27th Sep 2019 09:25
(Alliance News) - Education course provider Malvern International PLC on Friday said first-half revenue exceeded internal expectations but its loss widened on an impairment charge.
In the six months to June 30, revenue grew by 28% year-on-year to GBP3.3 million from GBP2.6 million, beating management forecasts, but its pretax loss widened to GBP1.5 million from GBP371,000
An impairment charge of GBP1.1 million was applied on its Malaysia operations as it reported "continued difficult trading conditions" in the country. Malvern is now looking to sell the Malaysian unit.
Malvern said: "The performance in Malaysia continued to absorb the group's management time and financial resources in the first half. Whilst significant efforts were made to control the operational costs and stabilise revenues at a lower level, a review by the board led to the decision to fully impair the value of the Malaysia operation."
UK revenue grew by 88% to GBP2.0 million from GBP1.1 million and revenue in South East Asia fell by 15% to GBP1.3 million from GBP1.5 million. The South East Asia unit also includes Malvern's operations in Singapore.
The company explained: "The UK has continued to show an improved performance with revenues almost doubling. The result from South East Asia was mixed with trading in Singapore remaining broadly similar level to the same period in 2018, while Malaysia's revenue reduced by some 40% lower, in part because of a downsizing strategy but also as a result of continued lower than expected performance."
Looking ahead, Malvern reported forward bookings of GBP4.1 million, providing a "strong base for the second half of 2019". The second half of the year has been historically stronger for the firm.
Malvern added: The recent loan agreement which allowed us to draw down GBP2.6 million has provided the group with sufficient working capital for the foreseeable future. Furthermore, the option to draw down up to a further GBP4.0 million to fund acquisitions gives us the ability and agility to pursue opportunities."
Shares in Malvern were untraded in London on Friday morning, last quoted at 2.10 pence each.
By Eric Cunha; [email protected]
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