Manchester English language school gears for growth after £2.34m acquisition

From left: Daniel Rodgerson, Marzena and Richard Mace, and Jonathan Rourke

English language specialists Communicate School is gearing up for more growth following completion today, July 2, of its £2.34m acquisition by AIM-listed Malvern International.

The Manchester-based language school, which is British Council accredited, was founded in 2013 by husband and wife team Richard and Marzena Mace.

Last year it taught more than 600 students.

For the year ended June 30, 2017, it reported unaudited revenues of £1m and profit before tax of £410,000. As at December 31, 2017 Communicate had net assets of £400,000.

Malvern International is the holding company for a number of wholly-owned operating subsidiaries whose business is to provide educational qualifications in the UK and internationally in countries like Singapore and Malaysia.

Marzena Mace, principal of Communicate School, said: “We are delighted to complete this deal which brings us into the award-winning Malvern family.

“We were determined to partner with a like-minded organisation that puts students first and prioritises the development of supportive learning environments.

“Our Manchester location perfectly complements Malvern’s existing London school and provides an alternative attractive location for potential Malvern students.”

Richard Mace, director of Communicate School, said: “This deal will enable us to grow the business and will enable us to continue to innovate with the variety of programmes we provide.

“We are confident that by joining the Malvern team we will continue our ethos of investing in good facilities and first-class teachers.

“It’s a good deal for students and a good deal for our teaching staff.”

Daniel Rodgerson of Manchester law firm Freeman Fisher, who advised the shareholders, said: “The deal means that Communicate will now have the additional leverage associated with belonging to an established PLC and enables the existing successful management team to continue to drive the business in the right direction.”

Jonathan Rourke of Rock Advisory, the corporate advisory firm who led the deal for Communicate, added: “The combination of cash and new shares in the PLC is a perfect blend that incentivises all parties to continue on the growth curve.

“Revenues and profits at Communicate School have increased in each of the last four years and it is a wise strategic move.”

Gopinath Pillai, chairman of Malvern, said: “The acquisition of Communicate, our second in seven months, illustrates the consolidation opportunities in our industry and Malvern’s ability to partner with willing vendors.”

Shoosmiths in Manchester advised Malvern on the deal.

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