE, was completed in November 2017. This acquisition provides a platform to attract professional students in the areas of business and accounting.
-- In Malaysia a restructuring of the management team was undertaken and new quality systems were implemented. These changes have resulted in the school obtaining an improved STAR rating of its quality to 4 Star (Very Good). Also since the year end the school has received, for the first time, an international license which allows it to take international students for vocational training. The operation now has the platform to perform significantly better during 2018.
Financial results and business review
Group
In 2017 the total income for the continuing operations of the Group was GBP4.1 million (2016: GBP4.0 millon).
For the 2017 financial year, the Group incurred a loss after tax of GBP701,328 on the continuing business as compared to the loss of GBP1,373,410 in 2016 which included impairment charges of GBP150,000 made against goodwill and intangible assets due to the uncertainty surrounding the EduTrust License during 2016. In FY 2017, there was a reversal of the 2016 impairment against intangible assets of GBP150,000 due to the subsequent award of the EduTrust license for the Singapore operations. Included within losses for the year were the HQ operational costs of GBP0.58 million (2016-GBP0.71 million)
The Group loss for the year was GBP701,328. The 2016 loss of GBP799,610 includes the gain on the sale of shares in the Dublin operations and the six-month operating profit for Dublin totalling GBP573,800.
Hence the net loss per share for the year on a continuing basis for 2017 was 0.66 compared to the 1.84p for 2016 and cash at the end of the year stood at GBP0.48 million (2016: GBP0.12 million). At the year end the Company had outstanding loans of approximately GBP1.0 million (2016: GBP1.22 million) and outstanding convertible loan notes of approximately GBP1.0 million (2016: nil). The Group continues to be well supported by its major shareholders, KSP Investments and CG Corp each of whom provided new loans in the period.
The net assets of the Group as at 31 December 2017 were GBP1.20 million (2016: GBP0.97 million).
Subsidiaries
The European Sector comprises only the UK operations in London. The Asia Sector comprises Singapore and Malaysia. A brief summary of these two sectors is set out below:
United Kingdom (Malvern House)
The business in London has improved dramatically, as the restructuring and reorganisation plans that began in 2015 have started to take effect. Revenue for the year was up 53% to GBP2.02 million (2016: GBP1.32 million). Due to the revenue improvement, EBITDA (Note 2) improved to a positive GBP17,000, as compared to a loss of GBP386,000 in 2016.
In 2018, the performance of London is expected to continue to improve. In addition to the current growing operational revenue streams, there are new initiatives that were commenced in 2017 which will start to contribute in 2018 and beyond. These includes new partnerships with other educational institutes and online revenue generation models.
Post the period end, we are delighted to have announced a partnership agreement with the University of East London which will see Malvern established as an embedded college within UEL, delivering pre-sessional foundation and English language courses for international students at both Degree and Masters levels.
Asia - comprises Singapore and Malaysian operations.
The total revenue for Asian operations in 2017 was GBP1.94 million compared to GBP2.68 million in 2016, a decrease of 27%. If the revenue from the new acquisition (GBP0.34 million) was excluded, on a like for like basis, the comparison would be GBP1.60 million in 2017 compared to GBP2.68 million in 2016, a decrease of 40%. On a like for like basis, the Asian operations incurred an EBITDA loss of GBP0.16 million in 2017, higher than the GBP0.15 million loss that was recorded in 2016. If the new acquisition was included, the EBITDA (Note 2) loss reduces to GBP0.05 million for 2017.
In Singapore revenue increased 119% to GBP0.54 million (2016: GBP0.24 million) due to revenue from the acquisition of SAA-GE of GBP0.34 million. The new acquisition in Singapore possesses a four-year license which affords a greater scope of revenue streams to the Group. Going forward, the new company will be the focal business operation in Singapore with its multi-year license.
The Malaysian operation struggled in 2017 due to the restructuring of management and operations undertaken by local and Group management. Revenue for the year decreased to GBP1.41 million (2016: GBP2.43 million). In 2017 revenue could only be generated in the local market but with the recently acquired international licence sales should increase in 2018. The Board is also looking at the possibility of further expansion of the operations to the different states in Malaysia to gain benefit from the rising educational hub status of Malaysia.
Acquisition of SAA-GE
In November 2017 the Company completed the acquisition of SAA-GE for a consideration of Singapore Dollars (SGD) $500,000 satisfied by the issue of 5,630,350 new ordinary shares of 5p each. SAA-GE has a 30 year history of providing diploma, undergraduate, postgraduate and professional programmes in the accountancy, finance and business related disciplines. It offers preparatory courses leading to ATTS, ACCA, FIA/CAT, ICAEW and Singapore Chartered Accountant qualification, as well as degrees from Plymouth University and the University of London in the UK.
SAA-GE has a reputation for providing high-quality, industry-recognised programmes that have also attracted international students from Japan, China, Vietnam and the Philippines. It continues to achieve high pass-rates and produces top-performing students and prize-winners for the ACCA and FIA/CAT programmes annually. SAA-GE has a four-year EduTrust Certification issued by the Committee for Private Education Singapore.
The acquisition of SAA-GE provides Malvern with fresh opportunities to reach and work with the large local partners, with a substantial student base of more than 1,000 SAA-GE students and provides access to its highly qualified trainers and lecturers. It will also broaden and strengthen Malvern's platform as an international hub for accountancy and finance education, adding to the existing/upcoming offerings in Malaysia and London.
Since its acquisition, SAA-GE's courses are now being more widely promoted through the Group and an improvement in sales is already being seen. In addition, the existing Singapore school has now been relocated to SAA-GE's premises which will bring cost savings.
Dividend
The Board does not propose the payment of a final dividend for the year ended 31 December 2017 (2016: nil).
Outlook and prospects
2017 as a whole, and in particular the second half, has seen a considerable improvement in the Group's performance and an upward trajectory is now discernible. This has been due to three main factors. Firstly, a stronger management has been in place which will be strengthened further as we go forward. Secondly, the agent network has been reorganised successfully. Thirdly, our offerings now cover a wider range of products. In addition to these factors, I am optimistic that the first major acquisition which we completed in November 2017 will have a significantly positive impact not only on the operations of Singapore but also for our global platform. The Board continues to be active in discussions with potential acquisition partners.
With the new acquisition of a four-year EduTrust licensed school in Singapore, the continuing new initiatives in London and the re-introduction of international student intakes in Malaysia, the Group is well positioned to benefit from the expected growth through acquisition and organic growth. We have taken big leaps in reducing our operating losses from GBP1.45 million in 2016 to GBP0.69 million in 2017.
Trading in the current financial year has started well and the Board is now confident that with the reorganised and a more focused Group, the impact on the performance of the Group can only be positive going forward and that it will bring the Group to profitability in 2018.
Acknowledgements
On behalf of the Board I would like to thank all staff members for their continued dedication, commitment, and cooperation during what has been a period of significant change and activity. We look forward to their continuing support going forward in implementing the new plans to bring the Group back to profitability in the years ahead.
We would also like to extend our appreciation and thanks to all our business partners, students, associates and valued shareholders for their support throughout the year and look forward to the same in the years ahead.
Finally, I would like to personally thank all members of the Board for their time and guidance at the Board level and the various committee levels in which they serve.
Gopinath Pillai
Chairman
CONSOLIDATED INCOME STATEMENT
FOR THE YEARED 31 DECEMBER 2017
2017 2016
--------------------------------------- ----------- -------------
GBP GBP
--------------------------------------- ----------- -------------
Revenue
--------------------------------------- ----------- -------------
Sale of services 3,959,506 3,992,581
--------------------------------------- ----------- -------------
Other income 119,383 52,104
--------------------------------------- ----------- -------------
4,078,889 4,044,685
--------------------------------------- ----------- -------------
Cost of services sold 1,847,062 2,210,611
--------------------------------------- ----------- -------------
Salaries and employees' benefits 1,124,708 1,158,797
--------------------------------------- ----------- -------------
Amortisation of brand, licences
and trademarks 158,583 158,333
--------------------------------------- ----------- -------------
Depreciation of plant and equipment 63,880 77,579
--------------------------------------- ----------- -------------
Other operating expenses 1,744,500 1,744,219
--------------------------------------- ----------- -------------
Impairment of goodwill - -
--------------------------------------- ----------- -------------
Impairment of intangible assets (150,000) 150,000
Impairment of loans and receivables (17,822) -
--------------------------------------- ----------- -------------
Operating loss (692,022) (1,454,854)
--------------------------------------- ----------- -------------
Share of results of associated
companies and joint ventures - 49,898
--------------------------------------- ----------- -------------
Finance costs (14,690) 61,919
--------------------------------------- ----------- -------------
Loss before income tax (706,712) (1,343,037)
--------------------------------------- ----------- -------------
Income tax charge 5,384 (30,373)
--------------------------------------- ----------- -------------
Loss for the year from continuing
activities (701,328) (1,373,410)
--------------------------------------- ----------- -------------
Profit for the year from discontinued
activities - 573,800
--------------------------------------- ----------- -------------
Loss for the year (701,328) (799,610)
--------------------------------------- ----------- -------------
Attributable to:
--------------------------------------- ----------- -------------
Equity holders of the Company (701,328) (799,610)
--------------------------------------- ----------- -------------
Non-controlling interest - -
--------------------------------------- ----------- -------------
(701,328) (799,610)
--------------------------------------- ----------- -------------
2017 2016
restated
------------------------------------------ ------- ----------
Loss per share on continuing
activities (in pence) ------------------------------------------ ------- ---------- Basic (0.66) (1.84) ------------------------------------------ ------- ---------- Diluted (0.66) (1.84) ------------------------------------------ ------- ---------- Profit /(loss) per share on discontinued activities (in pence) ------------------------------------------ ------- ---------- Basic 0.00 0.77 ------------------------------------------ ------- ---------- Diluted 0.00 0.77 ------------------------------------------ ------- ---------- Loss per share attributable to equity holders of the Company (in pence) -------------------------------- ------- ------- Basic (0.66) (1.07) -------------------------------- ------- ------- Diluted (0.66) (1.07) -------------------------------- ------- -------
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEARED 31 DECEMBER 2017
2017 2016
-------------------------------- ---------- ----------
GBP GBP
-------------------------------- ---------- ----------
Loss for the year (701,328) (799,610)
----------------------------------- ---------- ----------
Foreign currency translation
movements (266,067) (21,071)
----------------------------------- ---------- ----------
Total comprehensive income for
the year (967,395) (820,681)
----------------------------------- ---------- ----------
Attributable to:
-------------------------------- ---------- ----------
Equity holders of the parent (967,395) (820,681)
----------------------------------- ---------- ----------
Non-controlling interest - -
-------------------------------- ---------- ----------
Total comprehensive income for
the year (967,395) (820,681)
----------------------------------- ---------- ----------
STATEMENTS OF FINANCIAL POSITION
AS AT 31 DECEMBER
Group
--------------------------- --------------------------
2017 2016
--------------------------- ------------ ------------
GBP GBP
--------------------------- ------------ ------------
TOTAL ASSETS
--------------------------- ------------ ------------
Non-Current Assets
--------------------------- ------------ ------------
Property, plant and
equipment 245,956 188,835
--------------------------- ------------ ------------
Intangible assets 2,382,291 2,144,264
--------------------------- ------------ ------------
Development Expenditure 1,505 1,505
--------------------------- ------------ ------------
Goodwill 474,207 1,312
--------------------------- ------------ ------------
3,103,959 2,335,916
--------------------------- ------------ ------------
Current Assets
--------------------------- ------------ ------------
Inventories 6,100 3,129
--------------------------- ------------ ------------
Trade receivables 398,642 460,939
--------------------------- ------------ ------------
Other receivables
and
prepayments 948,938 619,993
--------------------------- ------------ ------------
Tax recoverable - 32,539
--------------------------- ------------ ------------
Amounts due from
joint ventures - 27,841
--------------------------- ------------ ------------
Cash and cash equivalents 479,565 116,541
--------------------------- ------------ ------------
1,833,245 1,260,982
--------------------------- ------------ ------------
Total Assets 4,937,204 3,596,898
--------------------------- ------------ ------------
EQUITY AND LIABILITIES
--------------------------- ------------ ------------
Non-Current Liabilities
--------------------------- ------------ ------------
Financial liabilities
- Leasing 20,320 24,447
--------------------------- ------------ ------------
Financial liabilities 159,178 -
- Term Loan
--------------------------- ------------ ------------
Financial liabilities 995,813 -
- Convertible Loan
Note
--------------------------- ------------ ------------
1,175,311 24,447
--------------------------- ------------ ------------
Current Liabilities
--------------------------- ------------ ------------
Trade payables 277,151 170,675
--------------------------- ------------ ------------
Deferred income 668,775 386,039
--------------------------- ------------ ------------
Other payables and
accruals 748,072 809,824
--------------------------- ------------ ------------
Amounts due to related
parties 835,853 1,223,256
--------------------------- ------------ ------------
Financial liabilities 31,524 4,823
--------------------------- ------------ ------------
Provision for income
tax - 9,626
--------------------------- ------------ ------------
2,561,375 2,604,243
--------------------------- ------------ ------------
Total liabilities 3,736,686 2,628,690
--------------------------- ------------ ------------
Equity attributable
to equity
holders of the Company
--------------------------- ------------ ------------
Share capital 7,919,356 6,823,838
--------------------------- ------------ ------------
Share premium 896,111 896,111
--------------------------- ------------ ------------
Retained earnings (8,629,151) (7,927,823)
--------------------------- ------------ ------------
Translation reserve 739,455 1,005,522
--------------------------- ------------ ------------
Capital reserve 274,747 170,560
--------------------------- ------------ ------------
Total equity 1,200,518 968,208
--------------------------- ------------ ------------
Total Equity and
Liabilities 4,937,204 3,596,898
--------------------------- ------------ ------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEARED 31 DECEMBER 2017
Share Share Retained Translation Capital Convertible Attributable Non-
Capital Premium Earnings Reserve Reserve Loan To Equity controlling Total
Reserve Holders Interests
of the
Company
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
GBP GBP GBP GBP GBP GBP GBP GBP GBP
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Balance at 1
January 2016 5,362,491 896,111 (7,107,142) 965,602 170,560 - 287,622 (108,000) 179,622
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Loss for the
year - - (820,681) - - - (820,681) 108,000 (712,681)
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Total other
comprehensive
income - - - 39,920 - - 39,920 - 39,920
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Total
comprehensive
income for the
year - - (820,681) 39,920 - - (780,761) 108,000 (672,761)
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
New Share Issues 1,461,347 - - - - - 1,461,347 - 1,461,347
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Balance at 31
December 2016
restated/ 1
January 2017 6,823,838 896,111 (7,927,823) 1,005,522 170,560 - 968,208 - 968,208
------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
Loss for the
year - - (701,328) (701,328) (701,328) ------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------ Total other comprehensive income (266,067) (266,067) (266,067) ------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------ Total comprehensive income for the year (701,328) (266,067) 104,187 (967,395) (967,395) ------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------ New Share Issues 1,095,518 1,095,518 1,095,518 ------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------ Balance at 31 December 2017 7,919,356 896,111 (8,629,151) 739,455 170,560 104,187 1,200,518 - 1,200,518 ------------------- ----------- --------- ------------- ------------ --------- ------------ ------------- ------------ ------------
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARED 31 DECEMBER 2017
2017 2016
restated
-------------------------------------- ------------ ------------
GBP GBP
-------------------------------------- ------------ ------------
Cash Flows from Operating Activities
-------------------------------------- ------------ ------------
Loss before income tax from
continuing activities (706,712) (1,343,037)
--------------------------------------- ------------ --------------
Profit/(loss) before income
tax from discontinued activities - 573,800
--------------------------------------- ------------ --------------
Adjustments for:
-------------------------------------- ------------ --------------
Amortisation of intangible
assets 158,583 158,333
--------------------------------------- ------------ --------------
Depreciation of property,
plant and equipment 63,880 77,579
--------------------------------------- ------------ --------------
Impairment of property, plant 2,169 -
and equipment
-------------------------------------- ------------ --------------
Impairment of intangible assets (150,000) 150,000
--------------------------------------- ------------ --------------
Loss on disposal of plant
and equipment - 43,533
--------------------------------------- ------------ --------------
Non-cash elements of profit
on discontinued activities - (308,082)
--------------------------------------- ------------ --------------
Interest expense (14,693) 61,919
--------------------------------------- ------------ --------------
Others - -
-------------------------------------- ------------ --------------
(646,773) (585,955)
-------------------------------------- ------------ --------------
Changes in working capital:
-------------------------------------- ------------ --------------
Receivables (6,516) 120,356
--------------------------------------- ------------ --------------
Payables (347,588) (817,411)
--------------------------------------- ------------ --------------
Inventories (2,970) 3,424
--------------------------------------- ------------ --------------
Related parties and associated
companies (1,173,550) 683,662
--------------------------------------- ------------ --------------
(199,084) (595,924)
-------------------------------------- ------------ --------------
Taxation - 7,797
--------------------------------------- ------------ --------------
Net cash used from operating
activities (199,084) (588,127)
--------------------------------------- ------------ ------------
Cash Flows from Investing Activities
-------------------------------------- ------------ ------------
Interest received 3 -
-------------------------------------- ------------ ------------
Dividends received
Purchases of property, plant - -
and equipment (28,654) (45,899)
--------------------------------------- ------------ ------------
Acquisition of subsidiary (82,531) -
-------------------------------------- ------------ ------------
Net cash used in investing
activities (111,182) (45,899)
--------------------------------------- ------------ ------------
Cash Flows from Financing Activities
--------------------------------------- ------------ ------------
Interest paid (14,694) (61,919)
-------------------------------------- ------------ --- -----------
Repayment of term loan 185,708 -
-------------------------------------- ------------ --- -----------
Finance leases (3,956) (9,605)
New Share Issues [1] 250,000 428,992
-------------------------------------- ------------ --- -----------
Net cash generated by/(used
in) financing activities 417,067 357,468
-------------------------------------- ------------ --- -----------
Effect of foreign exchange
rate changes on
consolidation (150,474) (23,169)
-------------------------------------- ------------ --- -----------
Net decrease in cash and cash
equivalents 354,495 (299,727)
-------------------------------------- ------------ --- -----------
Cash and cash equivalents at
the beginning of the
Year 116,541 416,268
-------------------------------------- ------------ --- -----------
Cash and cash equivalents
at the end of the year 471,036 116,541
-------------------------------------- ------------ --- -----------
[1] This includes the cash portion of the capital injection. An amount of GBP408,000 was capitalized from shareholder loans.
NOTES
1. General Information
Malvern International plc (the "Company") is a public limited liability company incorporated in England and Wales on 8 July 2004. The Company was admitted to AIM on 10 December 2004. Its registered office is Witan Gate House, 500-600 Witan Gate West, Milton Keynes MK9 1SH and its principal place of business is in Singapore. The registration number of the Company is 05174452.
The principal activities of the Company are that of investment holding and provision of educational consultancy services. The principal activity of the group is to provide an educational offering that is broad and geared principally towards preparing students to meet the demands of business and management. There have been no significant changes in the nature of these activities during the year.
2. Segmental Information
All revenue and profit before taxation arises from operations in the education sector. Reportable segments are based on the geographical area where operations are based comprising Europe (UK) and South East Asia/Middle East (Malaysia and Singapore). These segments represent the respective sub-groups of Malvern House Group Limited (Europe) and Malvern Singapore (South East Asia/Middle East).
The segmental analysis is as follows:
Europe Asia Total
2017 GBP GBP GBP
=================================== ============ ============ ============
Revenue from external customers 2,017,681 1,941,825 3,959,506
Depreciation, write offs
and amortisation 82,500 (10,036) 72,464
=================================== ============ ============ ============
Loss before taxation (258,565) (448,147) (706,712)
Taxation charge - 5,384 5,384
=================================== ============ ============ ============
Profit on discontinued activities - - -
Loss for the year (258,565) (442,763) (701,328)
=================================== ============ ============ ============
Segmental assets 1,207,264 3,729,940 4,937,204
=================================== ============ ============ ============
Segmental liabilities (1,263,520) (2,473,166) (3,736,686)
Additions to non-current
assets 36,000 768,057 804,057
=================================== ============ ============ ============
2016-restated
Revenue from external customers 1,314,904 2,677,677 3,992,581
=================================== ============ ============ ============ Depreciation, write offs and amortisation (92,852) (293,060) (385,912) Loss before taxation (528,355) (814,683) (1,343,037) =================================== ============ ============ ============ Taxation charge - (30,373) (30,373) Profit on discontinued activities 573,800 - 573,800 =================================== ============ ============ ============ Profit/Loss for the year 45,445 (845,055) (799,610) Segmental assets 1,018,926 2,577,972 3,596,898 Segmental liabilities (1,165,073) (1,463,617) (2,628,690) =================================== ============ ============ ============ Additions to non-current assets 3,653 42,246 45,899 =================================== ============ ============ ============
Alternative performance measures reconciliation (EBITDA excluding HQ costs and discontinued activities)
Europe Asia Total
2017 (including SAA acquisition GBP GBP GBP
in the year)
================================= ========== ========== ==========
Loss for the year (258,565) (442,763) (701,328)
Interest 19 14,691 14,690
================================= ========== ========== ==========
Tax - (5,384) (5,384)
Depreciation 15,000 48,880 63,880
================================= ========== ========== ==========
Amortisation 67,500 91,083 158,583
================================= ========== ========== ==========
Impairment reversal - (150,000) (150,000)
EBITDA (incl. HQ costs and
discontinued activities) (176,046) (443,513) (619,559)
Discontinued Activities - - -
Others - HQ Costs allocation 193,178 392,114 585,292
================================= ========== ========== ==========
EBITDA (excl. HQ costs and
discontinued activities) 17,132 (51,399) (34,267)
================================= ---------- ---------- ----------
2016 GBP GBP GBP
================================= ========== ========== ==========
Loss for the year 45,445 (845,055) (799,610)
Interest (65,018) 3,099 (61,919)
================================= ========== ========== ==========
Tax - 30,373 30,373
================================= ========== ========== ==========
Depreciation 10,352 67,227 77,579
================================= ========== ========== ==========
Amortisation 82,500 75,833 158,333
================================= ========== ========== ==========
Impairment charge - 150,000 150,000
================================= ========== ========== ==========
EBITDA (incl. HQ costs and
discontinued activities) 73,279 (518,523) (445,244)
================================= ========== ========== ==========
Discontinued Activities (573,800) - (573,800)
================================= ========== ========== ==========
Others - HQ Costs allocation 114,784 369,085 483,869
================================= ========== ========== ==========
EBITDA (excl. HQ costs and
discontinued activities) (385,737) (149,438) (535,175)
================================= ========== ========== ==========
Note that the Segmental liabilities figure for South East Asia is shown as a net asset due to the treatment of the amount due from Europe to South East Asia for funding being shown as a liability in the former and an asset in the latter.
Group HQ costs of GBP585,292 (2016-GBP483,869) were allocated to each segment based on the revenue for each segment. In 2017, the allocation was 51% (2016-33%) for Europe and 49% (2016-67%) for Asia.
3. Earnings/(Loss) Per Share
The basic and diluted earnings/(loss) per share on continuing activities was based on the loss attributable to shareholders of GBP701,328 (2016: loss of GBP1,373,410) and the weighted average number of ordinary shares in issue during the year of 105,708,809 shares (2016: 74,592,510 shares).
The basic and diluted earnings/(loss) per share on discontinued activities was based on the profit attributable to shareholders of GBP0 (2016: GBP573,800) and the weighted average number of ordinary shares in issue during the year of 105,708,809 shares (2016: 74,592,510 shares).
The basic and diluted earnings/(loss) per share attributable to equity holders of the Company was based on the loss to shareholders of GBP701,328 (2016: loss of GBP799,610) and the weighted average number of ordinary shares in issue during the year of 105,708,809 shares (2016: 74,592,510 shares).
Calculations for dilutive EPS have not been made in respect of the convertible loan notes on the basis the impact would be anti-dilutive.
There were no outstanding options in 2017
4. Annual Report
The Annual Report will be sent to shareholders shortly. Additional copies will be available to the public, free of charge, on the Company's website www.malverninternational.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR UNAORWSASUUR
(END) Dow Jones Newswires
April 27, 2018 02:00 ET (06:00 GMT)
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