Wey Education Share Discussion Threads

[bdh1] 12/5/2020 12:00

Also the marketing costs are important. In prior years they were badged tenuously as "exceptionals." Not any more. Wey is in growth phase and customer acquisition i.e. marketing is an up front investment. In most businesses it can take several seasons / years for marketing to pay back. Wey is making these up front investments without any losses. If you think many of the pupils it attracts and their gross margin will roll into future years without the same investment requirement(i.e. free). Arguably, WEY could have switched down the marketing tap and reported a higher profit. It didn't because it's looking to grow. At 43% it has clearly done that and some way still to go

[bdh1] 12/5/2020 11:52

Spooky: Don't forget the £6.6m cash

[shanklin] 12/5/2020 10:47

Thank you simso

[simso] 12/5/2020 10:44

I see a new note from WHI is available on research tree. Sales forecast has been increased from $7.5m to $7.9m...while 2021 sales have increased by a more sizeable amount...$9m to $9.9m. Profit Forecasts are maintained rather than increased...reflecting an increased marketing and other investment to capitalise on the opportunity presented by the surge of interest in Online Education. Fair Value assessment raised from 31p to 34p.

I also note some important points of detail in the Balance Sheet...with Deferred Income up +37% and Refundable Deposits +88% higher than the same time last year. This augers well for the second half..and I suspect the new $7.9m could well be surpassed.

[shanklin] 12/5/2020 10:33

Obviously that depends on how quickly and sustainably WEY grows earnings.

[spooky] 12/5/2020 10:31

All good, but is the business REALLY worth more than £30m?

[netcurtains] 12/5/2020 10:08

melody9999: No I dont think I can send a link. It came to investors via email . You then accept the invite or not. I guess you could ring the brokers if you want an invite: W H Ireland

Cheers Net!

[melody9999] 12/5/2020 09:53

Net 2646 - what is happening Thursday. Can you send me a link?

[bigboyblue] 12/5/2020 08:24

I think they've got a bit of leeway atm. They've already said 'in excess' of £7.5m and I guess the effect of covid is still unfolding and difficult to predict with any certainty.

[seabornlegend] 12/5/2020 08:06

Don't buy that PR card. If there is a material change either way since the trading period why not tell us?

[bigboyblue] 12/5/2020 07:42

Even better figures than I expected.
Agree re the PR dilemma in the current crisis.
It will be interesting to know what they plan to do with that big (and growing) pile of cash.

[netcurtains] 12/5/2020 07:36

The Million Dollar Question:

If Turnover up 43% in PRE-COVID period (up to 29th Feb) what will it be during COVID period? (eg now)

I suspect some Investors will be asking questions like that this Thursday...

[netcurtains] 12/5/2020 07:20

LOL - They are going to keep us waiting until THURSDAY to tell us how the COVID19 period is going....

I guess that is wise. No company wants to appear to be profiteering out of a crisis. Well done WEY! Great set of results.

They have a heck of a lot of cash!!!!

Financial Highlights

-- Turnover increased by 43% to GBP3.87m (2019: GBP2.70m)
-- Continued strong growth in both Interhigh and Academy21, reflected in turnover and gross profit margins

-- Profit before and after tax of GBP215k (2019: loss after tax of GBP895k after exceptional items and discontinued operations)

-- Cash balances over GBP6.6m (2019: GBP4.9m)
-- Strategy to take advantage of enhanced awareness and opportunities in online education.
Operational Highlights

-- Expanded Executive Team in place to drive future growth
-- Teaching Online qualification implemented
-- Enhanced education model and delivery strategy for growth under way

[jurgenklopp] 12/5/2020 07:19

Stonking results.

Solid balance sheet.

Very positive outlook.

[netcurtains] 11/5/2020 07:49

To recap:

WEY said results "above expectations" back in Feb 25th.
They also said "due to extra funds they will be expanding ...."

Since Covid19 hit UK WEY are STILL expanding staff so one assumes
the results are still "above expectations".

The has been no further trading update since Feb 25th so one must assume that
trading update is still valid.

This week should be interesting as Broker/Wey investor zoom meeting is on Thursday, so one expects results to be a day or so before that... MON or TUES or WED....

Most like TUES or WED....

[netcurtains] 08/5/2020 07:55

bigboyblue: the brokers/wey investor Zoom meeting is for Thursday next week ( I guess a couple of days after results) so I think people will need to factor that in.
In previous rises much of the rise happened in the weeks after the brokers/wey investor meetings. It will be interesting to see what happens this time.

the results, I guess, will show that WEY was rapidly expanding before the lockdown in the UK - alas we have no real idea if the lockdown is good or bad for WEY - we guess good

BUT here are some anti points:

some depends on local authorities still giving academy21 work - is this still happening? If so is it bigger or smaller?

With InterHigh there must be some mess with GCSE and A Level cancellations - what is that doing to the bottom line?

Yes there will potentially be lots of new pupils (eg all the adverts for new staff) but there might be some mixed figures here too.

We just dont know - hence the BULL BEAR tussle.

[bigboyblue] 08/5/2020 07:38

Perfectly reasonable, after all we often see share prices fall on receipt of apparently good news. Personally I'm staying put as I feel there may be VERY good news. It comes back to net's post 2624. The news is meant to be about the 6 months to Feb, but that has become less important now. It's the full year guidance that Wey will be judged on. We know it will be at least £7.5m, but the question is: How much more? Any thoughts on what would be good and what would be very good?

[johnnew2001] 08/5/2020 03:17

I am with Miton and have taken profits.

[boadicea] 07/5/2020 21:56

The figure of current holding for the Miton Microcap Trust announced on Monday is the same as for the whole Miton Group announced today, i.e. they have apparently sold all the shares other than the Microcap Trust ones which were sold down to ~5%.
By implication I would think there is a good chance that this particular seller is finished for the time being.

[Edited to put the two holdings notices in the right order.]

[mfhmfh] 07/5/2020 17:13

Hopefully that's the seller cleared.

[netcurtains] 07/5/2020 16:39

Thanks Guys for putting me straight! Yes have a good weekend everyone. PS its only Thursday today. That is lock down for you!

[eeza] 07/5/2020 16:28

RNS
P Miton reduced.