Wey Education plc (LON:WEY) is an internationally focussed educational group. FY results for the 12 months to August 2016 demonstrate substantial progress with student numbers increasing 52% and revenue, at InterHigh, increasing 38% y-o-y. This yields reported revenues of £1.5m and an adjusted loss before tax of £0.2m, both in line with expectation. Year-end net cash was £0.9m.
Wey is now fully capitalised to leverage the growth opportunity it sees in both the UK and overseas markets. It is now seeking to accelerate investment plans in Asia, which has the effect of reducing our FY2017 estimates, adjusted PBT revised to £0.2m (EPS: 0.15p) from £0.6m, but the long-term growth potential of the business looks increasingly positive. In addition to expanding into Asia, as expected, the Group is launching a second school, which will be a premium brand, operating on a semi-selective basis aimed specifically at students seeking high academic results. Both of these initiatives should see revenue and profitability rapidly increasing into FY2018 where we look for an adjusted PBT of £0.8m, EPS of 0.78p.