Malvern International PLC on Tuesday said it has decided to close Malvern House, Brighton English language training school by the end of the 2023.

The London-based learning and skills development company had opened Malvern House in 2019 in Brighton.

Malvern International said the decision has been made following a review of the viability of the school, informed by current operations, overhead costs, projected student numbers, financial performance and the further investment required for the school to achieve profitability which it had yet to do.

‘The Covid-19 pandemic halted our efforts to build student numbers quickly, and the centre’s performance has since been affected by increased competition and rising costs for student accommodation in the city, making it a less attractive destination for our target audience,’ the company explained.

The centre accounts for about 5% revenue and is expected to deliver a loss of about £100,000 for 2023.

It noted that the Kuwaiti government is a key customer for this centre’s growth prospects. However, Malvern International said the government has recently indicated that it will be diverting sponsored students to other cities including Malvern’s Manchester centre.

Furthermore, a break clause in the lease agreement provides Malvern International with the option to give notice or extend for a further five years. As a result of this and the review, Malvern said it has served the landlord notice on the property.

Chair Mark Elliott said: ‘This decision has not been made lightly, but it was clear to the board and the ELT senior leadership team following the review that we had two options: we either take this opportunity to give notice to end the lease and close the business; or, commit to a further five years developing the school. We calculated we would unlikely be able to deliver the critical mass needed to make the business profitable without significant further investment and sufficient visibility of student take up.’

Shares in Malvern International were flat at 24.00 pence each in London on Tuesday morning.

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