Malvern International PLC (AIM:MLVN), a global learning and skills development partner, has said it expects to report a 170% year-on-year increase in revenue for the year ended 31 December 2022.
In a trading update for the period, Malvern said its preliminary unaudited assessment showed revenue of approximately £6.5mln, compared to £2.4mln in the previous year. Additionally, the company's loss before tax is expected to be significantly reduced, to around £1.1mln, compared to £1.6mln in the prior year.
The group said its unaudited net debt as of 31 December 2022 was £4.4mln, including lease liabilities of £3.1mln, which is approximately £0.7mln better than management's expectations.
Malvern said the second half of 2022 saw significant growth in revenue compared to the first half of the year and the second half of 2021, which were both impacted by the Covid-19 pandemic and travel restrictions. With borders opening and restrictions lifting, the company saw a return to pre-pandemic student numbers in adult language schools and the first junior students since 2019.
The growth in revenue was driven by the adult English Language Training (ELT) segment, it noted, which increased by 150% to approximately £3.1mln, largely from the MENA and Latin American markets. The company's junior program also returned with revenue of approximately £1.4mln, with the majority of students coming from Italy.
The company has continued to build its sales and marketing capabilities and is working with the biggest agencies in Brazil, Saudi Arabia, Kuwait and Italy, with a strong pipeline of bookings for the first quarter of 2023.
The University Pathways segment also continued to grow, with a 50% increase in revenue year-over-year to approximately £2.0mln, driven by a big increase in students from South Asia. The January intake for University Pathways was up over 200% compared to the previous year, with 245 students enrolled, significantly ahead of management's expectations, Malvern said.
"The team has worked hard to grow University Pathway student numbers in 2022. January's intake represents a great start to 2023 and strengthens our revenue visibility for H1 2023, with a combination of pre-booked income from the University Pathway courses and no COVID-19 restrictions affecting students' ability to travel," said Mark Elliott, chairman of Malvern in the statement.
"The board is increasingly confident for Malvern's prospects and expects it achieve growth in all divisions in 2023," he concluded.