Training and publishing specialist
Increased regulation in the banking business is boosting demand for compliance training and revenue there rose 9 per cent to £8.7m, with divisional profits having jumped 25 per cent to £2.1m. Meanwhile, the pensions and insurance operation grew profits 17 per cent to £2.89m, helped by international demand. And while the healthcare business saw revenues fall 8 per cent to £6m as lower-margin work was cut, profits here rose 9 per cent to £1.3m. Disposals did push the legal side's revenues down 9 per cent to £9.5m, but profits here grew from £409,000 to £567,000.
Print revenues have now been reduced to just 2 per cent of the group total and Wilmington further improved its digital presence with this February's £5.6m purchase of NHiS, a data provider to the healthcare sector.
Broker Numis Securities expects full-year adjusted pre-tax profit of £14.3m, giving EPS of 12.8p (2012: £13.2m/11.5p).
|ORD PRICE:||160p||MARKET VALUE:||£136m|
|TOUCH:||157-162p||12-MONTH HIGH:||168p||LOW: 82p|
|DIVIDEND YIELD:||4.4%||PE RATIO:||15|
|NET ASSET VALUE:||64p*||NET DEBT:||62%|
|Half-year to 31 Dec||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 13 Mar
Payment: 11 Apr
*Includes intangible assets of £103m, or 122p per share
There's a decent yield and Wilmington's transformation now leaves the group looking well placed. But that good news has also helped push the shares up 95 per cent since mid-July and they now trade on a not so cheap 13 times forecast earnings - that leaves further near-term upside looking hard to spot. Hold.
Last IC view: Hold, 114p, 18 September 2012