Page 69 - Annual Review - Year Ended 31 July 2023

fees The College made the the decision to cease further loan funding beyond the 2022-23 academic year and despite herculean fundraising efforts by the school community together with approaches by the the Governors to to school groups and investors it became clear that the School was no longer a a a a going concern and the College formally called in its loans The The financial position of The The Downs is also challenging however the the merger between the the Downs and the the College during the the year has already resulted in some economies of scale and there have been early signs of growth under the exceptional leadership of the Headmaster Andy Nuttall We are investing in in in in growth within the Downs and have a a a strong future plan Close to 80% of The Downs Year 8 pupils are expected to join The College in in September 2024 continuing its vital part of the Malvern journey for families Ongoing inflation is a a a challenge for the sector 53%
of the Group’s operating expenditure is in in payroll and robust mechanisms are in place to control recruitment whilst remaining competitive based on external benchmarks 60% of the remaining non- payroll operating expenditure is in in in the following five areas almost all of of which are are exposed to some of of the highest rates of inflation:
1 Food and hospitality: a a a a a a full external audit has been completed with the Independent School Catering Consultancy (ISCC) to establish further efficiencies 2 Gas and Electricity: we continue to engage with our energy broker to secure the best rates and we are focusing on our sustainability plans to reduce long-term energy consumption 3 Marketing and Admissions: we will not be cutting costs but are placing greater focus on on return on on investment investment to maximise our investment investment 4 Estates Maintenance: we are developing a a a a a long-term ‘Planned Preventative Maintenance’ programme to avoid unnecessary reactive maintenance costs in in the future 5 Academic: whilst we do not plan to restrict funding in in in this area we have put in in in place robust cost controls and improved communication with budget holders The Group’s net debt position improved by £1 8m to a healthy £1 8m The College repaid in full the CBIL loan taken during COVID and secured further financing
to to deliver a a a a a range of strategic projects that aim to to increase pupil numbers and and experience and and deliver utilities savings through sustainability investments We closed the 2022-23 year with a a a a robust balance sheet The detailed consolidated Group and College balance sheet follow in in the coming pages MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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