Wey Education Share Discussion Threads

[thechurch333] 08/5/2018 16:11

How to crash your share price in 3 easy steps:
Step 1. Miss numbers
Step 2. Pretend you haven't missed numbers by fiddling the figures
Step 3. Tell everyone the numbers aren't important (watch the interview...unbelievable)

The only consolation is that management are significant shareholders so will be sharing the financial pain.

[pictureframe] 08/5/2018 16:03

China & Nigeria......enough said.

[microscope] 08/5/2018 15:49

Alphabeta you're right, 1.03 million. Not sure where it's coming from then. Good question for tonight.

Good point about enrolment Net, that would be why they say that the numbers are weighted to second half. Would be interesting to know the anticipated split first half to second half split eg 30/70...

[davemac3] 08/5/2018 15:24

a drop of 1/3 in share price should make for an interesting investor's evening!

[netcurtains] 08/5/2018 15:08

Will do mcfly79:

I intent to talk to them about: Virtual Reality (ticker VRE), improving some SEO content on some of their pages, having an App presence (phones are used 75% more than laptops) but i will also listen to what they have to say.

Exciting times!

[mcfly79] 08/5/2018 15:06

Be grateful for any feedback from the investor event tonight. Especially any details on the China JV.

Overseas so can’t make it.

I’ve added substantially to my holding today.

[zho] 08/5/2018 14:30

Analysis and reader comments at

[alphabeta4] 08/5/2018 14:25

I would be surprised if they were acquisition related as the annual t/o for it was c£1.03m from memory.

[microscope] 08/5/2018 14:15

Wow lots to take in here, both good and bad imho...

Perhaps that's the way to try to make sense of so many developments since the last report. Apologies, i might go on a bit....

These are my entirely personal observations, please dyor (I know you will anyway!) and feel free to say I'm spouting rubbish :)

GOOD: Margins are on the improve in the domestic businesses, so, while the numbers themselves might be described as bland (either side of break even depending on your preference for adjusted or operating profits), at this stage they are much less of a concern than more important aspects, at least to me.

The acquisition is exceeding expectations and expected to achieve larger than expected turnover (no mention of profits) for the current year.

Cash is healthy at 4.3 million after the fundraising, giving them a war chest to spend on appointments, acquisitions and advertising.

The establishment of a business footing in both Nigeria and China should have longer term benefits, potentially substantial if your investment outlook is beyond 2018/19, while Infinity has announced its first contract (also in China).

NOT SO GOOD/BAD IF YOU PREFER: I remember someone on here after the last investor evening saying that analysts came away with the impression that the company was trying to run before it could walk. I find it extremely hard to argue now with that. It's good that they've established a foothold internationally, but they are talking very modest scale ('first pupils' in Nigeria next year, and no profits in China till after 2018/19

And the point about that is that the core businesses in the UK are not delivering. This paragraph, buried deep in the report, for me is the most significant in the whole report, and the reason behind the share price fall.

"Turnover in the Group's core businesses increased 23% over the equivalent period in 2016/17 although in terms of profitability margin growth compensated for the sales shortfall. Overall for the full year, and notwithstanding the additional costs flagged above, we remain on track to meet our expectations for adjusted profitability for the year although this is likely to be achieved on lower than previously planned revenues"

Running before you can walk. That, and the trade receivables (acquisition related?) would be my concerns.

Everywhere you read, there is talk of more marketing/recruitment costs over the short term. Am fine with that, but there must imho be some doubt about them making the full year operating profit forecast as a result.

PERSONAL CONCLUSION: Entirely imho and no advice intended, please!!

For what it's worth, this is now the second set of numbers in a row to leave me fairly unsure. Very tricky to value, if you take the long term view and believe in the global expansion strategy, at this level the shares are too cheap, after the fall today.
If you want rapid growth in 12-24 months however, you're probably not going to get it. The domestic, core, businesses need significant attention in the short term

It's a curate's egg, I'll be fascinated to hear feedback from the investors evening.

[buywell3] 08/5/2018 14:02

Dealing with or in China is not a given

In fact IMO it is very high risk

[barnetpeter] 08/5/2018 13:54

Looks like the short term lows have been broken and I can now see a fall to about 13p....which would be about 15m mkt cap. That still might be too high if the UK is ex growth.

[netcurtains] 08/5/2018 13:40

I bought a few more.

[netcurtains] 08/5/2018 12:44

Well done Woody! I know nothing about accounts and stuff like that so I dont see the bad side (alas).


But to me I think the JUNIORS sounds like its all money coming into INTERHIGH with little or no extra marketing money required. Thats all money straight into the business - growth here and now - this minute (taking people on for Sept).

The B2B business is going great guns.

Nigeria also sounds like a much easier entry then China. We could get growth coming from Nigeria pretty fast - When Nigerians like something they go for it quick. Getting into a UK school without leaving Nigeria could be a big winner amongst the middle classes (with a bit of oil money).

I'm not sure about China ... But will no doubt hear more tonight.

[woodcutter] 08/5/2018 10:58

I sold well over half my holding this morning in several trades. The UK growth wasn't as impressive as I'd hoped indeed it appears to be slowing quite considerably. I also feel there's too much emphasis on the foreign growth at the expense of UK growth this takes longer and is more costly and higher risk.

Receivables were also significantly higher too.

You have to bank profits sometime.

If China breaks +ve then clearly there's potential for a huge upside but I'm happy to wait for that to materialise. If it does then I'll begin to accumulate again but in the meantime there's the possibility the share price will drift.

woody

[mcfly79] 08/5/2018 10:57

Surprised at the drop.Inter high revenue not up as much as expected but profitability will meet forecasts.B2B business outperforming expectations.Overall profit forecast should be met.The really positive news for me is that the company has made significant progress towards establishing a substantial Chinese business. The figures involved will swamp everything even if it is only a moderate success. VIP Kid (established in 2013) was expected to have turnover of $750m last year from online lessons to Chinese kids. To put into perspective Interhigh is forecast to have turnover of £3.2m this year.

[bones] 08/5/2018 10:54

I will update header when I get a moment this week, I hope!

[bones] 08/5/2018 10:53

Thanks Denis, here it is:

[denisthamenis] 08/5/2018 10:42

Interview posted this morning on 'Directors Talk' website worth a listen.

[666james] 08/5/2018 10:41

Net 960 I did say I would leave it to see how the market reacted. I was disappointed in Feb 2018 and I was right then but the two contracts do look promising so I will leave things as they are for now. I would really appreciate any feed back from to nights meeting.

[barnetpeter] 08/5/2018 10:26

Too early it seems.....

[barnetpeter] 08/5/2018 10:04

First time buy for me here today and i got in at just over 21p. Halved since January and a fair price now I think.

[netcurtains] 08/5/2018 09:34

666james: I dont know about you mate but I only ever buy stocks on Jam tomorrow stories. If it was jam today I was after I would buy FTSE... Give yourself a day or so and you'll see that actually these are all good news stories.

boonkoh: We have been saying for MONTHS they could improve InterHighs SEO via getting HOME EDUCATION and HOME SCHOOL in more of their "title" tags and Meta Description tags thus ramming them up to near the top of searches. Its a cheap fix... I'd be worried if the solution was more expensive.
lol
chill, they are recruiting like made, they obviously know its going well.

[boonkoh] 08/5/2018 09:29

No update on InterHigh? I thought they spent loads of marketing at Waterloo Station in Jan... Can we assume that InterHigh enrollment rates is not good this year?

[666james] 08/5/2018 09:17

953 alphabeta4 I too was a bit worried back in Feb2018 when the normal update was not given and I felt something might be a miss. The two deals look very good but it seems it's "jam again tomorrow". Not sure what to do about this one. I like David Massie and he comes over very well but that could be my problem...believing all that is said.
I will sit tight for now but may start selling after a few days depending on how the market reacts to the results