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Wey Education loss widens as costs outweigh revenue growth
11th Nov 2019 10:26
(Sharecast News) - Wey Education on Monday reported a widened loss before tax due to higher costs, though revenue climbed as more students began to use the company's online services.
Wey booked a loss before tax of £0.7m for the 12 months ended 31 August, compared with a loss of £0.3m the year before, as the company was hit by exceptional costs of £0.4m due to restructuring and the closure of its London Learning Centre.
Elsewhere, administrative expenses jumped by 53% to £3.4m as the AIM-listed company accelerated its marketing activities to secure new business for the next year, while cost of sales increased by 26% to £2.4m.
Revenue rose by 44% to £6.0m as the Academy 21 online education business beat targets and the company said it enjoyed "significant growth" in student enrolment.
Gross profit margins improved from 53.4% to 59.5% due to an increase in turnover contribution from Academy 21, as well as changes to Wey's teaching model.
Chairman Barrie Whipp said: "These results represent a pleasing outcome in a year where Wey underwent significant change. We have increased turnover, delivered profitability at the operational level and hold significant cash resources allowing us to continue our growth journey. The board plans to not simply consolidate but accelerate growth in our core businesses."
Wey Education shares were up 6.93% at 10.80p at 0953 GMT.
Wey booked a loss before tax of £0.7m for the 12 months ended 31 August, compared with a loss of £0.3m the year before, as the company was hit by exceptional costs of £0.4m due to restructuring and the closure of its London Learning Centre.
Elsewhere, administrative expenses jumped by 53% to £3.4m as the AIM-listed company accelerated its marketing activities to secure new business for the next year, while cost of sales increased by 26% to £2.4m.
Revenue rose by 44% to £6.0m as the Academy 21 online education business beat targets and the company said it enjoyed "significant growth" in student enrolment.
Gross profit margins improved from 53.4% to 59.5% due to an increase in turnover contribution from Academy 21, as well as changes to Wey's teaching model.
Chairman Barrie Whipp said: "These results represent a pleasing outcome in a year where Wey underwent significant change. We have increased turnover, delivered profitability at the operational level and hold significant cash resources allowing us to continue our growth journey. The board plans to not simply consolidate but accelerate growth in our core businesses."
Wey Education shares were up 6.93% at 10.80p at 0953 GMT.