Wey Education Share Discussion Threads

[seanworld] 23/8/2018 10:31

A few concerns but overall happy with the position.

Turnover over to beat WHIreland forecast but may miss the adjusted pre tax profit.
Not by much, but as the share price had fallen 50% since interims I just hoped we would be close to estimates.

The focus seems to have moved towards the new ventures. As Mcfly has alluded to before the China J.V could be big and dwarf the UK market.

[kcr69] 23/8/2018 09:57

Microscope, I think your summary is basically spot on. I happen to think the numbers (even in an unadjusted state) are pretty positive. I get the impression David Massie et al appear a little embarrassed at not reporting a statutory profit and keep waffling a bit of a bumbling mess in trying to convince all and sundry that they are profitable.

Quite frankly they have absolutely nothing to be embarrassed about. Achieving break even on high double digit growth while investing in a future that could see revenue (and accompanying profitability) 10 fold what it is today in the relatively near term is absolutely fine with me.

[ny boy] 23/8/2018 09:33

Upside pretty big, had this a few weeks back with PHTM @ 100p, now 128p, this one is capable of having a continuous period of up days.

Good luck this evening, whoever is going please let us all know some feedback.

Going away for bank holiday so same as last year, not able to go, I wish they would change the update to mid Sept!

[netcurtains] 23/8/2018 08:58

15 schools in china as a TRIAL!!!

Each school typically has 1000 kids

That trial is theoretically 50 times the size of InterHigh.

LOL got that wrong...

15 TIMES the size of interhigh ..... but only one class per school..

This is truely potentally MASSIVE...

and we know sometime in SEPTEMBER.... Which is just days away


Google says average class size in China is 48.5 so 48.5 * 15 = 750.

750 is not quite doubling the size of InterHigh (1000 ish) but its a mighty big push in that direction...

AND THAT IS A TRIAL!!!!!! What about winning the main contract????

Suppose InterHigh . (think about) won a contract for all the state schools in the chinese equivalent of a county or metropolitan area...


100 schools? 200 500? 1000? How big would such an order be? Could InterHigh ever recruit enough language teachers

[abergele] 23/8/2018 08:32

Typical sells into news,, a very good "rns" in my view,,
I shall be holding and accumulating when funds are available..gla lth's

[microscope] 23/8/2018 08:08

A real mixed bag. Highlights are the cash figure, much better than I expected, and higher than forecast turnover, along with pleasing international progress. Some more questionable sections too, I think. Basically seems to me the adjusted profit is struggling to meet the 480k forecast with estimate of 400-500k. Close enough though, but the problem with that is that they appear to me to have stripped out virtually everything that cost money this year and 'won't recur'. International set-ups, advertising (really?), etc. Pretty much carte blanche. The final figure bottom line when we get it might actually look quite ugly.Overall positive but still with valuation questions to be answered.Why all the advertising if interthigh numbers have as they say become largely irrelevant? At some point they say, we educated about 2,000 students this year. What if it was 5,000, or 500? Surely even on their mix and match model, numbers are relevant? I don't get that.

[qs99] 23/8/2018 08:07

Long way to go IMO....still much to prove, have sold my small holding this am, probably wrong, but any slight delay on "delivery" and now more risk on down-side. Will monitor for another entry point as love the business model, I just wonder how long it is really taking to get proper underlying profit/cash traction. DYOR and GLA.

[babbler] 23/8/2018 08:01

Can't buy. Can sell the lot.

[mcfly79] 23/8/2018 07:57

Also confirmation that revenue from China is expected to be meaningful this coming year:'With first sales expected in September 2018, it anticipated that China should make a meaningful contribution to revenues next year but the extent of this contribution will be dependent on timing of new contracts. In this initial year we have priced the business to grow market share. We remain excited about the opportunities for the Group from China which are considerable in the medium term.'I hope we get an updated note from WHIreland at some point. Will be interesting to see the forecasts.

[babbler] 23/8/2018 07:51

16p ask pre open...

[mcfly79] 23/8/2018 07:46

On China I'm very pleased with the size of the initial launch and that they have schools lined up for next month. I think this is major news.'The initial launch this September will be to around 50 classes in 15 schools. This is viewed as a trial towards greater adoption in other cities across China in due course' Clearly the economics will be difference compared to the service provided in the UK but it highlights the scale of the opportunity. From day 1 the number of pupils being taught by WEY in China could almost be the same as at the total number of pupils being taught worldwide by InterHigh.

[ny boy] 23/8/2018 07:41

Happy with that update, certainly worth accumulating down at these levels, like the China news, should be a dynamic market, economies of scale, Nigeria an interesting development too. Dyor as usual

[mcfly79] 23/8/2018 07:35

Good update.WHIreland we're forecasting £3.5m of cash so actual figure of £4m is above expectations.

[babbler] 23/8/2018 07:32

Got to spend money to make money as they say...

[amt] 23/8/2018 07:25

Still burning cash although maybe only a couple of hundred thousand.

[bigboyblue] 23/8/2018 07:23

A very positive update this morning in my opinion. In particular it seems likely that the Nigeria and China ventures, which were poo pooed by some when they were initially announced, are progressing nicely. I also believe that a lot more care has been taken in the composition of this RNS than in the last one.

[mcfly79] 22/8/2018 19:08

So the latest forecast for the current year is as follows:

Revenue: £4.1m
Adjusted pre tax profit: £0.48m
Adjusted EPS: 0.39p

As is normal the company is stripping out share based payments, amortisation of intangibles and acquisition costs to arrive at the adjusted profit but the company is also stripping out 'the higher than trend expenditure on marketing and other matters flagged up at the time of the November placing to substantially boost group revenues and underlying profits over the next three years'. This is on the basis that it gives a fairer reflection of underlying profits. Clearly this is somewhat subjective. Therefore the basic eps figure could be a loss.

Clearly the company is investing some of their large cash pile to drive growth over the next few years and that is why I think the best way to judge the company at the moment is on progress in growing the business, both in terms of a healthy increase in the InterHigh numbers for the new academic year and progress made on the international and ecademy fronts.

[mcfly79] 22/8/2018 18:51

Had me excited for a minute!

[seanworld] 22/8/2018 18:48

Apologies McFly you are correct.

The figures I have on file are incorrect.
I did think when posting EPS of 0.75 it seemed high

[mcfly79] 22/8/2018 18:47

sean,

I think you're picking up the very old forecast from the 31/10/17 note.

[mcfly79] 22/8/2018 18:42

Hi sean,Where are you getting those figures from? The latest WHIreland note I have (released at the time of the interims) has the following forecast for the current yearRevenue: £4.1mAdjusted pre tax profit: £0.48mAdjusted EPS: 0.39pThe profit and eps figures stayed the same as the previous forecast but on a lower revenue figure.

[seanworld] 22/8/2018 18:31

WHIreland updated projections:

2018 (est): Rev 4.1: Pre-tax Profit 0.8; EPS 0.75



From May Interims:

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.

[microscope] 22/8/2018 18:08

I hear you, McFly, next year's prospects will indeed be of interest, both internationally and domestically.

That said, personally it's not my immediate priority. We talked some time ago of not running before they walk, and the nuts and bolts now need to be seen to be in place, and delivering, first. As such tomorrow morning's promised RNS will for me be measured first and foremost by how the main businesses are doing, and where we are at re-cash.

From the header these were the latest WH Ireland projections for the current financial year (Unless anyone has seen anything more recent?)

'2018 (est): Rev 4.8: Pre-tax Profit 0.48; EPS 0.39'.

I think cash was said to be 4.3 million around interims. I'd expect that may be a bit lower now, which would be fair enough, given advertising and other expenditure, so will be interesting to see what the cash position is too.

Fingers crossed for a decent update tomorrow :)

[netcurtains] 22/8/2018 16:40

With this app in conjunction with InterHigh you have all basis covered

The AI works a bit like google maps - with thousands of user questions linked to photos the AI software has millions of example questions that might match the photo.

[netcurtains] 22/8/2018 15:37

up
just like to see the trades ... - should see more today, but who knows...