27th Apr 2018 08:43
LONDON (Alliance News) - Shares in UK education firm Malvern International PLC jumped Friday after it said it expected to become profitable in 2018 after losses narrowed on higher revenue in 2017.
Shares in Malvern were 19% higher at 4.00 pence on Friday.
In 2017, pretax loss narrowed to GBP706,712 from GBP1.3 million the year prior. This was after revenue grew slightly to GBP4.08 million from GBP4.04 million the year before.
Profit performance was helped by a fall in cost of sales to GBP1.9 million from GBP2.2 million the year prior.
"2017 as a whole, and in particular the second half, has seen a considerable improvement in the group's performance and an upward trajectory is now discernible," Malvern Chairman Gopinath Pillai said. "This has been due to three main factors. Firstly, a stronger management has been in place which will be strengthened further as we go forward. Secondly, the agent network has been reorganised successfully. Thirdly, our offerings now cover a wider range of products.
"In addition to these factors," Pillai added, "I am optimistic that the first major acquisition which we completed in November 2017 will have a significantly positive impact not only on the operations of Singapore but also for our global platform. The board continues to be active in discussions with potential acquisition partners."
In November, Malvern acquired SAA Global Education Centre Pte Ltd in a SGD500,000 all-share deal.
"With the new acquisition of a four-year EduTrust licensed school in Singapore," Pillai added, "the continuing new initiatives in London and the re-introduction of international student intakes in Malaysia, the group is well positioned to benefit from the expected growth through acquisition and organic growth."
"Trading in the current financial year has started well and the board is now confident that with the reorganised and a more focused group, the impact on the performance of the group can only be positive going forward and that it will bring the group to profitability in 2018," Pillai concluded.
Related Shares:
Malvern Intl