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Wey Education set to beat market forecast

10:31, 25th February 2020
Francesca Morgan
Company News
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Online educational services group, Wey Education (AIM:WEY)FOLLOW, is expecting its annual turnover to be significantly ahead of market forecasts for the year to 31 August 2020.

Revenues for the period are anticipated to be in excess of £7.5m after broker WH Ireland increased its previous forecast of £6.775m.

The projected turnover represents a 25% increase from £6m revenues for the previous year ended 31 August 2019.

InterHigh and Academy 21, the two established divisions of the AIM-listed firm, started the financial year as stronger than expected with both businesses growing at similar rates.

Specifically, InterHigh, a non-selective fee paying online secondary school, delivered higher than expected business to business sales, the statement added.

"The strategy established in 2019 to deliver excellent online education to an increasing number of students is clearly working,” said Barrie Whipp, Chairman of Wey Education.

Shares in Wey Education were trading 14.86% higher at 18.55p during Tuesday trading.

WEY price chart

Meanwhile, Wey said it is ‘taking advantage’ of the increased turnover in order to invest in marketing at a greater rate than initially planned with the intention of accelerating its growth plans for its two core businesses.

As a result, the company anticipates profits to be in line with current market forecasts at £0.5m for the period.

“It is entirely logical that, with our substantial cash reserves, we continue to seek further growth through investment in quality and marketing,” added Whipp.

The company is also focusing on using its revenues to target new senior executive appointments which will enable the board “to project further growth with optimism.”

As outlined in its 2019 annual report, the board’s aim, in its short to medium term plan, is to combine its two core businesses to become the largest secondary school in the UK by number.

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