TIDMWEY
RNS Number : 5474M
Wey Education PLC
12 May 2020
12 May 2020
WEY EDUCATION PLC
("Wey", the "Group" or the "Company")
Wey Education plc (AIM:WEY) today publishes its interim results
for the six months to 29 February 2020 and reports on a number of
important developments within the business.
Financial Highlights
-- Turnover increased by 43% to GBP3.87m (2019: GBP2.70m)
-- Continued strong growth in both Interhigh and Academy21,
reflected in turnover and gross profit margins
-- Profit before and after tax of GBP215k (2019: loss after tax
of GBP895k after exceptional items and discontinued operations)
-- Cash balances over GBP6.6m (2019: GBP4.9m)
-- Strategy to take advantage of enhanced awareness and opportunities in online education.
Operational Highlights
-- Expanded Executive Team in place to drive future growth
-- Teaching Online qualification implemented
-- Enhanced education model and delivery strategy for growth under way
Commenting on the results, Barrie Whipp (Chairman) said "Wey
continues to grow, providing education to a wider range of learners
in an environment where online education is experiencing more
awareness than ever before. Our financial results demonstrate that
our strategy is sound and our strategies are ambitious for further
growth."
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
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)
James Joyce / Chris Savidge (Corporate
Finance) +44 (0) 20 7220 1698
Chairman's Statement
The interim results demonstrate that our focussed strategy is
attracting an increasing number of students to Wey. We prioritise a
safe, learner-focused online education to students from diverse
backgrounds and locations.
In InterHigh, we have seen strong demand from parents and
students who now see online education as a genuine alternative. The
fact that we have been providing this type of education for nearly
fifteen years demonstrates our true understanding of the
requirements to succeed. I am pleased that we now provide an
education to students in the latter years of primary education
through to sixth form.
In Academy 21, an increasing number of local authorities and
institutions now invest in our offering where we provide a true
form of alternative provision, especially given the increasing
numbers of instances where learners cannot fit within the
traditional education environment. Our expanded sales team is now
more able to cover the entire country and we are hopeful that our
wider geographic presence will facilitate more growth.
Revenue growth remains strong and is clearly demonstrated in the
figures. Turnover has increased across both brands in our Company
and gross margins have seen a small improvement. It should be noted
that current year student additions also solidify our base revenue
in future years.
Our cash position is very strong and our balance sheet is well
structured, with no debt. I was delighted to welcome some new,
well-respected institutions to our shareholder base this year, a
true indicator of the awareness and respect Wey now enjoys.
At the beginning of the period, the Board took the decision to
review and widen our executive team to enable us to grow to the
next level. We perceived that we needed to review our educational
model, to ensure that we could adopt more interactive and engaging
content and that we needed to add a senior marketing professional,
the first in our history. I am pleased to say that Dr Sara de
Freitas and Esther Clark are already making positive changes to our
pedagogy and persona and we hope to see more benefits as their time
with Wey goes on.
Growth in revenues without a continued focus on quality is a
constant spectre for a good education provider and we are highly
cognisant that we must keep learners safe, in a compliant
environment with expert teaching. Our introduction of the ATHE
approved Teaching Online qualification saw its first cohort pass
with flying colours this year and the qualification is now part of
our teachers continued professional development.
Landmarks have been achieved though the development and launch
of Wey's revised education model, building an educational
infrastructure for delivering a world-class education. Students are
now able to experience a sequence of learning techniques reflected
not only in the teaching approach but also the teaching mode and
technology enhancements utilised.
Recent global challenges have ensured that online education is a
subject more in the public eye than ever before. Whilst there will
be macro-economic factors in play for an extended period, more
people are becoming aware that online education is a real
possibility and that organisations cannot simply advise that
materials are available online. We continue to focus on our IT
Strategy of a single Wey platform with excellent usability and
materials. Safe, compliant providers with high quality teaching
will certainly benefit from the awareness created in these
challenging times.
Financial Results
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
29 February 28 February 31 August
2020 2019 2019
GBP'000 GBP'000 GBP'000
Total revenue 3,870 2,697 6,049
Gross profit margin 62.0% 56.4% 59.5%
Adjusted PBT
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
29 February 28 February 31 August
2020 2019 2019
GBP'000 GBP'000 GBP'000
Operating
Profit/(Loss)
before tax from
continuing
operations 218 (586) (383)
Add back:
Amortisation of
acquired
intangibles 74 80 160
Equity share based
awards 38 59 109
Exceptional costs - 571 436
Adjusted PBT 330 124 322
Adjusted EPS (p) 0.24 0.10 0.25
Wey Education plc
Consolidated Statement of Comprehensive Income
For the six months ended 29 February 2020
Unaudited Unaudited Audited
6 months 6 months year
ended ended ended
29 February 28 February 31 August
2020 2019 2019
GBP'000 GBP'000 GBP'000
Total revenue 3,870 2,697 6,049
Cost of sales (1,469) (1,177) (2,447)
Gross profit 2,401 1,520 3,602
Administrative expenses (2,145) (1,476) (3,445)
Other income - - 5
Operating profit/(loss) before
non- recurring items: 256 44 162
Equity share based awards (38) (59) (109)
Exceptional costs - (571) (436)
----------------------------------------- -------------------- ------------- -----------
Operating profit/(loss) for
the period before taxation 218 (586) (383)
Finance expense (4) - -
Finance income 1 1 2
Profit/(loss) before tax 215 (585) (381)
Taxation - - 8
-------------------- ------------- -----------
Total comprehensive profit/(loss)
for the period from continuing
activities 215 (585) (373)
Loss for the period from
discontinued activities - (310) (312)
Total profit/loss for the
period 215 (895) (685)
-------------------- ------------- -----------
Earnings/(loss) per share
for profit/(loss) from continuing
operations
* Basic earnings per share 0.16 (0.44) (0.29)
* Diluted earnings per share 0.15 (0.44) (0.29)
Basic and diluted loss per
share (p) from discontinued
operations - (0.24) (0.24)
Unaudited Consolidated Statement of Financial Position
As at 29 February 2020
Unaudited Unaudited Audited
As at As at As at
29 February 28 February 31 August
2020 2019 2019
GBP'000 GBP'000 GBP'000
NON CURRENT ASSETS
Goodwill 1,630 1,630 1,630
Intangible assets 357 496 451
Tangible fixed assets 366 187 171
------------- ------------- -----------
Total non current assets 2,353 2,313 2,252
------------- ------------- -----------
CURRENT ASSETS
Trade and other receivables 1,098 1,183 498
Other receivables 241 314 237
Cash and cash equivalents 6,622 4,955 4,961
------------- ------------- -----------
Total current assets 7,961 6,452 5,696
------------- ------------- -----------
TOTAL ASSETS 10,314 8, 765 7,948
------------- ------------- -----------
EQUITY AND LIABILITIES
EQUITY AND RESERVES
Issued share capital 1,382 1,307 1,312
Share premium 1,652 1,515 1,530
Option reserve 166 160 201
Retained earnings 3,004 2,606 2,716
------------- ------------- -----------
Total equity and reserves 6,204 5,588 5,759
------------- ------------- -----------
NON-CURRENT LIABILITIES
Lease liabilities (note 129 - -
9)
Total non-current liabilities 129 - -
CURRENT LIABILITIES
Trade and other payables 500 432 324
Accruals 375 112 622
Deferred income 1,783 1,299 25
Receipts in advance 121 71 453
Refundable deposits 1,155 613 765
Provisions - 650 -
Lease liabilities 47 - -
------------- ------------- -----------
Total current liabilities 3,981 3,177 2,189
------------- ------------- -----------
TOTAL EQUITY AND LIABILITIES 10,314 8,765 7,948
------------- ------------- -----------
Unaudited Consolidated Statement of Changes in Equity
At 29 February 2020
Share Capital Share Premium Share Option Reserve Retained Earnings Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
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
-------------- -------------- --------------------- ------------------ --------
At 31 August 2019 1,312 1,530 201 2,716 5,759
Profit for the period - - - 215 215
Issue of shares 70 122 (68) 68 192
Equity based share
awards - - 38 - 38
Lapse of options - - (5) 5 -
At 29 February 2020 1,382 1,652 166 3,004 6,204
Unaudited Consolidated Cash Flow Statement
For the six months ended 29 February 2020
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
29 February 28 February 31 August
2020 2019 2019
GBP'000 GBP'000 GBP'000
Cash flows from operating
activities
Profit/(loss) before
taxation 215 (895) (693)
Adjustments for:
Depreciation and amortisation 151 137 192
Equity based share
payments 38 50 96
Taxation - - 8
Interest received (1) - -
Interest paid 4 - -
Changes in working
capital:
Trade and other receivables (604) (765) (44)
Trade and other payables 176 229 121
Accruals, deferred
income, receipts in
advance and refundable
deposits 1,569 1,392 1162
Provisions - 650 -
---------------- ---------------- ---------------------
Net cash generated
from/(used in) operating
activities 1,548 798 848
---------------- ---------------- ---------------------
Cash flow from financing
activities
Issue of shares 192 - 20
Interest paid (4) - -
Principal element of (22) - -
lease repayments
Net cash generated
from financing activities 166 - 20
---------------- ---------------- ---------------------
Cash flow from investing
activities
Interest received 1 1 2
Purchase of intangible
assets - (37) (88)
Purchase of fixed assets (54) (32) (46)
Net cash (used in)
investing activities (53) (68) (132)
---------------- ---------------- ---------------------
Net increase in cash
and cash equivalents 1,661 730 736
Cash and cash equivalents
brought forward 4,961 4,225 4,225
Cash and cash equivalents
carried forward 6,622 4,955 4,961
---------------- ---------------- ---------------------
Notes to the Interim Results
For the six months ended 29 February 2020
1. The interim results (approved by the Board of Directors and
authorised for issue on 12 May 2020 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 2019. The
audited accounts for the year ended 31 August 2019, 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 29
February 2020 have been prepared in accordance with the accounting
policies expected to apply in respect of the financial statements
for the year ending 31 August 2020.
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 periods
presented is as follows:
As at As at As at 31
29 February 28 February August
2020 2019 2019
No No. No.
Weighted average number
of ordinary shares in
issue 136,870,733 130,707,120 130,781,092
Weighted average diluted
number of ordinary shares
in issue 139,341,039 130,707,120 137,388,933
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. The Group applied IFRS 16 from 1 September 2019 and has
elected to transition to IFRS 16 using the modified retrospective
approach.
Initial application of IFRS 16 has affected leases which had
previously been classified as operating leases. At 31 August 2019,
the Group had no short term or low value operating leases which
were exempt from the requirements of IFRS 16. At 1 September 2019,
the group recognised right-of-use assets of GBP199,395 and
associated lease liabilities of GBP195,396.
The reconciliation between the amounts disclosed as operating
lease commitments at 31 August 2019 and the opening position at 1
September 2019 is as follows:
GBP
Total operating lease commitments at 31 August
2019 218,805
Discounted using incremental borrowing rate (23,409)
---------
Total finance lease obligation recognised at
1 September 2019 195,396
---------
10. Exceptional costs are broken down as follows:
Unaudited Unaudited Audited
6 months ended 6 months ended year ended
28 February 28 February 31 August 2019
2020 2019
(restated) (restated)
GBP'000 GBP'000
Termination and - 335 -
restructuring costs
Cost of terminating - 227 -
our London operations
Capital reorganisation - 9 -
& other legal costs
Acquisition costs - - 43
----------------------- ---------------- ----------------
TOTAL - 571 43
----------------------- ---------------- ----------------
11. 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
IR SFLFMFESSESI
(END) Dow Jones Newswires
May 12, 2020 02:00 ET (06:00 GMT)
Wey Education (LSE:WEY)
過去 株価チャート
から 9 2024 まで 10 2024
Wey Education (LSE:WEY)
過去 株価チャート
から 10 2023 まで 10 2024