FoggyIsle.XYZ | Market's view on Malvern Intl

Stock watchers noted an increase in Malvern International’s revenue by 79%, reaching £11.3m in FY23 with a small profit before tax of £0.3m, showing a turnaround from a £1.0m loss in FY22.
Observations were made about a significant revenue increase in the Juniors division, with a revenue of £3.7m from 2,478 students during the high season, and an increase in Adult ELT revenue by 13%.
A stock watcher highlighted a 55k buy order at 27p, suggesting strong buying interest above the market price.
There are positive comments on Malvern International’s underappreciation in the market despite its financial improvements and debt reduction.
Discussion about a solid base for future growth with strong forward bookings and revenue visibility was noted, suggesting confidence in continued growth across all divisions.
Malvern International’s significant growth in the University Pathways sector was discussed, with an intake of 330 students in January and about 770 students currently enrolled, marking a 62% increase from the previous year.
Concerns were raised about the potential impact of changes in UK government immigration rules on future bookings, with expectations for early bookings for the 2024/25 academic year to soften.
Positive remarks were made about Malvern International’s strategic hires and investments in business development and sales, aimed at scaling the Juniors and ELT divisions and extending geographic reach.
It was noted that Malvern International’s admissions and compliance processes at UEL are fully integrated within the University’s teams to ensure maximum oversight of practices and compliance with UK Visa Immigration requirements.
There was mention of UK universities facing challenges in recruiting enough foreign students, which presents an opportunity for Malvern International to leverage its marketing network.
Stock watchers are optimistic about the forthcoming trading update, anticipating it to reflect the company’s undervalued status in the market.