Wey Education PLC Trading Statement (9989O)
2019年2月4日 - 9:30PM
RNSを含む英国規制内ニュース (英語)
TIDMWEY
RNS Number : 9989O
Wey Education PLC
04 February 2019
04 February 2019
WEY EDUCATION PLC
("Wey Education or the "Company" or the "Group")
Strategic Review, Trading update and potential acquisition
Wey Education plc (AIM:WEY), the online educational services
group is pleased to update the market on the result of a strategic
review and current trading as well as advising of a potential
acquisition.
Wey Education has been expansive over the last few years,
developing a range of brands and services to be delivered in
overseas territories, particularly Africa and China. Much of the
work in these locations was undertaken by Wey's previous Chairman
and Chief Executive Officer, David Massie personally, relying on
his experience and contacts in the relevant regions. Since David's
recent sad passing, the Board has carefully reviewed the Group's
strategy in the light of the new circumstances it now finds itself
in and concluded that a more focused approach is in the best
interests of stakeholders.
The market for online education is clear to the Directors and it
is evident that we can be ambitious in growing the business in the
two areas in which we have established business, relationships and
which are, before the addition of the public company overhead,
profitable.
Both InterHigh and Academy 21 have started the financial year
with strong performance in advance of the Group's expectations. The
Board has decided that all Wey Education's business will now be
provided by either InterHigh, which is an online secondary school
or Academy 21, which provides alternative education services to
business or state entities. It is those brands under which Wey will
expedite its marketing strategy.
In respect of overseas operations, the Group, (which has always
had a level of international business) has decided to simplify its
offering and to clarify the relationships it has with third
parties. Unless compelling reasons dictate in future, the Group
intends to deal with overseas partners as a sales channel, rather
than pursue further opportunities for joint ventures and more
complex arrangements. The Directors believe there is substantial
scope for International business, both for InterHigh directly and
its new corporate offering where the Group has recruited Khurshid
Khan, an experienced senior sales professional with a background in
education technology sales.
There are some one-off costs of processing the changes in
branding, investments in overseas infrastructure and the closure of
the Group's London Learning Centre and these costs will be expensed
as an exceptional item in the Profit & Loss Account in the
current financial year. As a result, the Group will be simpler to
understand both in the investment markets and the education
market.
Following this strategic review, Group turnover for the year to
31 August 2019 is expected to be substantially below current market
expectations. Turnover is, however, expected to be in excess of
GBP5m, representing an increase of over 24% on the year ended 31
August 2018.
Expectations are that the Group's loss before tax for the year
will be somewhat greater than in 2018 due to the factors described
above. The costs of the overseas and business expansion ventures
will therefore not impact future years, leading to expectations of
profitability on an ongoing basis from the financial year to 31
August 2020. The Group is extremely well funded, having in excess
of GBP4m cash at bank as at 31 January 2019 and is expected to be
cash generative from ongoing activities. To repeat, trading in
InterHigh and Academy 21 has started strongly in this financial
year. The Board does not believe that this new business focus
should prevent it from being ambitious in growing InterHigh and
Academy 21 and part of this year's costs will be attributed to
increases in expenditure on sales and marketing activities.
With a view to its new strategy, Wey is in the process of
finalising Heads of Terms to acquire a small (turnover cGBP0.5m) UK
online education business focused on Business to Business provision
of online education, which will complement and enhance our existing
Business to Business offerings. The acquisition is scheduled to
complete in time for the commencement of the summer school term. A
further announcement will be made in due course.
The Board has confirmed the appointment of Jacqueline Daniell as
Chief Executive Officer and Barrie Whipp as Chairman. Jacqueline
founded both InterHigh and Academy 21 and has a deep understanding
of both businesses. Barrie has been a Non -Executive Director of
Wey for approximately three years and is an experienced public
company Chairman.
Barrie Whipp, Chairman, commented "I am very pleased that we
have refined and focused the strategy for Wey in a timely manner.
Our aim is to be the largest secondary school in the UK by number
of students, going on to achieve the size of a Multi Academy Trust.
We have focused on the future and, supported by our cash balance,
will pursue the opportunities in online education that are clear
and in front of us. Our platform makes us scalable and adaptable to
a wide range of education opportunities. The Directors have steered
the business carefully over a period of change management, we can
now get on with the business of attracting more students,
businesses and educational establishments to the Wey Group, where
we strive to provide excellent online education"
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
Enquiries:
Wey Education Plc
Barrie Whipp (Chairman) +44 (0) 7778 367 999
Barry Nichols-Grey (Executive Director - Finance) +44 (0) 1873 813 900
WH Ireland Limited
(Nominated Advisor and Broker)
Mike Coe/ Chris Savidge (Corporate Finance) +44 (0) 117 945 3470
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END
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