Wey Education Share Discussion Threads

[microscope] 11/11/2019 17:58

Obviously need to be careful about 'potential size of marketplace' articles. The school system isn't going to crash with some parallel socialist Utopia (which is no Utopia of course!) of everyone learning at home in front of a computer. Apart from the obvious need for kids to have face to face communication with other kids and non-family adults, there are a ton of other issues which would make that utterly unrealistic.

That said, there is scope for WEY to expand from here, and they have done well to re-focus the business as quickly as they have.

It won't be plain sailing as competition is already increasing but they retain first mover advantage which means their systems are fully developed and probably a more complete offering than the 'opposition', and barriers to entry for new competitors remains high. WEY are well positioned to continue to lead the market.

[cyberbub] 11/11/2019 17:33

Massive 1.4M buy gone through after hours.

[netcurtains] 11/11/2019 16:30

Interesting. Looks like people came out of the investor meeting and liked what they heard (or could be a coincidence of timings)

[jonbirdy] 11/11/2019 14:41

Interesting point about VAT which I had not considered. But if the next Parliament lasts five years then I don’t think the VAT situation of private schools will be changing during that period.

[bones] 11/11/2019 14:33

Decent results overall, again somewhat overrun by exceptionals. Will be good to see the back of those and I hope they do not include anything for “exceptional marketing costs”! I suspect that was a relic of the David Massie years?

[smithie6] 11/11/2019 14:17

so schools provide a service....

as does a plumber

but the plumber pays VAT but the school doesnt have to, is that right ??

very kind treatment of the service provided by private schools

[netcurtains] 11/11/2019 13:27

...so whats the down side? Not easy to see, with 5 Million in the bank thats 30% of their market cap covered by cash alone! If Labour get into power and put VAT on private schools that will potentially be a MEGA BOOST to WEY as WEY already pay VAT and it would create a level playing field in which only WEY can win.

[netcurtains] 11/11/2019 12:58

I suggested WEYs market is worth a "modest" one billion pounds in UK. This article suggests market is worth half a trillion:

Either way WEY have hardly scratched the service in the UK - decades of fast growth to come.....

[netcurtains] 11/11/2019 12:28

Taking my point further about the billion pound market for WEYs services. This is a typical example as to why Internet Lessons in the class room are set to grow and grow for decades to come:

[netcurtains] 11/11/2019 12:13

I think the market for internet lessons equates to the entire school population of the UK.... Not as interhigh pupils (lol) but as users of internet REAL TIME adhoc lessons. In my view the market is about 1 billion.

The company have stated growth is accelerating (and it is already growing fast). There are 10 million school children in the UK - if an average pupil gets about 100 quid spent on internet stuff a year then that is a billion quid market.

[microscope] 11/11/2019 11:57

Bit of a mixed bag, as was to be expected. With revenues up 44% (and therefore guessing an increase in pupil numbers of somewhere in that area) and an adjusted profit of over 300k (pre-discontinued etc) gives some clues as to where they might be headed, if they can keep up that sort of rise in numbers, though eventually that will start to plateau at some point I'd anticipate.

Obviously there's a lot of expenses for discontinued operations which won't recur, and as far as it goes that's fine, with the near 5 million cashpile to soften the blow.

One thing which I think might be the same point zulu mentions that did disturb me was the 1.8 million in 'other' current liabilities, which seems rather mysterious and I'm sure the sort of question anyone attending the AGM might want more detail on. It could make a fair dent in that cashpile.

If they can target their marketing effectively they should be able to improve margins and numbers going forward, though 300k on a 44% rise in revenues suggests thin enough overall margins.

It might be a while before they get to say 1 million profit and with over 137 million shares in issue the market cap at 10p would (obviously) be 13.7 million which i think for now is fair value, when stripping out cash.

A decent niche company to be invested in, well focused but with numbers unlikely to excite in the short term vis-a-vis market cap would be my personal overall take. Perhaps they will be nice bolt on for a bigger educational sector player one day - and that is where value could be unlocked.

[abergele] 11/11/2019 10:27

Nice to read,, all good going forwards ,,,
shall be making further topups as the year goes on then..gl all Lth's

[netcurtains] 11/11/2019 10:24

I like the line "accelerating growth" and the growing cash pile.
Seems good to me.
Well done WEY.
Cheers Net!

[napoleon 14th] 11/11/2019 09:22

LTBH.
Good figures overall.

[5oletrader] 11/11/2019 09:11

2019 - 13p ?!
2020 - 25p ?!

[666james] 11/11/2019 08:28

Staffing structures have been rationalized and made highly scalable. Some key positions have been identified and new recruitment mechanisms have meant relevant appointments have been made swiftly. Executive Head Teacher, Head of Business Information and Head of Educational Partnerships have added capacity to Wey's management team.

I do hope the above appointments (3) are not making Wey top heavy. A comment some months ago about another appointment said that Wey were employing a Director for HR (If I remember correctly) was not required with a small company (Cap £14 million)

[jameshughes1980] 11/11/2019 08:10

Positive outlook on growth. Next years broker forecasts step up. 2 1/2 months into the year now so the BOD will know how things have started. Looks on the cards!

[zulu_principle] 11/11/2019 08:08

Not stellar but encouraging enough to justify buying a further 47,956 at 10.4p (incorrectly shown as a sale on the "Trades" screen). A little worried at the increase of £1.1m in payables with no accompanying explanation but overall still moving in the right direction.

[hamidahamida] 11/11/2019 08:04

Generated over 800k cash Cash gone up from 4.2million to circa 5mil

[cyberbub] 11/11/2019 07:56

Zero comments on the results?

[666james] 09/11/2019 13:45

Junderwood. The final figures issued for 2018 indicated that there would be a further meeting in the new year (ie 2019) and there will be a preliminary announcement on 11th November 2019 (Monday) when I would expect a date for this meeting to be given.

[junderwood] 08/11/2019 19:49

Hey all, when is the early November meeting?

[666james] 08/11/2019 14:00

James 2134. I do hope you are right.

[jameshughes1980] 08/11/2019 13:09

Hopefully - delayed announcement due to not wanting good news to be lost in backdrop of political dates / events. We’ll soon see.

[netcurtains] 06/11/2019 08:02

I wonder if they will be Monday?