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Malvern International Shares Drop As Malaysia Hobbles Interim Growth

[ 13 Sep 2018 11:17 ]

LONDON (Alliance News) - Shares dropped in Malvern International PLC despite a narrowed interim loss and revenue growth, as the group's underperforming Malaysia business is expected to remain that way for the rest of 2018.

Shares in the UK education firm fell 18% at 6.34 pence on Thursday.

For the six months to the end of June, pretax loss narrowed to GBP371,000 from GBP395,000 the year before, on revenue that grew substantially to GBP2.6 million from GBP1.7 million.

Revenue growth was attributed to strong growth in the UK and Singapore, where in the former, revenue rose to GBP1.1 million from GBP770,000 due to an improved operating performance.

Singapore saw the highest growth, jumping to GBP1.0 million from GBP74,000 the prior year, driven by the acquisition of SAA Global Education Centre Pte Ltd in November for SGD500,000, or GBP278,717 and its integration into the group.

However Malvern's Malaysia business saw a 30% drop in revenue to GBP561,000 from GBP807,000 the year before, due to a continued rebuild strategy and increased marketing. The group said this underperformance is expected to carry on into the second half of 2018.

"Private education is a volatile and competitive business. However, we have several positive factors which enable us to meet the challenges. Firstly, we operate in multiple geographies which provide opportunities to leverage on each other. Being in London and Singapore we are, from the branding point of view, in two prime locations," said Chairman Gopinath Pillai.

"Secondly, we have a proactive management which we are strengthening further. Thirdly, our strategy for growth is both organic and through acquisitions and companies we acquire, we insist, must have managements that share our vision and want to stay with us," Pillai added.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.


Malvern International Shares Drop As Malaysia Hobbles Interim Growth - Alliance News

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