**Summary of Malvern International PLCs Half-Year/Interim Report (H1 2025)**
**Financial Performance**
**Revenue Growth** Revenues (excluding agent commission) increased by 25% to £6.36 million (H1 2024: £5.10 million), driven by a 30% rise in student numbers at the University of East London (UEL) to 1,012 students.
**Profitability** Underlying operating profit rose to £0.57 million (H1 2024: £0.39 million), with statutory profit after tax at £0.38 million (H1 2024: £0.14 million). Earnings per share increased to 1.54p (H1 2024: 0.57p).
**Cash and Debt** Cash balances improved to £2.48 million (H1 2024: £1.31 million) due to earlier invoice payments. Group debt reduced to £1.58 million (H1 2024: £2.02 million).
**Strategic Progress**
**University Pathways** Secured new contracts with the Universities of Cumbria and Wolverhampton, with the first cohorts starting in September/October 2025. A one-year contract extension was agreed with UEL, and a five-year partnership with Liverpool Hope University was announced post-period end.
**Junior ELT** Student numbers increased by 2% to 3,471, with revenue expected to grow by 8% to £6.50 million in FY25. Approximately 95% of revenues will be recognized in H2 2025.
**Investment** Continued investment in partnerships, people, systems, and processes to improve sales-to-admissions ratios and student outcomes.
**CEO Commentary (Richard Mace)**
Highlighted growth in revenues and student numbers, particularly in University Pathways.
Emphasized strategic progress in securing new university partnerships, diversifying revenue streams, and positioning Malvern for long-term growth.
Noted that new partnerships will require upfront investment but are expected to significantly enhance profitability from FY2027.
**Outlook**
Anticipated 600 international students to start courses in September/October 2025, compared to 509 in 2024.
Focus on scaling new university partnerships, negotiating a long-term contract with UEL, building the Juniors business, and exploring options for Adult ELT.
Operational gearing from new partnerships is expected to drive profit growth from September 2026, significantly improving Group profitability by FY2027.
**Conclusion**
Malvern International PLC demonstrated strong H1 2025 performance with revenue and profit growth, driven by strategic university partnerships and operational efficiency. The company is well-positioned for future growth, with a focus on scaling new partnerships and diversifying revenue streams, despite short-term investment requirements.