Morning!

A few updates which have caught my eye:

  • Wey Education (LON:WEY) - interim results. "...we remain on track to meet our expectations for adjusted profitability for the year although this is likely to be achieved on lower than previously planned revenues."
  • Cambria Automobiles (LON:CAMB) - interim results. "The Board remains confident that Cambria will maintain its momentum in the second half and deliver a financial performance in line with market expectations for the year as a whole."
  • IDE Group (LON:IDE) - final results for 2017. "Profitability in 2018 is expected to be significantly lower than 2017, but is expected to improve steadily throughout 2018 and beyond following implementation of the operational review."
  • Bloomsbury Publishing (LON:BMY) - Bloomsbury and Spotify announce audio storytelling partnership.

Thanks for your requests, specifically Treatt (LON:TET) and Tern (LON:TERN). I will cover them if I have time.



Wey Education (LON:WEY)

  • Share price: 20.5p (-25%)
  • No. of shares: 126 million
  • Market cap: £26 million

Interim Results

A strongly negative reaction to this interim report, despite the company reiterating that it would meet expectations for adjusted profitability for the full-year.

Wey is an educational provider which runs an online secondary school and provides teaching materials to schools. It made a UK acquisition last year ("Academy 21", or "A21") and is now planning to expand its international activities.

The bad news today can be summarised as: UK growth not as high as originally hoped, lots of costs anticipated from international activities, and an operating loss after all is said and done.

"Core" revenues (i.e. excluding the acquisition) are up 23% year-on-year. Not bad, but it is difficult to support a market cap of £30 million+ with trailing twelve month sales in the region of £3 million.

Investors are asked to be patient:

In accordance with the strategy adopted at the time of the Company's £5 million placing in November 2017, emphasis has been put on development of the Company's business for the medium term at some short-term cost.

There's nothing wrong with that, but I think that investors had already shown a…

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