TIDMMLVN
RNS Number : 3833O
Malvern International PLC
18 August 2017
AIM: MLVN
18 August 2017
Malvern International PLC
("MLVN" or the "Company" and together with its subsidiaries,
the" Group")
Half year results for the six months ended 30 June 2017
Key Points
-- Revenues on continuing activities of GBP1.65m (2016: GBP2.07m)
-- Operating loss of GBP0.39m (2016: loss of GBP0.46m)
-- Loss before tax of GBP0.39m (2016: loss of GBP0.46m)
-- Loss after tax from continuing activities of GBP0.39m (2016: loss of GBP0.48m)
-- Loss per share on continuing activities of 0.39p (2016: 0.77p)
-- London has started to recover from the severe losses it has
incurred in previous years to a small loss for the first half.
-- Singapore received its EduTrust certification from the
Committee of Private Education in July 2017 and initiatives to
capitalize on the re-certification have already been
implemented.
-- Malaysia, while down in the first-half due to correction and
improvement in quality assurance and international student issues,
is now showing signs of improvement with a better outlook expected
for the second half of this financial year.
-- In the first half of 2017, loans amounting to GBP118,000 from
a major shareholder of the Group were converted into 2,360,000 new
ordinary shares at a conversion price of 5p per share.
Gopinath Pillai, Chairman, stated,
"Two positive developments which have taken place in the Malvern
Group in the first half of the year gives me reason to be
optimistic. First, London which had been incurring heavy losses is
showing strong signs of a recovery which is likely to become more
obvious in the second half of the year. Second, Singapore which had
lost its EduTrust license four years ago has now been granted a new
license by the Committee for Private Education in Singapore. I
expect this to have a significant positive impact in the coming
months on Singapore's operations going forward."
Enquiries:
Malvern International www. malverninternational.com
PLC
Haider Sithawalla-CEO
Sam Malafeh -Deputy +65 6412 0733
CEO +65 8386 0155
WH Ireland Limited (NOMAD) Nominated Adviser
& Broker
Mike Coe +44 (0) 117 945 3470
CHAIRMAN'S STATEMENT
Two positive developments which have taken place in the Malvern
Group in the first half of the year gives me reason to be
optimistic. First, London which had been incurring heavy losses is
showing strong signs of a recovery which is likely to become more
obvious in the second half of the year. Second, Singapore which had
lost its EduTrust license four years ago has now been granted a new
license by the Committee for Private Education in Singapore. I
expect this to have a significant positive impact in the coming
months on Singapore's operations going forward.
A brief review of the operations of London, Singapore and
Malaysia is given below:
United Kingdom
-- London's revenue has started to grow and new registrations
indicate more significant growth in the second half of the year.
For the first half, revenue was at GBP770,000 (2016: GBP658,000)
with an operating loss at GBP43,000(2016: GBP133,000).
South East Asia
-- Singapore reported a small loss of GBP51,000 (2016:
GBP96,000) on reported revenue of GBP109,000 (2016: GBP124,000) due
to the smaller operational size but the new EduTrust license
obtained in July 2017 will improve the fortunes of Singapore. We
can now bring in foreign students to school in Singapore which has
not been possible for the last four years.
-- Malaysia struggled in the first half as we continued with the
correction in quality assurance and international student issues
but the second half's outlook is positive as we resolve all
outstanding issues relating to the school. Because of these
changes, better quality reports are expected from the ministry in
the coming months. New programs and courses have also been
implemented. Revenue reported in Malaysia dropped from the
GBP1,276,000 as reported in 2016 to GBP772,000 in the first half of
2017.
Financial Results
The Group's revenues on continuing activities for the six months
in 2017 declined by 19% to GBP1.7m (2016: GBP2.1m) , mainly due to
the decrease in revenue in Malaysia. However, the Group's efforts
to better manage its operating costs and offer new courses with
better margins have resulted in the Group's loss before tax for the
six months from continuing operations decreasing to GBP0.39m (2016:
GBP0.46m).
No impairment of intangible assets was considered necessary for
the first six month as we had already undertaken an extensive
review and impairment charge during 2016 and we are confident that
the plans and strategies we have in place for the second half of
2017 and 2018 will drive the Group's business positively.
The basic and diluted loss per share on the continuing business
was (0.39p) (2016: 0.77p).
Net cash at the end of the year saw a slight drop at GBP0.36m
(2016: GBP0.45m).
Outlook
The outlook remains positive for the Group as the initiatives we
have taken and implemented should provide for a more stable second
half with real positive results being generated in 2018. Needless
to say, shareholders' support is a key resource of the
organisation. I thank all the shareholders for their patience and
continued support.
Gopinath Pillai
Chairman
UNAUDITED CONSOLIDATED INCOME STATEMENT
Six months Six months Twelve
to 30 June to 30 June months
2017 2016 to 31
December
2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
(restated) (restated)
Revenues
Sales of services and
other revenue 1,652 2,067 3,993
Cost of services sold
& operating expenses (2,046) (2,525) (5,448)
Operating (loss) / profit (394) (458) (1,455)
(Loss) / profit from operations (394) (458) (1,455)
Share of results of associated
companies and joint venture - - 50
Finance costs (1) (2) 62
(Loss) / profit before
taxation (395) (460) (1,343)
Income tax credit / (charge) - (23) (30)
(Loss) / profit for the
period / year from continuing
activities (395) (483) (1,373)
(Loss) / profit for the
period / year from discontinued
activities - 32 574
(Loss) / profit for the
period / year (395) (451) (799)
Minority interests - (15) -
----------------------- -------------------------- ---------------------
(Loss) / profit attributable
to equity holders (395) (466) (799)
(Loss) / earnings per
share on total activities Pence Pence Pence
Basic (0.39) (0.72) (1.07)
Diluted (0.39) (0.72) (1.07)
(Loss) / earnings per
share on continuing activities Pence Pence Pence
Basic (0.39) (0.77) (1.84)
Diluted (0.39) (0.77) (1.84)
(Loss) / earnings per
share on discontinued
activities Pence Pence Pence
Basic - 0.05 0.77
Diluted - 0.05 0.77
UNAUDITED STATEMENT OF FINANCIAL POSITION
As at 30 As at 30 As at
June 2017 June 2016 31 December
2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Fixed assets
Intangible assets 2,146 2,452 2,147
Tangible assets 183 312 189
Investment in joint
venture - 90 -
2,329 2,854 2,336
-------------------------- ----------------------------- ---------------------
Current assets
Inventory 3 7 3
Debtors 1,416 1,875 1,141
Cash at bank and in
hand 360 454 117
-------------------------- ----------------------------- ---------------------
1,779 2,336 1,261
Total assets 4,108 5,190 3,597
========================== ============================= =====================
Creditors
Amounts falling due
within one year (2,703) (4,023) (2,462)
Net current liabilities (924) (1,687) (1,201)
-------------------------- ----------------------------- ---------------------
Non-current liabilities
Finance lease (23) (8) (24)
Deferred taxation - - -
-------------------------- ----------------------------- ---------------------
(23) (8) (24)
Total liabilities (2,726) (4,031) (2,486)
-------------------------- ----------------------------- ---------------------
Equity attributable
to equity holders of
the Company
Share capital 7,538 6,217 6,824
Share premium 896 896 896
Reserves (7,052) (5,886) (6,609)
-------------------------- ----------------------------- ---------------------
1,382 1,227 1,111
Minority interest in
equity - (68) -
1,382 1,159 1,111
-------------------------- ----------------------------- ---------------------
Total equity and liabilities 4,108 5,190 3,597
========================== ============================= =====================
UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
1 Share Share Retained Translation Capital Total other Attributable
Capital Premium Earnings Reserve Reserve reserves To Equity
Holders of the
Company
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
2 GBP GBP GBP GBP GBP GBP GBP
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
Balance at 1
January
2017 6,823,838 896,111 (7,785,081) 1,005,522 170,560 (6,608,999) 1,110,950
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
(Loss) for the
period (393,906) (393,906) (393,906)
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
Total other
comprehensive
income (48,906) (48,906) (48,906)
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
Total comprehensive
income for the
period (393,906) (48,906) (442,812) (442,812)
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
New shares 714,001 714,001
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
Total transaction
with owners 714,001 714,001
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
Balance at 30
June 2017 7,537,839 896,111 (8,178,987) 956,616 170,560 (7,051,811) 1,382,139
-------------------- ---------- --------- ------------ ------------ --------- ------------ --------------------
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
Six months Six months Twelve
to 30 June to 30 June months
2017 2016 to 31
December
2016
GBP'000 GBP'000 GBP'000
Unaudited Unaudited Audited
Cash Flows from operating
activities
(Loss) / profit before
income tax from continuing
activities (395) (460) (1,343)
(Loss) / profit before
income tax from discontinued
activities - - 574
Adjustments for:
Depreciation & amortisation 34 126 236
Loss on disposal of
plant and equipment - (15) 42
Impairment of intangible
assets - - 150
Interest paid (1) 3 62
Non cash elements of
profit on discontinued
activities - - (308)
Share of results of
associated companies
and joint venture - - 1
(362) (346) (586)
------------------------- -------------------------- -------------------------
Changes in working capital
(Increase) / decrease
in debtors (203) (431) 120
(Increase) / decrease
in creditors 359 (84) (816)
(Increase) / decrease
in inventories - 2 3
(Increase) / decrease
in related parties 124 530 684
Cash flows from operating
activities (82) (329) (595)
------------------------- -------------------------- -------------------------
Taxation
Taxes recovered / (paid) (39) 15 7
Net cash used in operating
activities (121) (314) (588)
------------------------- -------------------------- -------------------------
Cash flows from investing
activities
Purchase of property,
plant and equipment (29) - (46)
Purchase of intangible
fixed assets - - -
(29) - (46)
------------------------- -------------------------- -------------------------
Cash flows from financing
activities
Dividend paid to
shareholders-unclaimed - - -
(Decrease) / increase
in finance lease liabilities (2) (9) (10)
Interest Paid 1 (2) (62)
New Share Issue 440 - 429
Repayment of term loan - (3) -
439 (14) 357
------------------------- -------------------------- -------------------------
Effect of foreign exchange
rate changes on consolidation (46) 366 (22)
------------------------- -------------------------- -------------------------
Net increase in cash
and cash equivalents 243 38 (299)
Cash and cash equivalents
at beginning of period
/ year 117 416 416
Cash and cash equivalents
at end of period / year 360 454 117
------------------------- -------------------------- -------------------------
NOTES TO THE UNAUDITED INTERIM FINANCIAL INFORMATION FOR THE SIX
MONTHS ENDED
1. General information
Malvern International plc (the "Company") is a public limited
liability company incorporated in England and Wales on 8 July 2004.
The Company was admitted to AIM on 10 December 2004. Its registered
office is Witan Gate House, 500-600 Witan Gate West, Milton Keynes
MK9 1SH and its principal place of business is in Singapore. The
registration number of the Company is 05174452.
The principal activities of the Company are that of investment
holding and provision of educational consultancy services. The
principal activity of the group is to provide an educational
offering that is broad and geared principally towards preparing
students to meet the demands of business and management. There have
been no significant changes in the nature of these activities
during the period
2. Adoption of new and revised International Financial Reporting Standards
No new IFRS standards, amendments or interpretations became
effective in the six months to 30 June 2016 which had a material
effect on this interim consolidated financial information.
3. Significant accounting policies
Basis of preparation
These Financial Statements of the Group and Company are prepared
on a going concern basis, under the historical cost convention
(with the exception of share based payments and goodwill) and in
accordance with International Financial Reporting Standards (IFRS)
and IFRIC interpretations issued by the International Accounting
Standards Board (IASB) and adopted by the European Union, in
accordance with the Companies Act 2006. The Parent Company's
Financial Statements have also been prepared in accordance with
IFRS and the Companies Act 2006.
The preparation of Financial Statements in conformity with IFRS
requires management to make judgements, estimates and assumptions
that affect the application of policies and reported amounts of
assets and liabilities, income and expenses.
The estimates and associated assumptions are based on historical
experience and factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making
judgements about carrying values of assets and liabilities that are
not readily apparent from other sources. Actual results may differ
from these estimates
4. Dividend
No interim dividend for this financial year is proposed.
5. (Loss)/ earnings per share
The basic (loss)/earnings per share is calculated by dividing
the (loss)/profit attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue during the
relevant period. The weighted average number of shares in issue
during the period was 102,233,393 (2016: 64,450,963).
The diluted (loss)/earnings per share is calculated by dividing
the (loss)/profit attributable to ordinary shareholders by the
weighted average number of ordinary shares in issue during the
relevant period diluted for the effect of share options and
warrants in existence at the relevant period. The weighted average
number of shares in issue diluted for the effect of share options
and warrants in existence during the period was 102,233,393 (2016:
64,450,963).
6. Share capital
On the 7 February 2017, it was announced that the Company had
agreed with a certain shareholder that loans from them amounting in
aggregate to GBP38,000 would be converted into ordinary shares in
the Company at a value of 5 pence per share.
On the 4 April 2017, it was announced that the Company had
agreed with a certain shareholder that loans from them amounting in
aggregate to GBP80,000 would be converted into ordinary shares in
the Company at a value of 5 pence per share.
In 2017, a total number of 14,280,000 Ordinary Shares were
issued at 5p each increasing the total number of Ordinary Shares
held in the Company to 106,557,983 (previously: 92,277,983).
7. Subsequent events
There are none to report.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LIFIDTDITLID
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