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Wey Education PLC (WEY)

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Tuesday 10 November, 2020

Wey Education PLC

Final Results

RNS Number : 7224E
Wey Education PLC
10 November 2020
 

 

WEY EDUCATION PLC

("Wey", the "Group" or the "Company")

 

PRELIMINARY ANNOUNCEMENT OF RESULTS

FOR THE YEAR ENDED 31 AUGUST 2020

 

 

FINANCIAL HIGHLIGHTS:

· Turnover increased by 38% to £8.4m ( 2019 : £ 6.0m)

· Statutory profit before tax of £500k (2019: loss before tax of £693k)

· Adjusted PBT from continuing operations more than doubled to £652k (2019: £322k)

· Adjusted operating profit of £498k (2019: £53k)

· Statutory EPS 0.63p (2019: LPS 0.52p) Adjusted EPS 0.47p (2019: 0.25p)

· Cash balances at year end of £6.5m (2019: £5.0m)

 

OPERATIONAL HIGHLIGHTS:

· Significant growth in student enrolment across all year groups

· Leadership expanded to enhance quality student engagement and growth

· Increased focus   on leadership and strategy in marketing centering on growth of the customer base through recruitment, retention and referral

· Embedded remote working for all staff

· New technology leadership and programmes implemented to deliver improved operational efficiency and learner experience

 

Commenting on the results, Barrie Whipp (Chairman) said:

 

"Wey is now firmly established as a leader in online education. The Directors believe that Wey provides a unique, synchronous experience for our ever-increasing number of learners. Our expanded leadership team is allowing us to enhance the quality of our education provision, technology and individual learner experience. Our marketing focus is allowing us to expand our reach in a marketplace more ready for our services than ever before. We are very pleased with the Company's performance and determined to continue to press our opportunities further."

 

Investor Presentation

 

Wey Education plc will provide a live presentation to retail investors reporting on the Group's preliminary results via the Investor Meet Company ("IMC") platform on 11 November 2020 at 4pm.

 

· The online presentation is open to all existing and potential shareholders.

 

· Questions can be submitted pre-event via your IMC dashboard up to 9am the day before the meeting or any time during the live presentation via the "Ask a Question" function. Although the Company may not be in a position to answer every question it receives, it will address the most prominent within the confines of information already disclosed to the market. Responses to the Q&A from the live presentation will be published at the earliest opportunity on the Investor Meet Company platform.  

 

· Investor feedback can also be submitted directly to management post-event to ensure the Company can understand the views of all elements of its shareholder base.

 

 

Investors can sign up to Investor Meet Company for free and add to meet Wey Education plc via:

 

https://www.investormeetcompany.com/wey-education-plc/register-investor  

 

Investors who have already registered and added to meet the Company, will be automatically invited to the meeting.

 

 

Enquiries:


Wey Education Plc 


Barrie Whipp (Chairman) 

+44 (0) 7778 367 999

Barry Nichols-Grey (Executive Director - Finance) 

+44 (0) 1873 813 900 

 

WH Ireland Limited

(Nominated Advisor and Broker)


J ames Joyce (Corporate Finance)

+44 (0) 20 7220 1666 



 

 

Chairman's Statement

 

The review of the financial year ending on the 31st August 2020 gives us the first opportunity to present the results of the new strategy which commenced in November 2019, whereby we focused the activities of Wey Education through InterHigh and Academy 21. I am pleased to report that we have achieved all of the short to medium term goals that we set at that time and that the business is performing well against all of our internal metrics.

 

The growth of our student base is very pleasing, and it is becoming increasingly clear that we represent a true alternative to a traditional education in a bricks and mortar environment. At the time of writing over 3,000 students receive an education from Wey and the quality and breadth of education they receive is no less impressive than the high number of students enrolled.

 

As part of our strategic review, we wanted to continue to refine and show ambition in our education provision. We have restructured our senior education team into a flexible, collegiate structure to suit our modern, progressive ethos. Under the leadership of our Director of Education, Dr Sara de Freitas, we have seen early benefits of this new strategy including improvements in the quality of materials, transparency of reporting and a highly motivated new team.

 

Our educational delivery and engagement goals include the desire to incorporate relevant augmented reality, artificial intelligence and gamification as part of our provision and Sara has significant experience in these fields. We continue to be an attractive destination for teachers and have been able to support our teaching staff with our accredited teaching online qualification which is being undertaken and passed by an increasing number of our team. We are experiencing no difficulties in the recruitment of high-quality teaching staff to accommodate new learners.

 

This calendar year has also seen us recruit a new Director of Marketing, Esther Clark, who is implementing strategies to not only increase the awareness of our services but also to directly market to parents and educational institutions. Whilst it is early days, we are pleased to note that our marketing expenditure is seeing tangible results, particularly from awareness and radio campaigns. We are increasing our investment in Wey ambassadors and believe that the recruitment of these well-known individuals, in a very modern marketing mix, will lead to improvements in brand association and awareness. We are confident these new marketing initiatives will continue to attract new students to our ever-increasing cohort. Our strategy going forward is to continue to increase marketing expenditure in a targeted way, benefitting from the knowledge we are gaining from more market analysis and feedback. Our enhanced education structure gives us more opportunities in terms of gearing our education provision towards an ever-increasing number of students.

 

In Academy 21 we have continued to grow our sales staff and in the light of recent events continue to demonstrate that Wey is a real alternative for local authorities, schools and other institutions. We have no doubt that further opportunities are available to us in the business to business market where we sell directly to commercial organisations and school groups and I believe that the opportunity here has only been limited so far by our desire to focus on the delivery of our initial strategic goals. We are also increasing our investments in Information Technology, with further enhancement and solidification of the Wey platform. Our ability to use third party platforms ensures scalability and quality of delivery and we are also improving our operational systems.

 

Financially, this was a year for Wey to demonstrate that it could show a very clear relationship between student numbers, gross margin and profitability and I am very pleased that we have recorded a profit for the year which is not compromised by external investments and restructuring costs as it was in previous periods. I believe that these results also show the ability for Wey to gear its investments in marketing further to achieve increasing levels of profitability in future. Of course, we are also focused on ensuring that we continue to attract students through the quality and desirability of our education provision. Our cash position is very strong and gives us a firm basis for future investment considerations in new materials and technology.

 

Having achieved our short to medium term goals in a timely fashion, we are now focused on the next steps towards Wey becoming the size of a Multi Academy Trust in terms of student numbers. Clearly, there are a multitude of opportunities and online education is now in the broader conversation across the media and elsewhere. I am determined that we retain our focus but remain ambitious as to the markets that we can address.

 

Dame Erica Pienaar has recently stepped down as a Non-Executive director of Wey and I would like to take this opportunity of thanking her for her steadfast support and being instrumental in defining Wey's attitude towards the quality and safety of its education provision. Erica has been elected Chancellor Emeritus of InterHigh in perpetuity and continues to head our Academic Council. We are currently interviewing for a replacement Non-Executive Director.

 

Finally, I must thank Jacqueline Daniell, the Board and our staff for their hard work and dedication. Everyone at Wey is committed to providing a high-quality individual learning experience for our students. The success of this financial year and our solid basis for the future is a result of their commitment.

 

 

Barrie RJ Whipp

Chairman

10 November 2020

 

 

Operational Review

 

I am pleased to be able to report on a year where Wey Education set and met its clear objectives of accelerated growth, with measurable results. High level goals and initiatives have been linked to operations so that every part of the business has understood what was to be accomplished and delivered their targets. We have continued to build alignment across departments with a detailed plan that rallies everyone around KPIs, milestones, and deliverables for young learners.

 

At the start of the academic year, new pupil enrolment numbers benefitted from the summer radio campaigns with the more recently established junior school performing well. Student numbers generally rose through the autumn period and throughout the new year. From the beginning of the UK lockdown, student numbers enrolled in Alternative Provision started to decline as Local Authorities and state school customers sought to look at utilising the provision they were now having to provide themselves while their schools were closed. However, the total student numbers across the operating businesses continued to climb throughout the year.

 

 

For clarity I describe our operating businesses as follows:

 

InterHigh (www.interhigh.co.uk), InterHigh founded in 2005, has a 15-year track-record of delivering online schooling for both UK based and international fee-paying pupils. Interhigh caters for pupils from age 8 to 25 years old, offering a wide range of academic and enrichment courses, IGCSE, AS and A-Level subjects as well as vocational qualifications. It is a complete school with full academic, health and wellbeing and social programmes ensuring that all students who join the school study successfully for their future career choices. InterHigh is also available for partner schools and academies, both UK and international, to deliver supplementary academic programmes.

 

 

Academy 21 (www.academy21.co.uk) Academy21 was founded in 2011 and is a specialist in providing Alternative Provision online. It delivers services designed to help schools, local authorities and other public bodies such as children's homes meet the challenge of delivering short, medium- and long-term provision for pupils with complex behavioural, medical and mental health issues. It provides a balance of academic challenge and educational engagement through quality teaching and learning with flexible study programmes - responding directly to the challenges schools and local authorities face in securing high quality, cost effective alternative education provision.

 

Education and Learning

As part of Wey's wider business strategy adopted in November 2019, Dr Sara de Freitas was appointed in January 2020 to provide Leadership of the Education Strategy to enhance quality, improve student engagement and scale for growth. This year has seen the reshaping of the Education Department, introducing a more collegiate structure to lead the main programmes of the education strategy - quality, curriculum and the learner experience, as well as leading on outcomes. In addition, Sara has strengthened the safeguarding processes and procedures and re-aligned the Academic Council. Sara also defined our internal investment in a Learning Design Team for the Learning Development Programme, attracted external funding from InnovateUK to develop virtual labs, trips and campus and started to implement the Wey Education Model of Learn-Explore-Apply-Reflect. This is designed to make use of different teaching modes that correspond with the different learning modes pupils assume during the process of learning.

 

The education strategy also includes a number of associated plans including the Professional Development Plan, a training programme for Newly Qualified Teachers, and improvements to the Teaching Online ATHE accredited course. Other initiatives include the Quality Enhancement Plan with an academic focus on attaining Online accreditation, implementing the Quality Framework, School Improvement Plans, revamping the Assessment and Examinations facility, enhanced Education Delivery and a revision of Alternative Provision, Primary and College Plans.

 

In summary, our education provision has been restructured to ensure the best individual learning experience across the Wey group for an increasing number of students.

 

Marketing

In March 2020 Esther Clark took up her duties as Director of Marketing to continue the marketing activities and growth of InterHigh and Academy21 in both the UK and international markets. Wey Education uses a marketing mix as well as traditional and digital channels to not only increase awareness of its offering but also to guide prospective families and clients from consideration to decision stages.

 

From May 2020, a marketing strategy for accelerated growth was developed that centres on the customer and growth of the customer base through the recruitment of students and business partners; the retention of students and clients; the referrals from increased awareness activity as well as media and public relations. Brand positioning, business to business and business to consumer marketing plans have been completed and actioned in 2020. A comprehensive Ambassador programme has been developed to accelerate brand awareness and growth.

 

Wey has achieved notable success in sharing student stories, testimonials and thought leadership in the form of news articles, blogs and industry publications. Sharing what Wey does and the benefits of online learning are essential to Wey's accelerated growth as online learning moves towards mainstream customers. InterHigh was recognised as "Educational Establishment of the Year" at the annual Education Resources Awards.

 

Staffing

Highly effective resourcing has been a key business initiative to enable the business to deliver both the growth and quality elements of the Wey strategy. There have been Executive appointments to the Board as described as well as the appointment of Keith Geraghty as Chief Technology Officer (CTO).  The CTO is positioned to develop and deliver the technology strategy outlined below. The executive team is well set, performing well and positioned to further build on our global international strategy.

 

There has been further organisational realignment to enable the business to scale and grow in line with the business objectives of increased student enrolments.  The overall headcount is now over 200 employees. A significant tranche of 42 teachers have joined for the new academic year ahead and recruitment to fulfil student demand and ensure a high-quality student experience as well as excellent educational outcomes is ongoing.

 

Wey had already launched its remote working policies before national lockdown and has been well placed to respond to the global pandemic from a highly engaged and motivated employee base. Our teaching staff have always worked remotely, meaning that we were able to continue our education provision with no disruption to our learners.

 

Technology

Current Wey technology architecture successfully delivers the needs of today's business. Wey has been preparing to scale to next level growth. Programmes to deliver exceptional service, deliver improved operational efficiency and to strategically assist learning delivery to remain at the forefront of education presents an opportunity for Wey to now invest in a step change in cutting edge technology architecture. With the appointment of a Chief Technical Officer, the division have been planning the new technology strategy and investment into the target Wey technology architecture has commenced with new platforms planned for delivery in 2021 and beyond.

 

Summary

The 2019- 2020 year has seen the greatest internal rate of change since our formation. Wey has implemented unprecedented marketing investments and activity and experienced increased level of interest, scrutiny and enrolments as a result. Simultaneously we have transformed our structures, content, processes and procedures to meet the actual and anticipated changing profile of our customers now and going forward to meet our ambitious vision.

 

 

 

Jacqueline K Daniell

CEO

10 November 2020

 

 

Financial Highlights

 

I am pleased to report on another excellent year where we have delivered sustained growth in the business, delivered on our strategic aims and continued investment in the future growth of the business.

 

Group revenues of £8.4m for the year ended 31 August 2020 represents year on year growth of 38%. Revenues in the second half of the year overall were positively impacted by Covid, representing 54% of overall revenues for the year. Profit margins have been maintained at over 60% even in light of investment in the education team to drive the next phase of growth in the business as well as the enhancement of the quality of education delivery.

 

As the awareness of online schooling has increased, we have increased our marketing expenditure to capitalise on the current market opportunity.  We have also bolstered our Executive team with two appointments in the year. This has led to administrative expenses increasing from £3.4m to £4.5m year on year. A proportion of that spend which primarily occurred in the final quarter of the financial year is clearly intended to deliver increased revenue and profits for 2021 and beyond.

 

Overall, we have delivered a profit before tax of £500k for the year ended 31 August 2020, versus a loss before tax of £693k in the year ended 31 August 2019. The prior year was heavily impacted by restructuring and other one-off costs. A further comparative is the operating profit of £498k in the current year, versus £53k in the prior year as outlined below. On an adjusted basis, PBT has more than doubled, to £652k.

 

To reconcile profit before tax to adjusted profit, profit before tax from continuing operations adjusted for exceptional items, amortization of acquired intangibles and share based payments as detailed below.

 

 

Year ended 31 August

2020

£

 

Year ended 31 August

2019

£

Profit/(Loss) before tax from continuing operations

500,385

 

(380,691)

Add back:

 

 

 

Interest income

(1,906)

 

(2,063)

Exceptional costs (Note 3)

-

 

435,755

Adjusted Operating profit/(loss)

498,479

 

53,001

Amortisation of acquired intangibles

78,748

 

160,000

Equity based share awards

74,513

 

109,060

Adjusted PBT from continuing operations

651,740

 

322,061

 

 

 

 

Adjusted EPS (p)

0.47

 

0.25

Adjusted Diluted EPS (p)

0.46

 

0.23

 

 

Receivables

Overall receivables have increased from £735k to £975k largely as a result of amounts held as retentions by our card processing merchants - this is a timing issue and is linked to the volume of transactions.

 

Trade receivables net of provision stand at £505k, a marginal increase from the prior year balance of £498k but overall represents a reduction in debtor days from 30 to 22.

 

 

Liabilities

Current liabilities have increased to £3.2m from £2.1m. The majority of this increase is due to an increase in the deposits held against student accounts (up £652k) and amounts billed or received in advance of the current financial year (up £382k). This demonstrates the healthy position in which the group commences the 2020/21 financial year.

 

Cash

The group maintained a very strong cash position with £6.5m (2019: £5.0m) of cash balances held at the year end.

 

Other than the lease liabilities outlined below, the group has no debt.

 

Changes to accounting standards

The group has adopted IFRS16: Leases from 1 September 2019 on a modified retrospective approach. Therefore, it has not restated comparative period balances.

 

I FRS 16 introduces new or amended requirements with respect to lease accounting. It introduces significant changes to lessee accounting by removing the distinction between operating and finance leases and requiring the recognition of a right-of-use asset and a lease liability at commencement for all leases, except for short-term leases and leases of low value assets.

 

At year-end the Group had right-of-use assets of £158k with matching lease liabilities of £160k.

 

The interest expense in the financial statements of £8k relates wholly to the group's lease liabilities.

 

Taxation

The group's profitability and expectation of future profitability has led to the recognition of deferred tax assets of £370k. These tax assets will be available to offset against expected future profits in FY21 and beyond.

 

 

 

Barry Nichols-Grey

Finance Director

10 November 2020

 

 

Outlook and Summary

 

The outlook for Wey Education is unequivocally optimistic. The impact of our previous consolidation and focus, followed by a robust strategy for accelerated growth has meant that the pandemic growth and subsequent changes in behaviour have presented yet further opportunities. The biggest opportunity of our lifetime is to fundamentally reshape the way we think about, develop, and value education systems around the world. Wey Education has the diligence, business plans and sustainability of the sector to deliver an increased breadth of offering beyond its UK time zone and secondary education.

 

The key factor determining investment decisions is Wey's clear angle of differentiation and skill set in comparison to emerging providers. We are well placed to capitalise on structural shifts with improving lifetime value to invest ahead of competition.

 

Wey is going forward into the 2020/21 academic year with mastery, autonomy and a great sense of purpose.

 

 

 

WEY EDUCATION PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 AUGUST 2020






 

 


Year

ended

31 August

2020

 

£


Year ended

31 August 2019

 

£

Revenue



8,364,052


6,049,370

Cost of Sales



(3,322,175)


(2,447,538 )

Gross profit



5,041,877


3,601,832







Other income



2,360


5,668







Expenses






Administrative expenses



(4,462,831)


(3,445,439)

Equity based share awards



(74,513)


(109,060)







Operating profit/(loss)



506,893


53,001







Finance costs



(8,414)


-

Finance income



1,906


2,063

Exceptional costs

3


-


(435,755)







Profit/(Loss) before income tax benefit from continuing operations



500,385


(380,691)







Income tax benefit



367,712


7,804







Profit/(Loss) after income tax from continuing operations



868,097


(372,887)

 







Loss after income tax expense from discontinued operations

4


-


(312,530)







Profit/(Loss) after income tax benefit for the year attributable to the owners of Wey Education plc



868,097


(685,417)







Earnings per share from continuing operations






Basic earnings per share

7


0.63


(0.29)

Diluted earnings per share

7


0.62

 


(0.29)







Earnings per share from discontinued operations






Basic earnings per share

7


-


(0.24)

Diluted earnings per share

7


-


(0.24)







Total earnings per share






Basic earnings per share

7


0.63


(0.52)

Diluted earnings per share

7


0.62


(0.52)

 

There is no recognised income or expense for the year other that the loss shown above and therefore no separate statement of other comprehensive income has been presented.

 

 

 

WEY EDUCATION PLC

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 31 AUGUST 2020








At

31 August

2020

 

£


At

31 August 2019

 

£

Assets












Current assets






Trade and other receivables



975,098


735,334

Cash and cash equivalents



6,508,973


4,961,373

Total current assets



7,484,071


5,696,707







Non-current assets






Goodwill



1,630,939


1,630,939

Intangibles



410,901


449,628

Property, Plant and Equipment



195,579


170,990

Right-of-use assets

5


157,685


-

Deferred tax



369,909


-

Total non-current assets



2,765,013


2,251,557







Total assets



10,249,084


7,948,264







Liabilities












Current liabilities






Trade and other payables



587,164


323,904

Lease liabilities



39,959


-

Other



2,595,714


1,865,067

Total current liabilities



3,222,837


2,188,971







Non-current liabilities






Lease liabilities

5


119,892


-

Deferred tax



18,777


-

Total non-current liabilities



138,669


-







Total liabilities



3,361,506


2,188,971







Net assets



6,887,578


5,759,293







Equity






Issued capital



1,384,787


1,312,072

Reserves

6


1,837,816


1,730,692

Retained profits

6


3,664,975


2,716,529

Total equity



6,887,578


5,759,293

 

 

WEY EDUCATION PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

AT 31 AUGUST 2020

 


Issued

Capital

£


Share Premium

£


Option reserve

£


Retained profits

£


Total equity

£





















Balance at 1 September 2018

1,307,072


7,515,023


110,323


(2,604,454)


6,327,964











Total comprehensive loss after income tax for the year

-


-


-


(685,417)


(685,417)











Exercise of share options and warrants

5,000


15,000


(6,400)


6,400


20,000

Equity based share awards

-


-


96,746


-


96,746

Capital reorganisation

-


(6,000,000)


-


6,000,000


-











Balance at 31 August 2019

1,312,072


1,530,023


200,669


2,716,529


5,759,293











Balance at 1 September 2019

1,312,072


1,530,023


200,669


2,716,529


5,759,293

Total comprehensive profit after income tax for the year

-


-


-


868,097


868,097











Exercise of share options and warrants

72,715


129,539


(74,013)


74,013


202,254

Equity based share awards

-


-


74,513


-


74,513

Lapse of share options





(6,336)


6,336


-

Tax relating to share option scheme

-


-


(16,579)


-


(16,579)











Balance at 31 August 2020

1,384,787


1,659,562


178,254


3,664,975


6,887,578

 

WEY EDUCATION PLC

CONSOLIDATED STATEMENT OF CASHFLOWS

AT 31 AUGUST 2020








Year

ended

31 August

2020

£


Year

ended

31 August 2019

£

Cash flows from operating activities






Profit/(loss) before income tax benefit for the year



500,385


(693,221)







Adjustments for:






Depreciation and amortisation



239,069


192,173

Impairment



-


8,468

Share-based payments



74,513


96,746

Interest received



(1,906)


(2,063)




812,061


(397,897)







Change in operating assets and liabilities:






Increase in trade and other receivables



(239,764)


(108,585)

Decrease in other operating assets



-


64,190

Increase in trade and other payables



263,260


120,651

Increase in other operating liabilities



730,647


1,161,910




1,566,204


840,269

Income taxes refunded



-


7,804

Net cash from operating activities



1,566,204


848,073







Cash flows from investing activities






Payments for property, plant and equipment



(104,751)


(46,324)

Payments for intangibles



(78,800)


(87,621)

Interest received



1,906


2,063 

Proceeds from disposal of property, plant and equipment



331



Net cash used in investing activities



(181,314)


(131,882)













Cash flows from financing activities






Proceeds from issue of shares



202,254


20,000

Interest paid on lease liabilities



(8,414)


-

Repayment of lease liabilities



(31,130)


-

Net cash from financing activities



162,710


20,000







Net increase in cash and cash equivalents



1,547,600


736,191

Cash and cash equivalents at the beginning of the financial year



4,961,373


4,225,182

Cash and cash equivalents at the end of the financial year



6,508,973


4,961,373

 

 

WEY EDUCATION PLC

NOTES TO THE RESULTS

FOR THE YEAR ENDED 31 AUGUST 2020

 

 

1. The financial information set out above does not constitute statutory accounts for the purposes of the Companies Act 2006.  These financial statements have not been reviewed or approved by the Group's auditors.

 

2. Wey Education Plc has adopted International Financial Reporting Standards ("IFRS"), IFRIC interpretations and the Companies Act 2006 as applicable to companies reporting under IFRS.

 

 

3. Exceptional costs

 

The group incurred exceptional costs in the prior year in respect of:

 


Year ended

31 August

2020

 

£


Year ended

31 August

2019

 

£

Termination and restructuring costs

-


252,341

Onerous lease costs

-


174,627

Legal costs

-


8,787


-


435,755

 

 

4. Discontinued Operations

 

During the prior year, the Group took the decision to cease operations in its overseas entities. Therefore, the results of the following entities were reclassified as discontinued operations in accordance with IFRS5:

Wey Education Nigeria Limited;
Wey Education Limited; and
Wey Education Consulting (Beijing) Limited

In addition, various expenses incurred by the parent entity in relation to the discontinued operations were classified within discontinued operations.

 

5. Changes to accounting policy

 

The Group applied IFRS 16 from 1 September 2019 and elected to transition to IFRS 16 using the modified retrospective approach and has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard.

 

Initial application of IFRS 16 affected leases which had previously been classified as operating leases  . At the year end, the Group has no short term or low value operating leases which would be exempt from the requirements of IFRS 16.

 

On adoption of IFRS 16, the group recognised lease liabilities in relation to leases which had previously been classified as 'operating leases' under the principles of IAS 17 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted at a market rate for a loan of a similar amount and term as of 1 September 2019.

 

6. Capital reorganisation

 

On 24 September 2018 at a General Meeting, to allow the Company to create distributable reserves, shareholders approved a resolution to effect a capital reduction, transferring £6,000,000 from share premium to retained earnings. The transfer became effective on 21 December 2018 following Court approval.

 

7. Weighted average number of shares

 

The calculation of the basic earnings per share is based on the profit attributable to ordinary shareholders and the weighted average number of ordinary shares in issue during the period.

 

The calculation of the diluted earnings per share is based on the profit per share attributable to ordinary shareholders and the weighted average number of ordinary shares that would be in issue, assuming conversion of all dilutive potential ordinary shares into ordinary shares using the treasury share method.  

 

Reconciliations of weighted average number of ordinary shares used in the calculation are set out below:

 


Year

ended

31 August

2020

£


Year

ended

31 August

2019

£

Weighted average number of ordinary shares




Shares in issue at beginning of period

131,207,120


130,707,120

Impact of share issues in period

6,794,369


73,972

Weighted average number of ordinary shares for Basic EPS

138,001,489


130,781,092

Effect of share options outstanding

2,731,761


6,607,840

Weighted average number of ordinary shares for Diluted EPS

140,733,250


137,388,932

 

 

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