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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Wey Education Plc | LSE:WEY | London | Ordinary Share | GB00B54NKM12 | ORD 1P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 47.25 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Apr 2019 to Apr 2024
TIDMWEY
RNS Number : 7358Y
Wey Education PLC
13 May 2019
13 May 2019
WEY EDUCATION PLC
("Wey", the "Group" or the "Company")
Wey Education plc (AIM:WEY) today publishes its interim results for the six months to 28 February 2019 and reports on a number of important developments within the business.
Financial Highlights
-- Turnover up 54.7% at GBP2.70m (2018: GBP1.74m)
-- Continued strong growth in both Interhigh and Academy21, reflected in turnover and gross profit margins
-- Adjusted profit before tax on continuing operations of GBP124k (2018: GBP23k)
-- Loss after tax of GBP895k (2018: GBP153k) after exceptional items of GBP571k and GBP310k of losses from discontinued operations in London and overseas
-- Cash balances strong at over GBP4.96m (2018: GBP4.35m)
Operational Highlights
-- Wey now focuses on its two core brands, InterHigh and Academy21, and their clear market opportunities
-- Investment in academic leadership, AI and quality of educational provision -- Further development of the IT platform to enable alignment and scalability of both brands -- Accreditation of Teaching Online qualification, setting standards in education delivery
Commenting on the results, Barrie Whipp (Chairman) said "Wey is now completely focused on InterHigh and Academy21, our distinct brands for online education. With significant cash resources, and businesses with growing underlying financial performance I believe we have a great foundation for growth in our ever expanding and exciting market"
This announcement contains information which, prior to its disclosure by this announcement, was inside information for the purposes of the Market Abuse Regulation
Enquiries: Wey Education plc Barrie Whipp (Chairman) / +44 (0) 7778 367 999 Jacqueline Daniell (CEO) +44 (0) 1873 813 900 Barry Nichols-Grey (Executive Director - Finance) +44 (0) 1873 813 900 WH Ireland Limited (Nominated Adviser and Broker) Mike Coe / Chris Savidge (Corporate Finance) +44 (0) 117 945 3470
Chairman's Statement
In the first half of the financial year, Wey Education took the decision to evaluate its investments and activities in a range of wider brands and geographies. Following the illness and then sad passing of David Massie, the former Executive Chairman the Board decided that the best course of action was to concentrate on developing its two core brands in online education; InterHigh, where we provide live online schooling, and Academy 21, which provides alternative provision to educational bodies. The success of the development of these two businesses is reflected in the growth of the Wey Group at the turnover level, where we achieved 54.7% growth, with a full six month contribution from Academy 21 in the current period.
The Company's vision is for the Wey Group to become a provider of online education to a level where it is, in terms of numbers of students, the largest secondary school in the country and for it to go on to become the size of a Multi Academy Trust. This can only be achieved by the provision of excellent teaching and learning, and I am pleased to report that the appointment of Wayne Owens in November 2018 as Executive Head Teacher, working alongside the Academic Advisory Board, led by Dame Erica Pienaar, has seen positive improvements in the quality of our provision. We have a strong ethos of continuous improvement in this area and we aim to set the standard for online education.
InterHigh continues to grow its student numbers and we have embedded into its platform the ability to teach older primary school students which, along with its sixth form capabilities, means that parents can trust InterHigh to manage two life changing periods in education.
Academy21 also continues to grow. Its offering of alternative provision is an area where local authorities and other bodies find Wey an ideal solution to a range of issues such as capacity, funding and provision to students in difficult circumstances. The Academy21 business will be fully integrated into the Wey platform for the new school year starting in September 2019 allowing for margins to be improved whilst maintaining educational standards.
Whilst we have decided not to pursue investments in overseas territories, Wey is very much "open for business" to international opportunities. Fundamentally, location is not a barrier to the provision of our services and we have opportunities to increase export sales, without committing to infrastructure. Our brands have been enhanced and simplified to ensure consistency in marketing campaigns, in which we intend to invest more resources to promote our longer-term strategy. We are delighted to have entered into a partnership with Olympic athlete and commentator Colin Jackson as Wey's brand ambassador.
Our IT platform is allowing us to explore AI opportunities and we have also recently received accreditation for our Teaching Online qualification. This will add to our goal of being capable of achieving early regulatory standards for online education. Regulation of home schooling is very much a matter of concern at the highest levels of government and it is our desire that Wey is seen as a gold standard in online provision.
Financially, the Board has taken the decision to write off the investments in operations in London and overseas. This amounts to GBP571,000 of exceptional costs and GBP310,000 of costs classified as exceptional items or losses from discontinued operations, however the Board believes there are no further significant costs related to this challenging process. The Company's cash balance of GBP4.96m means that we can now focus on the future growth of InterHigh and Academy21 and invest in marketing and new sales representation respectively.
Financial Results
Hot Features
Premium
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
28 February 28 February 31 August 2018
2019 2018
(restated) (restated)
GBP'000 GBP'000 GBP'000
Total revenue 2,697 1,743 4,192
Gross profit margin 56.4% 51.9% 53.5%
Adjusted EBITDA
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
28 February 28 February 31 August 2018
2019 2018
(restated) (restated)
GBP'000 GBP'000 GBP'000
Operating
Profit/(Loss)
before tax
from
continuing
operations (586) (118) (63)
Add back:
Depreciation 33 15 36
Amortisation
of acquired
intangibles 80 80 160
Equity share
based
awards 59 18 95
Exceptional
income - - (8)
Exceptional
costs 571 43 61
Adjusted
EBITDA 157 38 281
Adjusted PBT
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
28 February 28 February 31 August 2018
2019 2018
(restated) (restated)
GBP'000 GBP'000 GBP'000
Operating
Profit/(Loss)
before tax
from
continuing
operations (586) (118) (63)
Add back:
Amortisation
of acquired
intangibles 80 80 160
Equity share
based
awards 59 18 95
Exceptional
income - - (8)
Exceptional
costs 571 43 61 Adjusted PBT 124 23 245 Adjusted EPS (p) 0.10 0.02 0.20
Exceptional costs are broken down as follows:
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
28 February 28 February 31 August 2018
2019 2018
(restated) (restated)
GBP'000 GBP'000 GBP'000
Termination and restructuring 335 - -
costs
Cost of terminating 227 - -
our London operations
Capital reorganisation
& other legal costs 9 - 18
Acquisition costs - 43 43
---------------- ---------------- ----------------
TOTAL 571 43 61
---------------- ---------------- ----------------
Comparative figures for the prior period have been restated to reclassify the operations in Kenya, China and Nigeria as discontinued operations in accordance with IFRS5.
Outlook
InterHigh is a leader in the provision of online education offering all its students the opportunity for a flexible, accessible and personal learning solution. In addition, we help educate students engaged in the arts, sports and those that are based internationally. All of these markets represent outstanding opportunities for us to grow the business and with government increasingly concerned about quality and standards, InterHigh is extremely well placed to offer education where regulators and institutions can observe well managed, planned and safe education for students
In Academy21, we prove that all children can benefit from education, even where they might be unable to receive teaching in subjects that they require or where they simply do not fit into the current educational structure. Academy21 offers institutions options that can be very difficult to find elsewhere.
In both of Wey's businesses, we have boundless opportunities and with our narrowed focus we aim to take full advantage of the excellent platform we have built.
The Board is pleased to have received the support of many stakeholders in its strategy and now looks forward to planning growth in our core business.
Wey Education plc
Consolidated Statement of Comprehensive Income
For the six months ended 28 February 2019
Unaudited Unaudited Unaudited
6 months 6 months ended year ended
ended
28 February 28 February 31 August
2019 2018
(restated) 2018
(restated)
GBP'000 GBP'000 GBP'000
Total revenue 2,697 1,743 4,192
Cost of sales (1,177) (838) (1,950)
Gross profit 1,520 905 2,242
Administrative expenses (1,476) (962) (2,157)
Operating profit/(loss) before
non- recurring items: 44 (57) 85
Equity share based awards (59) (18) (95)
Exceptional income - - 8
Exceptional costs (571) (43) (61)
-------------------------------------- ------------- ---------------- ------------
Operating profit/(loss) for
the period before taxation (586) (118) (63)
Finance income 1 - -
Profit/(loss) before tax (585) (118) (63)
Taxation - - 33
------------- ---------------- ------------
Total comprehensive loss
for the period from continuing
activities (585) (118) (30)
Loss for the period from
discontinued activities (310) (35) (166)
Total loss for the period (895) (153) (196)
------------- ---------------- ------------
Basic and diluted loss per
share (p) from continuing
operations (0.44) (0.10) (0.02)
Basic and diluted loss per
share (p) from discontinued
operations (0.24) (0.03) (0.13)
Unaudited Consolidated Statement of Financial Position
As at 28 February 2019
Unaudited Unaudited Audited
As at As at As at
28 February 28 February 31 August 2018
2019 2018
GBP'000 GBP'000 GBP'000
NON CURRENT ASSETS
Goodwill 1,630 1,643 1,630
Intangible assets 496 642 563
Tangible fixed assets 187 126 189
------------- ------------- ----------------
Total non current assets 2,313 2,411 2,382
------------- ------------- ----------------
CURRENT ASSETS
Trade and other receivables 1,497 1,126 732
Cash and cash equivalents 4,955 4,346 4,225
------------- ------------- ----------------
Total current assets 6,452 5,472 4,957
------------- ------------- ----------------
TOTAL ASSETS 8,765 7,883 7,339
------------- ------------- ----------------
EQUITY AND LIABILITIES
EQUITY AND RESERVES
Issued share capital 1,307 1,267 1,307
Share premium 1,515 7,352 7,515
Option reserve 160 95 110
Retained earnings 2,606 (2,478) (2,499)
------------- ------------- ----------------
Total equity and reserves 5,588 6,236 6,433
------------- ------------- ----------------
CURRENT LIABILITIES
Trade and other payables 432 336 203
Accruals, deferred
income, receipts in
advance and refundable
deposits 2,095 1,311 703
Provisions 650 - -
------------- ------------- ----------------
Total current liabilities 3,177 1,647 906
------------- ------------- ----------------
TOTAL EQUITY AND LIABILITIES 8,765 7,883 7,339
------------- ------------- ----------------
Unaudited Consolidated Statement of Changes in Equity
At 28 February 2019
Share Capital Share Premium Share Option Reserve Retained Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 31 August 2017 1,040 2,868 77 (2,324) 1,661
Loss for the period (153) (153)
Proceeds from share
issues 227 4,772 - - 5,000
Expenses associated with
share issue - (288) - - (288)
Equity based share
awards - - 18 - 18
-------------- -------------- --------------------- ------------------ --------
At 28 February 2018 11,267 7,352 95 (2,478) 6,236
-------------- -------------- --------------------- ------------------ --------
At 31 August 2018 1,307 7,515 110 (2,499) 6,433
Loss for the period (895) (895)
Capital reconstruction
(note 8) - (6,000) - 6.000 -
Equity based share
awards - - 50 - 50
-------------- -------------- --------------------- ------------------ --------
At 28 February 2019 1,307 1,515 160 2,606 5,588
-------------- -------------- --------------------- ------------------ --------
Unaudited Consolidated Cash Flow Statement
For the six months ended 28 February 2019
Unaudited Unaudited Audited Year
6 months ended 6 months ended ended
28 February 28 February 31 August 2018
2019 2018
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit/(loss) before
taxation (895) (153) (229)
Adjustments for:
Amortisation 104 95 189
Depreciation 33 15 36
Equity based share
payments 50 18 54
Taxation - - 33
Changes in working
capital:
Trade and other receivables (765) (614) (206)
Trade and other payables 229 69 (65)
Accruals, deferred
income, receipts in
advance and refundable
deposits 1,392 558 (51)
Provisions 650 - -
---------------- ---------------- ---------------------
Net cash generated
from/(used in) operating
activities 798 (12) (239)
---------------- ---------------- ---------------------
Cash flow from financing
activities
Issue of shares - 4,711 4,914
Net cash generated
from financing activities - 4,711 4,914
---------------- ---------------- ---------------------
Cash flow from investing
activities
Acquisition of business
net of cash - (1,338) (1,338)
Interest received 1 - -
Purchase of intangible
assets (37) - (15)
Purchase of fixed assets (32) (20) (102)
Net cash (used in)
investing activities (68) (1,358) (1,455)
---------------- ---------------- ---------------------
Net increase in cash
and cash equivalents 730 3,341 3,220
Cash and cash equivalents
brought forward 4,225 1,005 1,005
Cash and cash equivalents
carried forward 4,955 4,346 4,225
---------------- ---------------- ---------------------
Notes to the Interim Results
For the six months ended 28 February 2019
1. The interim results (approved by the Board of Directors and authorised for issue on 13 May 2019 are neither audited nor reviewed and do not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006. The financial information for the preceding period is extracted from the statutory accounts for the financial year ended 31 August 2018. The audited accounts for the year ended 31 August 2018, upon which the auditors issued an unqualified opinion, and which did not contain a statement under Section 498 (2) and (3) of the Companies Act 2006, have been delivered to the Registrar of Companies. As permitted, this interim report has been prepared in accordance with UK AIM Rules and not in accordance with IAS 34 'Interim Financial Reporting', therefore it is not fully in compliance with IFRS.
2. Wey Education plc is a public limited company incorporated in the United Kingdom. The Company is domiciled in the United Kingdom and its ordinary shares are traded on the AIM market of the London Stock Exchange plc.
3. The consolidated interim results have been prepared in accordance with the recognition and measurement principles of IFRS including standards and interpretations issued by the International Accounting Standards Board, as adopted by the European Union. They have been prepared using the historical cost convention.
4. The preparation of the interim results requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date. If in the future such estimates and assumptions, which are based on management's best judgement at the reporting date, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. The interim results are presented in sterling and all values are rounded to the nearest thousand pounds (GBP'000) except where otherwise indicated.
5. The interim results of the Group for the period ended 28 February 2019 have been prepared in accordance with the accounting policies expected to apply in respect of the financial statements for the year ending 31 August 2019.
6. There is no tax charge for the period due to the availability of tax losses brought forward.
7. The basic earnings per share is calculated on the weighted average number of shares in issue during the period. The weighted average number of ordinary shares in issue for the six months to 29 February 2019 was 130,707,120 shares (28 February 2018 : 116,650,560 shares 31 August 2018: 122,934,180 shares).
8. On 21 December 2018, the Company completed a capital reorganisation, transferring GBP6,000,000 from share premium to retained earnings. This puts the Company in the position of having distributable reserves.
9. Copies of this report will be available to download from the investor relations section of the Company's website www.weyeducation.com.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
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(END) Dow Jones Newswires
May 13, 2019 02:00 ET (06:00 GMT)
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