Wey Education Share Discussion Threads

[microscope] 16/11/2017 09:17

Might take a bit longer than you think on profits of 17k :)) IQE (I don't hold) has a market cap of 1.3 billion, made interim profit of 10 million, and is still on AIM.....

As you know i'm a big WEY fan, love the niche and think there's a vast exploitable market for WEY, but I think the share price is for now symptomatic of the mini-bubble AIM is experiencing - a lot of goodwill is built into a lot of prices right now. But the trend, as with WEY, is still definitely positive and hopefully the share price has a bit more to come short term.

Which is all great. However i hold LTG but not sure how long its market cap in the hundreds of millions can be justified.

Ride the wave but be prepared to react quickly (something I didn't do in the last AIM bubble) when the tide turns, as it will as the realities of Brexit loom ever closer. The weak pound is actually underpinning FTSE 100 ironically (though not the 250) and if WEY can get a foothold in Europe in the next 18 months can benefit them eventually too. But for the sort of growth to move to the main market, there will have to be many more placings and acquisitions.

Anyway enough of my market ramblings, looking forward with excitement to find out who the 'Target' is.

[netcurtains] 16/11/2017 09:10

Bones if you look at Paula's linkdin (Wey Academy) you come up with her previous employers. Some of them could be the type of thing we're after:

1. Tute Education Limited . (from link:
Tute has delivered online learning solutions to over 400 schools in the UK, 350,000 students and has delivered 15,000 hours of lessons. Partners in learning include BT, Durham University, Shireland Collegiate Academy and Achievement for All).


2. Kingswood Learning and Leisure Group Ltd . (getting kids together in REAL time)

These are just wild guesses - I like the idea of owning ADVENTURE holidays - its like the missing link to home school education (making rounded kids)

These are just wild guesses - probably a million miles away from the truth

[bones] 16/11/2017 09:00

That's it Net, aim high!I'll update the header later today or tomorrow for the latest developments.

[netcurtains] 16/11/2017 08:47

..looks like the medium term plan is to break into the FTSE 250/ 350 via organic growth and acquisitions.

If we are going for blitzkrieg growth we will be buying many of these companies on our path up to being the ONLY UK based publicly quoted education company in the FTSE 100.

[runthejoules] 16/11/2017 08:37

I like that this company's name is the sound you make when the price goes up 18% in one day. WEEEY! Glad I bought some at 28p, wish I'd bought more. GLA, looking forward to hearing what the acquisition is.

[666james] 16/11/2017 08:25

Bones 369 Thanks

[bones] 16/11/2017 08:17

To be fair to WEY, as David Massie explains, the number of shares in retail hands is tiny with the top five 3%+ shareholders being 82% of the pre-raise shares. The admin and legal costs of conducting an open offer would probably have eaten up the money raised from the small rump of retail.The bigger question is the discount. Again, the only defence I can think of is that the discussions were probably started weeks ago when the share price was in the 20p region and raising price was possibly going to be lower than that. It could be that many of the institutions had already been approached and that getting 22p was a result. Whereas in the last two weeks the price has run away a bit, possibly due to the small float in the market. I can see why it would have difficult to change the price again.That all being said, given that the raise was oversubscribed and scaled back, the company could have had a pop at a higher price. Perhaps they did not want to "gazump" what are hoped to be loyal future shareholders.Overall, given that WEY are small, raising £5m is a big deal indeed so on balance I am happy with the outcome.

[mginvestor] 16/11/2017 06:12

Hi everyone,

after being encouraged for so many years to create a ADVFN account I've finally done it! For those who follow me on twitter you will know I still hold WEY from c4p days back in January.

Mixed feelings about the poor placing price and not happy that PI's were not offered access. BUT its done and we need to focus on what the company has planned. This acquisition, if it goes ahead, should open up access to contacts for WEY into the B2B with local authorities so this could be the breakthrough that they need. I believe the price paid is reasonable.

You now have the well regarded Leon Boros as a shareholder too. Paul Scott was buying all the way until the placing announcement and has written about it last night:

[bones] 15/11/2017 22:14

666James, it is not possible to provide a link to an unnamed target company, to be fair! Target is not its name :)Given that "Target" has a million turnover and a small profit, and there are not too many online educators about that would fit the mould, I imagine you're talking of a school or similar outfit that's had a few years to get established but not for as as long as Interhigh has been around.Googling online education throws up a couple of possibilities, eg Netschool and Academy21 come up on page 1 directly behind Interhigh. Both were established after 2010 and are UK based (Reading and Stevenage respectively).Academy21 seems to be more focussed on short term contracts with local authorities etc which kind of fits with the area being flagged as high growth by WEY although it makes sense also for Interhigh and another school to combine expertise as a combo and eradicate the online competition.This is pure speculation on my part based on page 1 of Google so may be way out!

[netcurtains] 15/11/2017 21:06

666james: there are lots of possibilities, I would not like to second guess (as a second guess, it might be the company the new B2B sales person came from - totally blind guess)

[high park] 15/11/2017 17:18

Doing a little research.


free stock charts from uk.advfn.com

[666james] 15/11/2017 17:16

Has anyone got a link to this Target company we are trying to take over ? Thanks

[netcurtains] 15/11/2017 17:03

lol... dont like to be beaten.

[bones] 15/11/2017 15:43

got another 10k at 26.8p.

[bones] 15/11/2017 14:17

Nice work Net. I have a feeling I was a bit previous with my purchase having speculated a possible fall back price of 25p this morning! In the overall scheme of things, it's hopefully irrelevant.

[douglas fir] 15/11/2017 13:59

Wey Education plc
INTERVIEW: Wey Education Plc Fundraise and Possible acquisition

hxxps://www.directorstalkinterviews.com/interview-wey-education-plc-fundraise-possible-acquisition/412740002


Home » Interviews » INTERVIEW: Wey Education Plc Fundraise and Possible acquisition
Wey Education plc
INTERVIEW: Wey Education Plc Fundraise and Possible acquisition

Posted by: giles.arbor 15th November 2017

Wey Education Plc (LON:WEY) Chairman David Massie talks to DirectorsTalk about it’s recent fundraise and a possible acquisition. David expands on the fundraising, explains why the price was discounted and no open offer, what the funds will be used for, further areas of marketing, the types of marketing we can expect and what other news we can expect in the coming months.



Further to the accelerated bookbuilding process announced earlier today, Wey Education is pleased to announce that it has raised gross proceeds of £5 million through a significantly oversubscribed and scaled back placing (the “Placing”;) with institutional and other investors of 22,727,273 new ordinary shares (the “New Ordinary Shares”) at a price of 22 pence per Placing Share (the “Placing Price”). The Placing Price represents a discount of 33.3 per cent. to the closing price on 14 November 2017, the last trading day prior to this announcement, and a discount of approximately 7.1 per cent. to the average closing price of the last 30 trading days. The New Ordinary Shares will represent approximately 18 per cent. of the Enlarged Issued Share Capital on Admission (assuming no other issuance of ordinary shares prior to Admission).

The proceeds of the Placing will provide additional working capital resources to the Group and subject to completion of the acquisition, fund the consideration earn-out (if any) in respect of the possible acquisition detailed in the Company’s earlier announcement today. A further announcement will be made about such in due course.

Application for admission to trading on AIM for the 22,727,273 New Ordinary Shares being issued pursuant to the Placing has been made and Admission is expected to take place on 20 November 2017. The New Ordinary Shares will rank pari passu with the existing Ordinary Shares in issue.

In accordance with the provisions of the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the Company confirms that, following the Placing, its issued share capital will comprise 126,270,507 Ordinary Shares of 1 pence each. All of these Ordinary Shares have equal voting rights and none of the Ordinary Shares are held in Treasury. The total number of voting rights in the Company will therefore be 126,270,507 on Admission.

Wey Education’s Chairman, David Massie, said: “We are very happy to have concluded this placing and to have attracted a number of significant institutional investors who we hope and trust will support the Company in the long term as we pursue our plan to build Wey into a leading international educational services provider. The additional working capital provides the board with the confidence to pursue a number of new initiatives particularly regarding increased marketing in the UK and overseas, which we hope will generate substantial returns over the medium term. Negotiations regarding the proposed acquisition continue and we will make a further announcement regarding such in due c

[netcurtains] 15/11/2017 13:36

just bought a couple of grands worth just to get them cheaper than bones.. :-)
(I know its a token amount but I have xxx already)

[netcurtains] 15/11/2017 13:20

I think its a given WEY can make more from the firm then it can by itself (just look at InterHigh).

Both firms on rocket growth could equate to a price in the 40s or 50s by early next year.

[woodcutter] 15/11/2017 13:17

ts2 you need to look at the operational gearing of the business to see the potential. that's why the share price has been flying.

If/when they buy this business the synergies, as pointed out, will result in most if not all the admin costs being taken out of the acquired business. They are buying revenue and with costs taken out greater improved profit imv.

woody

[bones] 15/11/2017 12:44

tsmith... it's future profits what count :)

Plus assumed synergies as was mentioned earlier by someone.

[tsmith2] 15/11/2017 12:34

Look at multiple they are paying... toppy

[netcurtains] 15/11/2017 12:12

How do these things work? If the new investors do not sell does the price gradually go back up to the high 30s (after a few weeks)?

[bones] 15/11/2017 11:44

Bought back around 40k at 28.4p (in three bits for different accounts ISA and SIPP)

[nurdin] 15/11/2017 11:40

Placing significantly oversubscribed !

[666james] 15/11/2017 10:39

Nice one Bones