Wey Education Share Discussion Threads

[bones] 13/5/2019 08:09

Expected kitchen sinking, not out of line with expectations. Hopefully not much more to report in H2.

Top line growth is great and the future is bright if Interhigh and Academy21 can really take hold. Management should now be clear to focus razor-like on growing the businesses which will be merged in terms of the operating platform from academic year 2019/20.

I will try to learn more details in time. Clearly turnover needs to start accelerating away from administrative costs as a percentage and hopefully, with infrastructure now rationalised with the closure of London and overseas overheads, this will happen.

Cash in bank £5M and growing. Market cap before the open was £7M. We just love “efficientR21; stock markets!

[spursspurs] 13/5/2019 08:05

Happy with that as was slightly worried when my buys on Friday showed as sales and the price dropped :)

[74tom] 13/5/2019 08:05

Bought back in here, the clincher being the huge increase in income received in advance, which has lead to the £700k increase in cash. Broker target of 35p!

[superadams] 13/5/2019 08:02

Better than I expected with cash up to £ 5m. Topped up.

[bones] 10/5/2019 17:26

Some big stuff gone through there, Net! Clearly one position at least being liquidated. More of Miton perhaps?

[netcurtains] 10/5/2019 15:01

...so I guess last chance to buy or sell big before monday. Be interesting to see if any big players make a move last thing Friday.

[junderwood] 10/5/2019 13:00

That would be interesting Netcurtains if they have developed that, you’re right that could take care of that problem. I guess the technology could be out there.
Interesting about the investors morning. Some questions do need to be asked.

[netcurtains] 10/5/2019 11:48

Junerwood: If the class is using AI (Maths) as they have already stated they are experimenting, then surely the class size could be more or less infinitely large as the AI would be able to answer thousands of questions more or less seamlessly and simultaneously .. However I think (not sure) there is an investor morning (I think on monday) so perhaps we'll learn more then.

[superadams] 10/5/2019 09:37

We have already told that the co is profitable BEFORE deducting PLC costs. What do we reckon these are - £300k - £500K ??

[garth] 10/5/2019 09:25

Junderwood,

How many students in a university lecture?

Many schools place two classes together to team teach on occasions.

Online, a teacher is not having to manage behaviour in the same way as in the classroom. If you need to "send someone out" online, you can just disconnect them.

The question as class sizes increase is what the quality of feedback to individual students is like in addressing misconceptions and offering guidance for improvement - and how timely is it in being delivered.

Numbers per se are not really the issue - although they do raise important questions about quality of education.

If as a shareholder you are interested in the profitability of the venture you need to consider that larger classes improve margin, smaller ones destroy margin. The question is how well they do what they do to preserve quality of learning as class size increases and where the sweet spot lies.

Now, the really important issue to tease out is why if bricks and mortar schools can return a balanced budget with an average of 25-30 students in a class, why aren't WEY already delivering healthy profitability on ratios way in excess of that?

G.

[junderwood] 10/5/2019 08:28

Spoke with Tony Knowles yesterday and can confirm they have classes with 50-80 students. Unbelievable. I asked why this hadn’t been told to share holders and he didn’t have an answer to hand. I asked about the reasons why and was told it was to give more teaching time. I hope to bring this up in the AGM.

[netcurtains] 09/5/2019 10:19

jonbirdy: (a) InterHigh is growing fast so marketing is not an issue. (b) However in your face advertising (hashtags are "in your face") is not necessarily a good thing when we're dealing with people who are clearly more private types then normal (eg many do not like to be in large classes with lots of people). (d) people here probably want to leave the hurly burly of social media etc somewhere else and get more "ME" time.

[bones] 08/5/2019 22:32

Jonbirdy, it is one poster’s opinion about the marketing issues he has seen that is in danger of being blown out of proportion here through repetition. It is best he contact the company direct to discuss it maybe.

I agree, at an operational level there may be room for improvement - perhaps. I think it’s overblown in the overall investment context given the school itself is a multi-year growth story so for now I prefer to focus on its numbers. My money is backing those so let’s see :)

[jonbirdy] 08/5/2019 20:37

I’d have to agree with Junderwood, inasmuch as if a growth company does not have a strong online advertising presence then they will struggle.

Net: I don’t really get what you mean by ‘this isn’t really a hashtag type outfit’. Maybe I have misunderstood you.

This company’s offering is entirely online, even more reason for the need to be on top of the marketing in that same medium. This is not optional!

(Disclosure: I’m long)

[bones] 08/5/2019 18:13

Junderwood, no, I spoke to the finance guy about the accounts timetables only today. Other things can wait, for me anyway, until the interims and then I might compile a wish list. Their telephone numbers are on RNS's if you want to follow up other queries before then.

For me, this is a play on relative price. The company is valued at £7M, has £4M cash in the bank, is clearing up a small mess (£0.5M - £0.8M exceptional cost per broker note in February) and plans to grow quickly generating cash all the way.

I have bet quite big here at 5.35p on average and plan to bag at least once. The market is pricing the company at next to nothing ex-cash. Even if they have some marketing wrinkles as you suggest, I believe I have the percentages on my side.

I doubt they are as naive as you think as they have been growing the business for 14 years, but perhaps they will welcome your thoughts on the marketing side?

[netcurtains] 08/5/2019 17:40

I like the idea of being a big fish in a smaller pond FIRST.
Colin Jackson

[junderwood] 08/5/2019 17:01

Hi All,
Did you speak to them about class sizes bones?
Not impressed by the marketing so far.
The thing they did with Colin got no traction. I think they even forgot to hashtag the event. Looks like they don’t know basics of online marketing.

[bones] 08/5/2019 13:03

I called the company earlier and it was confirmed that the interims are slated for release next Monday, 13th May.

[bones] 08/5/2019 13:00

Some good concepts there Net.

[netcurtains] 08/5/2019 12:50

Yes I'm with you there....
I can imagine marketing men doing a blue sky thinking thing with big white board. What does wey want for its new image?

(a) sport (global - Olympics?)
(b) Public School standards
(c) No school run
(d) Media (eg Game of Thrones)
(e) studying on the beach
(f) eating and drinking or being in dressing gown while in class

It has so much going for it, but do you over play it or under play it.

In a sense this is a new company.

[pol123] 03/5/2019 22:16

Yep, trend looks bad, reckon this will slide further
Doomed

[netcurtains] 03/5/2019 17:20

Good tweet: