TIDMWEY
RNS Number : 2790A
Wey Education PLC
27 December 2017
27 December 2017
WEY EDUCATION PLC
("Wey Education" or the "Company")
Acquisition of Academy 21 Limited
Investor Evening Event
Further to the announcement made on 15 November 2017, Wey (AIM:
WEY) announces that it has completed the acquisition of the entire
issued share capital of "Target" which is a UK based on-line
education business called Academy 21 Limited ("A21") for a cash
consideration of GBP1,593,376 which may rise to GBP1,600,000
million dependant on the collection of certain debtors.
The terms of the acquisition were varied since the
aforementioned announcement to provide for a slightly higher
payment upfront but with no earnout. The Vendors of A21 (Mr and Mrs
Sullivan) resigned as directors of A21 on completion of the
acquisition.
For the year ended 31 August 2017, A21 had unaudited turnover of
GBP1,030,032 and recorded a profit after tax of GBP137,654. It had
net assets of GBP389,877. The sale and purchase agreement for the
acquisition contains warranties and indemnities appropriate for
such a transaction.
A21 is an online educational business that provides a range of
Key Stage 3, GCSE and iGCSE programmes to pupils who have been
referred by local authorities and schools across the UK. Its
customers tend to engage A21's services for short periods of
approximately six weeks, which may be extended or repeated, in
contrast to typical students of Wey's principal school, InterHigh,
who tend to be at InterHigh for several years. As such, the A21
business complements Wey's existing business giving access to short
term tuition teaching which can extend the Wey customer base.
It is Wey's intention to integrate A21 and its own B2B sales
force in the near future and for the enlarged team to sell the
Group's combined product range. Students on A21's electronic
Learning Platform will be migrated to Wey's newly enhanced Learning
Platform as a commercial movement, probably after the end of the
current academic year.
The transaction is funded from part of the proceeds of Wey's
GBP5 million (gross) placing, which completed in November 2017.
The placing included provision for Wey to expand its sales and
marketing efforts, both in the UK, and internationally and the
Company is currently finalising its plan for this expenditure for
the balance of the current financial year. Such expenditure is
anticipated to provide a significant boost to student numbers and
revenue from the beginning of the financial year, 2018/19. Part of
the strategy is not only to maintain Wey's online advertising
presence through Google, Facebook, Twitter and other social media
outlets, but to increase brand awareness through more general
advertising on other mediums. An indication of such initiatives is
that InterHigh will be utilising electronic display advertising at
Waterloo station throughout January, including a concentrated
campaign on the large, major electronic screen above the platforms.
The Company has put in place procedures to measure the impact of
such advertising.
Proposed Investor Evening Event
As previously announced, on 10 January 2018 and following on
from the positive response to the private investor briefing evening
held in July 2017, Wey will host an investor briefing for existing
and potential investors at the Hilton London Paddington, 146 Praed
St, London W2 1EE, commencing at 5:30 p.m..
Numbers are limited and entrance is by invitation only. To
obtain an invitation, those wishing to attend should email
david.massie@wedu.co.uk giving:-
1. Their name and address; and
2. A contact email or telephone number
For statistical purposes, it would be helpful if those seeking
an invitation would advise in their application whether they are an
existing shareholder or not.
Enquiries:
Wey Education Plc +44 (0) 207 518 9700
David Massie (Executive Chairman) +44 (0) 778 595 7958
WH Ireland Limited
(Nominated Advisor and Broker) www.whirelandcb.com
Mike Coe/Ed Allsopp (Corporate +44 (0) 117 945 3470
Finance) +44 (0) 207 220 1666
Jasper Berry/Adam Pollock (Corporate
Broking)
Note to Editors
Wey is traded on AIM (AIM: WEY) and is the parent company of an
educational services group (see www.weyeducation.com).
Wey's live, interactive, 'virtual classroom' approach allows
students anywhere in the world with an internet or 4G connection to
access a high quality, uniquely tailored education. Our
subsidiaries are:
InterHigh, www.interhigh.co.uk, was established in 2005 and was
a pioneer in online education. It has an excellent track record and
provides live, interactive teaching of the British curriculum for
years 7 - 13 teaching both iGCSE, A levels and some vocational
courses, particularly in computer gaming. Our teaching is
interactive and not a video download. Pupils attend what might be
considered a conventional class, just that it is in a virtual
classroom.
The Wey ecademy, www.weyecademy.com, was established in 2016/17
to provide services and tuition to and for other education
providers and schools across a broad range of subjects and
curricula. This can be teaching of individual subjects or a wider
range of subjects including iGCSE and A levels or specialist
vocational courses.
Infinity Education, www.infinityeducation.org.uk, is targeted
towards overseas markets. Pupils will be those aiming to achieve
top grades at both iGCSE and A Level and to move on to study at
leading universities in the UK and overseas.
Quoralexis, www.quoralexis.com, is an online, live, interactive
language school that will welcome students from all parts of the
world to learn English as a Foreign Language. Quoralexis offers an
extensive range of courses in English as a Foreign Language
("EFL"), for individuals and the corporate sector, across all age
groups and all language ability levels.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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