Wey Education plc (AIM: WEY.L), the education group operating an established online independent secondary school in the UK, has given DirectorsTalk a trading update and the payment of the deferred consideration for InterHigh.
Trading update
The current financial year has started strongly with a significant rise in student numbers year on year and with a corresponding significant increase in turnover. Implementation of the new IT system which will facilitate considerable expansion of student numbers across multiple brands is proceeding satisfactorily and in accordance with the planned timetable. The Company anticipates announcing its interim results for the current year in April and looks forward to reporting on further progress both operationally and financially at that time.
AGM Results
The Company is pleased to confirm that shareholders approved all resolutions proposed at the Annual General Meeting of the Company held yesterday.
Deferred Consideration
The Company’s acquisition of InterHigh in 2015, included an entitlement to the vendor for deferred consideration over the years to 31 August 2015 and 2016 of an amount equal to 50 per cent. of the incremental growth in turnover of the InterHigh business for each of the years, to be satisfied as to 50 per cent. in cash and 50 per cent. in shares. InterHigh’s turnover for the year ended 31 August 2016 was GBP1,488,860 which exceeded the turnover for the year ended 31 August 2015 by GBP406,616. Accordingly, the Group is today paying GBP101,654 in cash and issued 2,640,364 new ordinary shares (“New Ordinary Shares”) at the average market price of 3.850p per New Ordinary Share to the vendor of InterHigh. The vendor is restricted from dealing in their entire holding including the New Ordinary Shares until around 13 January 2018 (being twelve months after the date the deferred consideration shares are issued for the year ended 31 August 2016). Mr and Mrs P Daniell (who control the vendor) and who are respectively the Principal of InterHigh and a director of the Company are now interested in a total of 13,065,157 Ordinary Shares representing approximately 13.28 per cent. of the Company’s issued share capital.
Application will be made for the 2,640,364 new Ordinary Shares to be admitted to trading on AIM, which is expected to take place on 13 January 2017. The New Ordinary Shares will rank pari passu with the existing Ordinary Shares in issue.
