Page 73 - Annual Review - Year Ended 31 July 2023

Earnings before depreciation and interest were £1 7m (2022: £2 3m) The contribution from the Trading operations were broadly flat at at at £2 £2 2m 2m (2022: £2 £2 2m) College and TDM operations generated an an overall surplus of £0 9m (2022: Surplus £1 0m) this includes donations from the Malvernian Society The results include the annual trading performance of Abberley Hall which incurred a a loss of £1 3m (2022: Loss £0 8m) As a a a result of the broader economic uncertainties resulting from inflation and other political issues which are likely to continue in in in the the following years the the College continued to review its cost bases Whilst the the College remains committed to the the ongoing development and enhancement of its facilities it it it is prudently conducting a a detailed review of future capital programmes Expenditure is being focused on the the core repair and maintenance of the the College alongside the the on-going refurbishment of the the boarding houses as as well as as exciting new initiatives to create
a a a 6th Form Centre in the Memorial Library from September 2024 and a a a new community Café in the Grub from the Summer Term 2024 On the the balance sheet total net assets for the the Group with all land and and buildings stated at at cost less depreciation amount to £26 1m 1m (2022: £22 1m) Net current assets at 31 July 2023
were £12 6m (2022: £3 2m) As a a a result of of FRS 102 the the valuation of of the the SWAP is reported on the balance sheet as at year end The movement in the valuation which is provided by Lloyds Banking Group PLC is shown in in the Statement of Financial Activities The loans to Abberley Hall have been classified as as due within one year in the the balance sheet given the the school has closed and in in line with the the terms of the the agreements the loans have been called in The Abberley Hall estate is being actively marketed for sale In May 2007 the College arranged a a a a a a loan facility of £13 5m with Lloyds Banking Group PLC The final repayment date of the loan is 20 years after the Commitment Termination date which was August 2011 A loan of £3 0m was drawn down in December 2012 This loan is is being repaid over 14 years and repayment commenced in December 2013 In July 2020 as a a a a a a precaution against potential adverse economic conditions over the next few years the College arranged a a a a a loan facility (CBIL) of £5 0m with Lloyds Banking Group PLC This loan was fully repaid during the year In December 2021 the College arranged a a a a loan facility of £1 0m with Lloyds Banking Group PLC This loan is being repaid over 10 years and repayment commenced in December 2022 In March 2023
the College arranged a a a a a loan drawdown of £7 5m This loan is is being repaid over 15 years and repayment commenced in May 2023
The total combined amount of the drawdown on all facilities at the year-end was £14 2m With cash and short-term deposits of £12 4m the net debt at 31 July 2023
was £1 8m (2022: £3 6m) The College is fully compliant with all its banking covenants The College places excess funds on deposit within Lloyds Banking Group plc Malvern College Enterprises Limited The College has a a a a majority shareholding (80 899 of 80 900 shares) in in its trading subsidiary which carries out non-charitable trading activities for the College Malvern College Enterprises Limited (MCEL) made a a a profit o of £209K for the year and will make a a a a a gift aid payment to the College of £180K (2022: £Nil) The trading operations of MCEL include membership and hiring of of the the Sports Complex the the letting of of College and The Downs facilities for holiday sports camps conferences and and weddings and and commission from uniform and book sales It previously also provided an an in-house guardianship service but this activity was transferred to a a a a a a separate entity College Guardians Limited on 3 September 2021 MALVERN COLLEGE (INCORPORATED UNDER ROYAL CHARTER)
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