Wey Education swings to loss as expenses offset rising sales
Source - SMW
Educational services group Wey Education swung to a first-half loss as higher costs offset rising revenue.
Pre-tax losses for the year through August amounted to £229k, compared to a profit of £18k on-year.
Revenue rose 73% to £4.2m.
Much of the year had been spent on building the foundations for further growth and, in certain areas, spending was at higher than normal annual levels, the company said.
'The board has recently reviewed its plans and budgets for the coming year and while setting challenging targets which will see the group expand significantly, has decided to be very prudent in relation to the pace at which it assumes its overseas sales will grow,' Wey said.
'Average growth of group turnover in the last three years has been 66% per annum.'
'The board's ambition is to maintain that trend in the current year and beyond and any acceleration in overseas development should enhance this figure further.'
'It is expected that the emphasis placed upon core Interhigh recruitment and B2B will influence results throughout the year while other initiatives will be concentrated in the second half.'