EC, the Maltese-owned international English language group, is upgrading its presence in the UK in anticipation of business growth in its best performing market, chief executive officer Michael Xuereb told The Sunday Times.
The Ta’ Xbiex-headquartered group will officially move its Brighton centre to newly acquired, larger premises on November 1.
EC originally took over the Brighton school in 2002, its first acquisition overseas. Housed in a listed Georgian property, the building was somewhat of a mismatch with the young, thriving brand which has a preference for modern, bright premises.
Mr Xuereb explained that EC embarked on a challenging search for an alternative five years ago and identified a perfectly suited property at the end of last year. The new EC Brighton is just 200 metres from the spectacular pier and a short walk from the hub of the city. Significant investment has been poured into converting the office block: the move means an upgrade from 20 to 30 classrooms.
Mr Xuereb said EC was now planning an official inauguration in the presence of Maltese dignitaries in early December.
Meanwhile, another lengthy property hunt in the capital has been equally fruitful. EC London’s main school is soon to be based on two floors of an imposing building in High Holburn, leading off from New Oxford Street. The property will house the reception area, administration offices, cafeteria, and will boast 22 classrooms on two floors.
EC London’s current premises in Covent Garden, a 13-classroom school the group took over in 2005, will now serve as an annexe. EC had invested a considerable amount in this building’s refurbishment on acquisition but the operation began to outgrow the centre some time ago, forcing rental of additional classrooms in nearby Bloomsbury.
“London is the largest EFL destination in the world and we see tremendous potential there,” Mr Xuereb pointed out. “The school has been doing extremely well and we expect to continue to grow. The city is the largest destination for corporate English tuition but, in the UK, there are many business English specialists.
“Thanks to our positioning in Malta, many serious companies seeking corporate English tuition tend to work with us locally. EC London is mainly focused on academic year students aged 18 to 25 whose study term usually lasts between six and nine months.”
Across the Atlantic, EC’s US operation is also braced for further growth. EC San Francisco, which opened in May, currently has 50 students. Unlike EC’s other centres, the school is a pure start-up rather than an acquisition, but sales indications for the new venture for 2011 are “very positive”.
EC New York has seen 110 per cent growth this year and is operating at high levels of capacity. Sales trends for next year are up by 100 per cent, primarily on the back of solid distribution sales channels, mainly a network of agents which support the brand.
“The year has been very good for EC globally,” Mr Xuereb added. “The main driver of our international growth has been the US where we have gained the desired market momentum. The UK has also done very well. The only disappointment we had this year was Cape Town, although we did see growth of 30 per cent over last year, but our target was 50 per cent. We expected a better performance after the World Cup in June but it did not come through.”
Mr Xuereb pointed out that EC’s Malta operation had finally seen increased activity after a challenging 2009, with Spain, Russia and Turkey as its main markets. Projections for next year are on the right track to approaching 2007 and 2008 record sales figures.
The local industry was still waiting for confirmation that the Spanish government will run the MEC scholarship scheme again next year. The scheme was the major driver behind the local EFL sector’s revival this summer and the picture should be clearer by November.
EC’s own projections for the first quarter of next year are up by 40 per cent for Malta and 60 per cent group-wide. After emerging from two difficult years which forced careful cost-management, Mr Xuereb said the tide had turned and EC has been able to improve profitability and shareholder value this year.
The absence of a major incident like an ash cloud crisis or an epidemic, and the euro weakening slightly against the dollar and sterling also contributed to the upturn.
Negative publicity surrounding incidents involving younger students slowed down the market from France, Spain and Germany.
The group is now keen to tap new markets and segments. With its European roots and its Malta base, EC has been able to build a very strong network of agents on the continent. As it acquired schools in the UK, the Asian market came in for more attention. Similarly, EC’s US ventures spurred a focus on business potential in the Middle East.
Mr Xuereb pointed out that Asia, the Middle East and Latin America were major focal points for the group as it sought to strengthen business in the regions. Meanwhile, a regional sales manager has been appointed in China in a bid to generate more sales activity there.
EC is also seeking to replicate its business model in Latin America through Expanish, the Buenos Aires-based Spanish teaching institution in which it acquired a 50 per cent stake last year.
An important development in the EFL industry has been a major product focus shift: “Whereas historically our industry has been about language proficiency, the market has been shifting into university preparation programmes over the last three years, particularly from markets in Asia and the Middle East. Students seeking to enrol in a university in the US, the UK, Canada or Australia are fuelling a demand for foundation and pre-Masters programmes which are a mix of language competence and study skills,” the chief executive explained.
EC has developed a range of university pathway programmes which feature in its 2011 brochure. EC students are also able to benefit from conditional acceptance to 20 universities in the UK and the US with which the group has signed partnership agreements. Academic English courses open up new markets for EC, particularly in China, Vietnam, Indonesia, India, Saudi Arabia, the Gulf, Iran, and South Korea.
Back in Malta, the 60-strong head office team is set to grow to 100 in the future. Mr Xuereb said EC could even move to new headquarters by the end of next year.