Wey Education Share Discussion Threads

[nico115] 20/1/2021 11:04

Bought 100k wey at 36.5 ,rude not to

[sonie01] 20/1/2021 09:37

Why the drop?

[qvg] 18/1/2021 12:08

thanks bigboy

[shanklin] 18/1/2021 12:00

Thank you for the feedback on the VAT front

[bigboyblue] 18/1/2021 11:58

Re the VAT issue squib3 is correct. I did email Barry Nichols-Grey and was impressed to receive this very prompt response:
'To answer your question, one of the InterHigh subsidiaries was incorporated as a not-for-profit entity which entitled it to an exemption from VAT. This made distributing its profits across the Group problematic and gave us issues with irrecoverable inputs. We undertook a broad structural review to address this. As the business grows, the problem would only increase. We will now charge VAT on InterHigh’s UK sales. This doesn’t mean that VAT has been treated incorrectly in the past.'

[wigancasino] 18/1/2021 10:50

Surely not going to break the 40’s this easy. Took a good month or so hitting 30 and dropping back. Still early days and even with the very best news the mm’s like to play games. I was thinking we will bounce around 40 for a while, don’t mind being proved wrong though, this is one share I would much rather be in than out.

[squib3] 16/1/2021 11:19

Not for profit education is Vat exempt, InterHigh was not for profit when bought. I suspect they have had to start charging Vat so they can pay dividends going forward.

[bigboyblue] 16/1/2021 09:18

Shanklin: like you I'm groping in the dark somewhat. I'd have thought that they either have to charge VAT or they don't (and can't). However, the rns seems to imply that WEY can choose whether or not to charge VAT and have elected to do so. This overview says that education services are not taxable but clearly there is more to it than that. The other implication from the rns is that they have to charge VAT in order to pay future dividends, clearly of benefit to shareholders.

Surely someone reading this board must know. The alternative is to seek clarification from the company but I don't believe they are renowned for their fulsome communication with shareholders.

For transparency I sold my shares after this week's update, but remain interested and would buy again if they drop back.

[cordwainer] 16/1/2021 00:20

@shanklin, i suspect the VAT change is just a symptom of growth, or at least of expected growth in monthly or quarterly net cashflow according to margin. In terms of goods and services in / out, maybe there's been for example contractual technical servicing and hosting plus content maintenance and creation versus revenue. i confess i don't know quite as much about the business as i should as a shareholder.

[boadicea] 15/1/2021 13:43

I have just noticed that there are almost as many shares traded on Aquis (AQSE:WEY) as on LSE.

[mfhmfh] 14/1/2021 14:02

seller cleared?

[shanklin] 14/1/2021 12:46

Does anybody know why the VAT change was a decision under WEY's control? Can we be certain they are not liable for retrospective tax bills for previously having misapplied the rules?

Any help appreciated... WEY should obviously have explained this.

[zulu_principle] 14/1/2021 09:11

Wigan - good post, although I'm reluctant to put a target value on the share price.

If medium to long term plans are achieved as laid out by JD in the last investors' video session the share price will be a multiple of where it is today - however I think there's a significant risk the company will be bought well before such heights are achieved.

As a bid target WEY has a lot going for it - established company, good reputation, cash in the bank, growing target market, government accreditation through the ATHE Level 4 course (due to start this month).

I'm continuing to hold for the time being but will probably trim my holding at some point (a bit overweight at the moment).

As always, my personal view only - DYOR.

[wigancasino] 13/1/2021 21:44

I don’t think the VAT shock will really materialise into losing or putting off students and am sure the decision was not taken lightly. In these last 4 months of the the FY we are told we are significantly ahead of both budget and market expectations. Not just a bit ahead.

Can understand anyone taking profits on 40p but for me this has further to travel Old blood sells out and new blood buys in. We can only look back in hindsight to see if we should of bought, hold or sell but a profit is only a profit if it’s banked.

As I said that is a bit early for me yet, I am looking for 60p, plenty of shysters on AIM but you ride your winners.

Barrie Whipp, Chairman, commented "We are very pleased with the Company's performance in the early part of the financial year which we envisage continuing during the rest of the year. The Board intends to continue investing in growth; this is not the time to consolidate, but to continue to push forward.

The last sentence by Barrie Whipp definitely made my mind up to hold on for the ride. Well run, exceeding expectations and forward thinking.

Everyone makes there own choice but I am in for the foreseeable future.

[sonie01] 13/1/2021 20:54

Predictions anyone?

[energeticbacker] 13/1/2021 16:52

Featured in today's Investor's Champion update:

Wey Education: trading significantly ahead of budget and market expectations. Despite large volumes traded, the shares barely moved on the news, perhaps suggesting that some also believe that the share price may have got ahead of itself.

[zulu_principle] 13/1/2021 14:19

Interesting update. Good to see management continuing to invest in the future whilst getting ready for a maiden dividend. Happy to continue holding for now. To me this looks like an increasingly attractive takeover target. As always just my own views - DYOR and all that.

[longshanks] 13/1/2021 11:11

Always nice to see the words "beat expectations".Only caveat I see is that they are to commence charging customers VAT and to mitigate the initial shock, appear to be effectively reducing their net prices.Upside to this is that they look to be getting ready to declare a progressive dividend, but downside is what affect the price changes will have on demand and profitability

[bigboyblue] 13/1/2021 10:51

I also sold my remaining shares this morning having held varying quantities over the last 3+ years. I still believe in the long term prospects here though and hope to buy back at some time in the future.

[netcurtains] 13/1/2021 09:55

seanworld: I sold the remainer of my shares mid 30s. I am still an interested by-stander as I believe in home school but the covid pandemic and lack of GCSEs etc make me unsure of what is really going on under the hood.
So I'm just watching but anything could happen: WEY could shoot up or down on a sixpence.

Massie was an expert in China etc and he might well have done much better in the pandemic.
Who knows - might have been in his element.

[seanworld] 13/1/2021 09:10

Wey have produced similar statements in the past with numbers missing.


As a previous shareholder (sold on profits warning) the direction
away from D.Massie route looks at present to have been the best choice.


Congrats to shareholders who held through the fall back down to circa 5p from highs of 40. (netcurtains only name I see left posting here) It has been a slow turn around but nice to see the recovery here.

[mginvestor] 13/1/2021 08:06

I just tweeted out new updated broker FC's



Personally think FY21 revised FC's will be beaten again.

GLAH

[jamessmith23] 13/1/2021 08:03

Fantastic RNS, kicking myself for hovering over the buy too long when it fell to 25 a few months back, but well done to holders. Good to see it aiming for further growth as opposed to paying out divis with cash made, it is a volatile share so if the opportunity presents itself I won't hover as much next time!

[netcurtains] 13/1/2021 08:02

no numbers mentioned - bit weird. But still who knows.