Share Name Share Symbol Market Type Share ISIN Share Description
Wey Education plc NEX:WEY.GB NEX Ordinary Share GB00B54NKM12
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -0.43p -4.10% 10.07p 9.10p 11.60p 10.50p 10.07p 10.50p 6,191 08:34:04
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
- - - -

Wey Education PLC Half-year Report

13/05/2019 7:00am

UK Regulatory (RNS & others)


Wey Education (NEX:WEY.GB)
Historical Stock Chart

3 Months : From Apr 2019 to Jul 2019

Click Here for more Wey Education Charts.

TIDMWEY

RNS Number : 7358Y

Wey Education PLC

13 May 2019

13 May 2019

WEY EDUCATION PLC

("Wey", the "Group" or the "Company")

Wey Education plc (AIM:WEY) today publishes its interim results for the six months to 28 February 2019 and reports on a number of important developments within the business.

Financial Highlights

   --     Turnover up 54.7% at GBP2.70m (2018: GBP1.74m) 

-- Continued strong growth in both Interhigh and Academy21, reflected in turnover and gross profit margins

   --     Adjusted profit before tax on continuing operations of GBP124k (2018: GBP23k) 

-- Loss after tax of GBP895k (2018: GBP153k) after exceptional items of GBP571k and GBP310k of losses from discontinued operations in London and overseas

   --     Cash balances strong at over GBP4.96m (2018: GBP4.35m) 

Operational Highlights

-- Wey now focuses on its two core brands, InterHigh and Academy21, and their clear market opportunities

   --     Investment in academic leadership, AI and quality of educational provision 
   --    Further development of the IT platform to enable alignment and scalability of both brands 
   --     Accreditation of Teaching Online qualification, setting standards in education delivery 

Commenting on the results, Barrie Whipp (Chairman) said "Wey is now completely focused on InterHigh and Academy21, our distinct brands for online education. With significant cash resources, and businesses with growing underlying financial performance I believe we have a great foundation for growth in our ever expanding and exciting market"

This announcement contains information which, prior to its disclosure by this announcement, was inside information for the purposes of the Market Abuse Regulation

 
 Enquiries: 
 Wey Education plc 
 Barrie Whipp (Chairman) /                 +44 (0) 7778 367 999 
 Jacqueline Daniell (CEO)                  +44 (0) 1873 813 900 
 Barry Nichols-Grey (Executive Director 
  - Finance)                               +44 (0) 1873 813 900 
 
 WH Ireland Limited 
  (Nominated Adviser and Broker) 
 Mike Coe / Chris Savidge (Corporate 
  Finance)                                 +44 (0) 117 945 3470 
 
 

Chairman's Statement

In the first half of the financial year, Wey Education took the decision to evaluate its investments and activities in a range of wider brands and geographies. Following the illness and then sad passing of David Massie, the former Executive Chairman the Board decided that the best course of action was to concentrate on developing its two core brands in online education; InterHigh, where we provide live online schooling, and Academy 21, which provides alternative provision to educational bodies. The success of the development of these two businesses is reflected in the growth of the Wey Group at the turnover level, where we achieved 54.7% growth, with a full six month contribution from Academy 21 in the current period.

The Company's vision is for the Wey Group to become a provider of online education to a level where it is, in terms of numbers of students, the largest secondary school in the country and for it to go on to become the size of a Multi Academy Trust. This can only be achieved by the provision of excellent teaching and learning, and I am pleased to report that the appointment of Wayne Owens in November 2018 as Executive Head Teacher, working alongside the Academic Advisory Board, led by Dame Erica Pienaar, has seen positive improvements in the quality of our provision. We have a strong ethos of continuous improvement in this area and we aim to set the standard for online education.

InterHigh continues to grow its student numbers and we have embedded into its platform the ability to teach older primary school students which, along with its sixth form capabilities, means that parents can trust InterHigh to manage two life changing periods in education.

Academy21 also continues to grow. Its offering of alternative provision is an area where local authorities and other bodies find Wey an ideal solution to a range of issues such as capacity, funding and provision to students in difficult circumstances. The Academy21 business will be fully integrated into the Wey platform for the new school year starting in September 2019 allowing for margins to be improved whilst maintaining educational standards.

Whilst we have decided not to pursue investments in overseas territories, Wey is very much "open for business" to international opportunities. Fundamentally, location is not a barrier to the provision of our services and we have opportunities to increase export sales, without committing to infrastructure. Our brands have been enhanced and simplified to ensure consistency in marketing campaigns, in which we intend to invest more resources to promote our longer-term strategy. We are delighted to have entered into a partnership with Olympic athlete and commentator Colin Jackson as Wey's brand ambassador.

Our IT platform is allowing us to explore AI opportunities and we have also recently received accreditation for our Teaching Online qualification. This will add to our goal of being capable of achieving early regulatory standards for online education. Regulation of home schooling is very much a matter of concern at the highest levels of government and it is our desire that Wey is seen as a gold standard in online provision.

Financially, the Board has taken the decision to write off the investments in operations in London and overseas. This amounts to GBP571,000 of exceptional costs and GBP310,000 of costs classified as exceptional items or losses from discontinued operations, however the Board believes there are no further significant costs related to this challenging process. The Company's cash balance of GBP4.96m means that we can now focus on the future growth of InterHigh and Academy21 and invest in marketing and new sales representation respectively.

Financial Results

 
                              Unaudited             Unaudited               Audited 
                         6 months ended        6 months ended            year ended 
                            28 February           28 February        31 August 2018 
                                   2019                  2018 
                                                   (restated)            (restated) 
                                GBP'000               GBP'000               GBP'000 
 Total revenue                    2,697                 1,743                 4,192 
 Gross profit margin              56.4%                 51.9%                 53.5% 
 

Adjusted EBITDA

 
                                           Unaudited                                Unaudited                                    Audited 
                                      6 months ended                           6 months ended                                 year ended 
                                         28 February                              28 February                             31 August 2018 
                                                2019                                     2018 
                                                                                   (restated)                                 (restated) 
                                             GBP'000                                  GBP'000                                    GBP'000 
 Operating 
  Profit/(Loss) 
  before tax 
  from 
  continuing 
  operations                                   (586)                                    (118)                                       (63) 
 
 Add back: 
 Depreciation                                     33                                       15                                         36 
 Amortisation 
  of acquired 
  intangibles                                     80                                       80                                        160 
 Equity share 
  based 
  awards                                          59                                       18                                         95 
 Exceptional 
  income                                           -                                        -                                        (8) 
 Exceptional 
  costs                                          571                                       43                                         61 
 Adjusted 
  EBITDA                                         157                                       38                                        281 
 

Adjusted PBT

 
                                           Unaudited                                Unaudited                                    Audited 
                                      6 months ended                           6 months ended                                 year ended 
                                         28 February                              28 February                             31 August 2018 
                                                2019                                     2018 
                                                                                   (restated)                                 (restated) 
                                             GBP'000                                  GBP'000                                    GBP'000 
 Operating 
  Profit/(Loss) 
  before tax 
  from 
  continuing 
  operations                                   (586)                                    (118)                                       (63) 
 
 Add back: 
 Amortisation 
  of acquired 
  intangibles                                     80                                       80                                        160 
 Equity share 
  based 
  awards                                          59                                       18                                         95 
 Exceptional 
  income                                           -                                        -                                        (8) 
 Exceptional 
  costs                                          571                                       43                                         61 
 Adjusted PBT                                    124                                       23                                        245 
 Adjusted EPS 
  (p)                                           0.10                                     0.02                                       0.20 
 

Exceptional costs are broken down as follows:

 
                                        Unaudited             Unaudited               Audited 
                                   6 months ended        6 months ended            year ended 
                                      28 February           28 February        31 August 2018 
                                             2019                  2018 
                                                             (restated)            (restated) 
                                          GBP'000               GBP'000               GBP'000 
 Termination and restructuring                335                     -                     - 
  costs 
 Cost of terminating                          227                     -                     - 
  our London operations 
 Capital reorganisation 
  & other legal costs                           9                     -                    18 
 Acquisition costs                              -                    43                    43 
                                 ----------------      ----------------      ---------------- 
 TOTAL                                        571                    43                    61 
                                 ----------------      ----------------      ---------------- 
 

Comparative figures for the prior period have been restated to reclassify the operations in Kenya, China and Nigeria as discontinued operations in accordance with IFRS5.

Outlook

InterHigh is a leader in the provision of online education offering all its students the opportunity for a flexible, accessible and personal learning solution. In addition, we help educate students engaged in the arts, sports and those that are based internationally. All of these markets represent outstanding opportunities for us to grow the business and with government increasingly concerned about quality and standards, InterHigh is extremely well placed to offer education where regulators and institutions can observe well managed, planned and safe education for students

In Academy21, we prove that all children can benefit from education, even where they might be unable to receive teaching in subjects that they require or where they simply do not fit into the current educational structure. Academy21 offers institutions options that can be very difficult to find elsewhere.

In both of Wey's businesses, we have boundless opportunities and with our narrowed focus we aim to take full advantage of the excellent platform we have built.

The Board is pleased to have received the support of many stakeholders in its strategy and now looks forward to planning growth in our core business.

Wey Education plc

Consolidated Statement of Comprehensive Income

For the six months ended 28 February 2019

 
                                            Unaudited             Unaudited         Unaudited 
                                             6 months        6 months ended        year ended 
                                                ended 
                                          28 February           28 February         31 August 
                                                 2019                  2018 
                                                                 (restated)              2018 
                                                                                   (restated) 
                                              GBP'000               GBP'000           GBP'000 
 
 Total revenue                                  2,697                 1,743             4,192 
 
 Cost of sales                                (1,177)                 (838)           (1,950) 
 
 Gross profit                                   1,520                   905             2,242 
 
 Administrative expenses                      (1,476)                 (962)           (2,157) 
 
 Operating profit/(loss) before 
  non- recurring items:                            44                  (57)                85 
            Equity share based awards            (59)                  (18)              (95) 
            Exceptional income                      -                     -                 8 
            Exceptional costs                   (571)                  (43)              (61) 
--------------------------------------  -------------      ----------------      ------------ 
 
 Operating profit/(loss) for 
  the period before taxation                    (586)                 (118)              (63) 
 
 Finance income                                     1                     -                 - 
 
 Profit/(loss) before tax                       (585)                 (118)              (63) 
 
 Taxation                                           -                     -                33 
                                        -------------      ----------------      ------------ 
 
   Total comprehensive loss 
   for the period from continuing 
   activities                                   (585)                 (118)              (30) 
 
 Loss for the period from 
  discontinued activities                       (310)                  (35)             (166) 
 
 Total loss for the period                      (895)                 (153)             (196) 
                                        -------------      ----------------      ------------ 
 
 
 Basic and diluted loss per 
  share (p) from continuing 
  operations                                   (0.44)                (0.10)            (0.02) 
 Basic and diluted loss per 
  share (p) from discontinued 
  operations                                   (0.24)                (0.03)            (0.13) 
 

Unaudited Consolidated Statement of Financial Position

As at 28 February 2019

 
                                    Unaudited      Unaudited           Audited 
                                        As at          As at             As at 
                                  28 February    28 February    31 August 2018 
                                         2019           2018 
                                      GBP'000        GBP'000           GBP'000 
 
 NON CURRENT ASSETS 
 Goodwill                               1,630          1,643             1,630 
 Intangible assets                        496            642               563 
 Tangible fixed assets                    187            126               189 
                                -------------  -------------  ---------------- 
 Total non current assets               2,313          2,411             2,382 
                                -------------  -------------  ---------------- 
 
 CURRENT ASSETS 
 Trade and other receivables            1,497          1,126               732 
 Cash and cash equivalents              4,955          4,346             4,225 
                                -------------  -------------  ---------------- 
 Total current assets                   6,452          5,472             4,957 
                                -------------  -------------  ---------------- 
 
 TOTAL ASSETS                           8,765          7,883             7,339 
                                -------------  -------------  ---------------- 
 
 
 EQUITY AND LIABILITIES 
 
 EQUITY AND RESERVES 
 Issued share capital                   1,307          1,267             1,307 
 Share premium                          1,515          7,352             7,515 
 Option reserve                           160             95               110 
 Retained earnings                      2,606        (2,478)           (2,499) 
                                -------------  -------------  ---------------- 
 Total equity and reserves              5,588          6,236             6,433 
                                -------------  -------------  ---------------- 
 
 CURRENT LIABILITIES 
 Trade and other payables                 432            336               203 
 Accruals, deferred 
  income, receipts in 
  advance and refundable 
  deposits                              2,095          1,311               703 
 Provisions                               650              -                 - 
                                -------------  -------------  ---------------- 
 Total current liabilities              3,177          1,647               906 
                                -------------  -------------  ---------------- 
 
 TOTAL EQUITY AND LIABILITIES           8,765          7,883             7,339 
                                -------------  -------------  ---------------- 
 

Unaudited Consolidated Statement of Changes in Equity

At 28 February 2019

 
                            Share Capital   Share Premium   Share Option Reserve   Retained Earnings     Total 
                                  GBP'000         GBP'000                GBP'000             GBP'000   GBP'000 
 At 31 August 2017                  1,040           2,868                     77             (2,324)     1,661 
 Loss for the period                                                                           (153)     (153) 
 Proceeds from share 
  issues                              227           4,772                      -                   -     5,000 
 Expenses associated with 
  share issue                           -           (288)                      -                   -     (288) 
 Equity based share 
  awards                                -               -                     18                   -        18 
                           --------------  --------------  ---------------------  ------------------  -------- 
 At 28 February 2018               11,267           7,352                     95             (2,478)     6,236 
                           --------------  --------------  ---------------------  ------------------  -------- 
 
 
 At 31 August 2018                  1,307           7,515                    110             (2,499)     6,433 
 Loss for the period                                                                           (895)     (895) 
 Capital reconstruction 
  (note 8)                              -         (6,000)                      -               6.000         - 
 Equity based share 
  awards                                -               -                     50                   -        50 
                           --------------  --------------  ---------------------  ------------------  -------- 
 At 28 February 2019                1,307           1,515                    160               2,606     5,588 
                           --------------  --------------  ---------------------  ------------------  -------- 
 
 

Unaudited Consolidated Cash Flow Statement

For the six months ended 28 February 2019

 
                                        Unaudited         Unaudited           Audited Year 
                                   6 months ended    6 months ended                  ended 
                                      28 February       28 February         31 August 2018 
                                             2019              2018 
                                          GBP'000           GBP'000                GBP'000 
 
 Cash flows from operating 
  activities 
 
 Profit/(loss) before 
  taxation                                  (895)             (153)                  (229) 
 
 Adjustments for: 
   Amortisation                               104                95                    189 
   Depreciation                                33                15                     36 
   Equity based share 
    payments                                   50                18                     54 
   Taxation                                     -                 -                     33 
 
 Changes in working 
  capital: 
   Trade and other receivables              (765)             (614)                  (206) 
   Trade and other payables                   229                69                   (65) 
   Accruals, deferred 
    income, receipts in 
    advance and refundable 
    deposits                                1,392               558                   (51) 
  Provisions                                  650                 -                      - 
                                 ----------------  ----------------  --------------------- 
 Net cash generated 
  from/(used in) operating 
  activities                                  798              (12)                  (239) 
                                 ----------------  ----------------  --------------------- 
 
 Cash flow from financing 
  activities 
 
 Issue of shares                                -             4,711                  4,914 
 
 Net cash generated 
  from financing activities                     -             4,711                  4,914 
                                 ----------------  ----------------  --------------------- 
 
 Cash flow from investing 
  activities 
   Acquisition of business 
    net of cash                                 -           (1,338)                (1,338) 
   Interest received                            1                 -                      - 
   Purchase of intangible 
    assets                                   (37)                 -                   (15) 
   Purchase of fixed assets                  (32)              (20)                  (102) 
 
 Net cash (used in) 
  investing activities                       (68)           (1,358)                (1,455) 
                                 ----------------  ----------------  --------------------- 
 
 Net increase in cash 
  and cash equivalents                        730             3,341                  3,220 
 
 Cash and cash equivalents 
  brought forward                           4,225             1,005                  1,005 
 
 Cash and cash equivalents 
  carried forward                           4,955             4,346                  4,225 
                                 ----------------  ----------------  --------------------- 
 
 

Notes to the Interim Results

For the six months ended 28 February 2019

1. The interim results (approved by the Board of Directors and authorised for issue on 13 May 2019 are neither audited nor reviewed and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the preceding period is extracted from the statutory accounts for the financial year ended 31 August 2018. The audited accounts for the year ended 31 August 2018, upon which the auditors issued an unqualified opinion, and which did not contain a statement under Section 498 (2) and (3) of the Companies Act 2006, have been delivered to the Registrar of Companies. As permitted, this interim report has been prepared in accordance with UK AIM Rules and not in accordance with IAS 34 'Interim Financial Reporting', therefore it is not fully in compliance with IFRS.

2. Wey Education plc is a public limited company incorporated in the United Kingdom. The Company is domiciled in the United Kingdom and its ordinary shares are traded on the AIM market of the London Stock Exchange plc.

3. The consolidated interim results have been prepared in accordance with the recognition and measurement principles of IFRS including standards and interpretations issued by the International Accounting Standards Board, as adopted by the European Union. They have been prepared using the historical cost convention.

4. The preparation of the interim results requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. If in the future such estimates and assumptions, which are based on management's best judgement at the reporting date, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The interim results are presented in sterling and all values are rounded to the nearest thousand pounds (GBP'000) except where otherwise indicated.

5. The interim results of the Group for the period ended 28 February 2019 have been prepared in accordance with the accounting policies expected to apply in respect of the financial statements for the year ending 31 August 2019.

6. There is no tax charge for the period due to the availability of tax losses brought forward.

7. The basic earnings per share is calculated on the weighted average number of shares in issue during the period. The weighted average number of ordinary shares in issue for the six months to 29 February 2019 was 130,707,120 shares (28 February 2018 : 116,650,560 shares 31 August 2018: 122,934,180 shares).

8. On 21 December 2018, the Company completed a capital reorganisation, transferring GBP6,000,000 from share premium to retained earnings. This puts the Company in the position of having distributable reserves.

9. Copies of this report will be available to download from the investor relations section of the Company's website www.weyeducation.com.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

IR SFDFMSFUSEEI

(END) Dow Jones Newswires

May 13, 2019 02:00 ET (06:00 GMT)

1 Year Wey Education Chart

1 Year Wey Education Chart

1 Month Wey Education Chart

1 Month Wey Education Chart
Your Recent History
NEX
WEY.GB
Wey Educat..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20190721 15:51:23