Wey Education quietly confident about year ahead

Wey Education swung to an annual loss as improved revenues were offset by mounting investment in further growth.

Revenue surged 73% to £4.2m during the year to 31 August, with growth in the core business and just over £1m from the December acquisition of Academy 21.

Adjusted EBITDA was up 162% to £452,569, but the educational services outfit turned in pre-tax losses of £229,909 compared to the profit of £17,574 a year earlier. Adjusted earnings per share almost doubled to 0.33p.

Wey, which has integrated Academy 21 into the group after acquiring the online educational business for a price that could rise to £3.2m last December, spent much of the year paving the way for its further growth, leading to higher than initially expected outgoings in particular areas.

Executive chairman David Massie, said: "Wey had an excellent year in terms of turnover growth, technical implementation and the acquisition of Academy 21. With substantial cash resources of over £4m, we are well placed for further significant growth in the current year and beyond."

Cash balances were boosted by a £5m fundraising late last year.

"In setting our budget for this year the board has taken a prudent approach to the timing of overseas expansion and expects to hit its core targets primarily through organic growth," Massie added.

Initial trading in the new financial year has seen sales activity in the Interhigh and B2B divisions "materially ahead" of the equivalent position at this time last year.

Sales targets have set a course for significant expansion but the board has "decided to be very prudent in relation to the pace at which it assumes its overseas sales will grow", pencilling in a continuation of the 66% average growth turnover in the last three years. "The board's ambition is to maintain that trend in the current year and beyond, and any acceleration in overseas development should enhance this figure further."

As of 0840 BST, Wey shares had climbed 4.32% to 12.68p.