Shares in Malvern International PLC (AIM:MLVN) fell 17% after the company warned that revenue from its Junior English Language Training (ELT) division will fall short of previous expectations.
While trading in the company’s Adult ELT and University Pathway divisions remains in line with forecasts, the Junior ELT unit, which is heavily weighted towards the summer period, has been hit by weaker-than-expected bookings from China.
The company had previously guided for revenue of £7.5 million from the division this year, but it now says that target will not be met.
The drop in Chinese bookings is being attributed to ongoing global trade tensions. Malvern noted improving performance in other markets, particularly Latin America and Turkey, supported by earlier sales and marketing efforts.
To soften the impact, the group is using flexible contracts for accommodation and staffing to help manage margins.
Despite the downgrade to growth in one part of the business, Malvern said overall trading remains on track, with university pathway bookings for the September intake progressing well.
The company is continuing to pursue new university partnerships to build out its broader offering.
The stock fell 3.5p to 17p.