TIDMWEY
RNS Number : 3687P
Wey Education PLC
31 August 2017
31 August 2017
WEY EDUCATION PLC
("Wey Education" or the "Company")
Trading Update
Wey Education plc (AIM: WEY), the educational services group
which owns and operates two leading online independent secondary
schools and an educational services division delivering lessons and
other tuition to third party educational providers, announces a
trading update for its year ending 31 August 2017.
Highlights
-- Turnover expected to be at least GBP2.4 million (2016: GBP1.5 million) up on the prior year
-- Maiden adjusted pre tax profit expected (2016: loss GBP795,000)
-- Pupil numbers ahead of last year
-- Business poised for further growth
-- Significant growth expected in B2B
-- Very attractive opportunities overseas being investigated
-- Issue of shares to Chairman in settlement of Director's fees
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No.596/2014 and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Trading Results
The results for the year will demonstrate significant growth in
turnover and a vastly improved trading result. Pleasingly the
significant increase in turnover reported in the Company's interim
results continued in the second half. Turnover for the year is
expected to have increased to at least GBP2.4 million, an increase
of 60% over last year (GBP1.5 million) reflecting continuing growth
in the core business and price increases.
The Company expects to report a pre-tax profit for the year
(2016: loss GBP795,000) adjusted for equity share payments.
Outlook
The Company enters its new financial year with its various
divisions well placed to accelerate growth. The recently completed
upgrade of the online learning platform has been designed to allow
significant, seamless growth over all business divisions and new,
additional products are being introduced.
Despite the investment made in IT, personnel and marketing, cash
balances remain healthy at around the same level as at 31 August
2016 of GBP909,000.
Within the schools, recruitment of pupils continues for the new
academic year. Overall pupil recruitment is on track with
management expectations. Pupils already enrolled to study at
InterHigh (www.interhigh.co.uk) are ahead of last year.
The new premium school brand Infinity Education
(www.infinityeducation.org.uk) expects to accept its first pupils
this September. It is considered this business will be judged by
potential customers on its superior academic performance over its
first few years of life (through the two year cycle of iGCSEs and A
level) and therefore at this stage academic excellence is more
important than student numbers. The Company has recently introduced
a scholarship program to attract students of the highest calibre.
The Company is therefore targeting only a small number of pupils
for the current year and only expects a modest contribution to
turnover.
Unlike many traditional "bricks and mortar" schools, Wey can
continue to recruit pupils throughout the academic year without
imposing a maximum number so expects pupil numbers and growth to
continue through 2017/18.
The recently established B2B division finished this year well
and it is expected that this division will grow significantly in
the coming year. A number of potential contracts are under
negotiation or have been tendered for.
Wey has recently launched Quoralexis (www.quoralexis.com), an
online language school specialising in English as a Foreign
Language ("EFL"). This will commence business in September and the
Company is encouraged by initial reactions to its product
offering.
The Company continues to explore overseas markets where it
believes that subject to regulatory compliance, very attractive
opportunities exist for its British education products.
Further updates regarding the Company's prospects will be given
in the Preliminary Announcement of the full year's results to 31
August 2017 which is expected to be released at the end of October
2017 but in summary the Company is planning for further significant
growth in the coming financial year.
As stated in the pre close interim trading update issued on 28
February 2017, David Massie, the Chairman of the Company, agreed to
have his annual salary of GBP33,000 for the year to 31 August 2017
satisfied by the issue of new ordinary shares in the Company, to be
credited as fully paid at 3.88p being 103.5% of the middle market
price which prevailed for the 5 days before the proposal by the
Company's Remuneration Committee on 17 February 2017. This resulted
in a total of 950,514 shares to be issued to Mr Massie with half
being issued on 28 February 2017 and the other half are to be
issued today.
As a result, the Company is today issuing 425,257 new ordinary
shares in satisfaction of the outstanding 50% of Mr Massie's
salary. Application will be made for the 425,257 new ordinary
shares to be admitted to trading on AIM, which is expected to take
place on 6 September 2017. The new ordinary shares will rank pari
passu with the existing ordinary shares in issue.
Taking into account the issue of the 425,257 new ordinary shares
the relevant share interest of Mr Massie in the Company will
therefore be 20,608,430 ordinary shares, representing approximately
19.82% of the Company's issued share capital.
In accordance with the provisions of the Disclosure Guidance and
Transparency Rules of the FCA, the Company confirms that, following
this issue, its issued share capital will comprise 103,968,491
ordinary shares of 1 pence each. All ordinary shares shall have
equal voting rights and none of the ordinary shares are held in
treasury. The total number of voting rights in the Company
immediately following Admission will therefore be 103,968,491.
The below notification made in accordance with the requirements
of the EU Market Abuse Regulation:
1 Details of the person discharging managerial responsibilities/person closely associated
--- --------------------------------------------------------------------------------------------------
a) Name David Massie
--- ------------------------------------------------------------ ------------------------------------
2 Reason for the notification
--- --------------------------------------------------------------------------------------------------
a) Position/status Director
--- ------------------------------------------------------------ ------------------------------------
b) Initial notification/ Amendment Initial Notification
--- ------------------------------------------------------------ ------------------------------------
3 Details of the issuer, emission allowance market participant, auction platform, auctioneer
or auction monitor
--- --------------------------------------------------------------------------------------------------
a) Name Wey Education plc
--- ------------------------------------------------------------ ------------------------------------
b) LEI N/A
--- ------------------------------------------------------------ ------------------------------------
4 Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii)
each type of transaction; (iii) each date; and (iv) each place where transactions have been
conducted
--- --------------------------------------------------------------------------------------------------
a) Description of the financial instrument, type of instrument Ordinary shares of 1p each
Identification code
GB00B54NKM12
--- ------------------------------------------------------------ ------------------------------------
b) Nature of the transaction Payment of directors fees in shares
--- ------------------------------------------------------------ ------------------------------------
c) Price(s) and volume(s) Price(s) Volume(s)
--------- ----------
3.88p 425,257
--------- ----------
--- ------------------------------------------------------------ ------------------------------------
d) Aggregated information
* Aggregated volume 425,257
GBP16,500
* Price
--- ------------------------------------------------------------ ------------------------------------
e) Date of the transaction 31 August 2017
--- ------------------------------------------------------------ ------------------------------------
f) Place of the transaction n/a
--- ------------------------------------------------------------ ------------------------------------
Enquiries:
Wey Education plc
+44 (0) 20 7518
David L Massie (Chairman) 9700
+44 (0) 7785 957
958
WH Ireland Limited
(Nominated Adviser and Broker)
Mike Coe / Ed Allsopp (Corporate +44 (0) 117 945
Finance) 3470
THE DIRECTORS OF THE COMPANY ACCEPT RESPONSIBILITY FOR THE
CONTENTS OF THIS ANNOUNCEMENT.
The company news service from the London Stock Exchange
END
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