Wey Education Plc (LON:WEY) Chairman David Massie talks to DirectorsTalk about its latest trading update. David talks us through the highlights, explains the B2B aspect, the launch of Quarolexis, its marketing and how this sits in the company. David also talks about ambitions for the coming year and what investors should be looking out for in terms of newsflow.
Wey Education Plc 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 £909,000.
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.