**Summary of Malvern International PLC Final Results for the Nine Months Ended 30 September 2025**
**Financial Highlights**
**Revenue** Underlying and statutory revenue (excluding university commission income) for the nine months to September 2025 was £14.12 million, compared to £14.74 million in FY2024.
**Operating Profit** Underlying operating profit increased to £0.38 million (FY2024: £0.22 million), driven by growth in Higher Education and Juniors segments.
**Underlying Profit** Underlying profit was £0.09 million (FY2024: loss £0.13 million), with a profit per share of 0.39 pence (FY2024: loss 0.53 pence).
**Statutory Loss** A statutory loss of £1.29 million (FY2024: loss £0.15 million) was recorded due to a £1.42 million impairment of goodwill related to the closure of Adult English Language Teaching (ELT) operations.
**Debt Reduction** Group debt decreased from £1.86 million in FY2024 to £1.45 million, with ongoing repayment of the Term Loan.
**Cash Position** Net cash generated from operating activities was £1.65 million (FY2024: £0.17 million), and the cash balance at period-end was £1.89 million (FY2024: £1.39 million).
**Operational Highlights**
**University Pathways** Secured three new long-term university partnership contracts, with a fourth awarded post-period end, positioning the company for growth in this segment.
**Juniors Division** Strong summer performance across nine centers, with revenue of £6.52 million from 3,471 students.
**ELT Restructuring** Closed Adult ELT operations in March 2026, focusing on scaling the Juniors division and higher-margin segments.
**Strategic Investments** Continued investment in people, sales, marketing, compliance, and admissions to support new contracts and scale operations.
**Strategic Developments**
**University Partnerships** Established partnerships with the University of Cumbria (10 years), University of Wolverhampton (5 years), and Liverpool Hope University (5 years), with student intakes starting in 2026.
**Fundraising** Raised £1.95 million (net of expenses) in February 2026 to support scaling of new contracts and operational growth.
**Financial Reporting Change** Shifted reporting date to 30 September to align with the UK university academic year, providing clearer performance assessment.
**Outlook**
**FY2026** Expected to be a year of preparation and investment, with a focus on scaling new Pathway partnerships. Revenue and margins may be impacted by transitional changes, and the year is anticipated to be loss-making at the operating level.
**FY2027** Projected return to profitability as new partnerships contribute significantly, with annual cost savings of £0.30-£0.60 million from ELT closure.
**Long-Term Growth** Strengthened by long-term contracts, a capital-light model, and a proven track record, the company aims to scale student recruitment, improve academic outcomes, and deliver sustainable shareholder value.
**Leadership and Governance**
**CEO Richard Mace** emphasized the company’s resilience, diversification, and strategic focus on high-quality, long-term partnerships.
**Chairman Mark Elliott** highlighted the successful securing of new contracts, strategic reshaping of ELT, and the company’s position for accelerated growth.
**Conclusion**
Malvern International PLC has made significant strides in securing long-term university partnerships, restructuring its ELT business, and positioning itself for scalable growth. Despite short-term challenges, the company’s strategic investments, fundraising, and focus on higher-margin segments are expected to drive profitability and sustainable growth from FY2027 onwards.
| Metric | 9 Months Ended 30 Sep 2025 | 12 Months Ended 31 Dec 2024 | Change |
|---|---|---|---|
| Revenue (Underlying & Statutory) | £14.12m | £14.74m | -4.2% |
| Underlying Operating Profit | £0.38m | £0.22m | +72.7% |
| Underlying Profit | £0.09m | Loss £0.13m | +£0.22m |
| Statutory Loss | £1.29m | Loss £0.15m | -760% |
| Group Debt | £1.45m | £1.86m | -22.0% |
| Net Cash from Operating Activities | £1.65m | £0.17m | +870.6% |
| Cash Balance | £1.89m | £1.39m | +36.0% |