Wey Education bounces 15% with turnover ‘significantly ahead of forecasts’

Wey Education bounces 15% with turnover ‘significantly ahead of forecasts’

Online educational services provider Wey Education (LON:WEY) updated its shareholders on its current trading position, which it described as strong.

It said both its InterHigh and Academy 21 offerings started the financial year with strong performance. It added InterHigh’s b2b sales had been ‘higher than anticipated’.

Wey Education continued, saying that its turnover for the year ended 31 August 2020 is expected to be ‘significantly ahead of market forecasts’, in excess of £7.5 million.

This turnover growth, if realised, would represent an increase of 25% on the year ended 31 August 2019.

The company said its Directors would continue to invest in marketing to enhance future growth and are actively investing in senior operational executives in marketing, education and Information Systems.

Wey Education response

Commenting on its outlook and strategy, the company’s statement continued,

“The board is taking advantage of the increased turnover to invest in these areas at a greater rate than initially planned to accelerate its growth plans.  Notwithstanding the additional cost of these investments the Company still expects to meet market forecasts for profit for the current year ending 31 August 2020.”

Responding to the positive overview, company Chairman Barrie Whipp, commented,

“The strategy established in 2019 to deliver excellent online education to an increasing number of students is clearly working. Our brands, InterHigh and Academy 21 are both growing at similar rates. It is entirely logical that, with our substantial cash reserves, we continue to seek further growth through investment in quality and marketing. The appointment of new senior executives is being covered by our enhanced revenues, as is the increase in marketing expenditure. This allows the Board to project further growth with optimism.”

Investor notes

Following the update, the company’s shares jumped 14.89% or 2.41p to 18.56p per share 25/02/20 13:01 GMT. The Group’s p/e ratio is high at 64.60, their market cap stands at £25.63 million.