Regulatory crackdowns and stricter compliance requirements have forced banks and insurers to seek instruction from professional information and training group Wilmington (WIL). The upshot was a 14 per cent increase in adjusted pre-tax profits, which sent the shares up 4 per cent.
Chief executive Pedro Ros marked his maiden set of results by spending nearly £50,000 on Wilmington's shares. Not that investors needed the morale boost: profits rose across the board, climbing 10 per cent in the finance division as bankers and accountants flocked to its training programmes. The division continues to focus on specialist markets; management says going toe-to-toe with industry giants Bloomberg and Thomson Reuters would leave it with "a bloody nose".
Wilmington posted similar gains at its larger risk and compliance division, including a 37 per cent surge in compliance revenues as several global banks lined up for training. Growth there was somewhat offset by a 6 per cent slump in sales at the group's fledgling legal division, which continued to suffer due to relaxed training requirements for solicitors.
The group is betting on overseas markets to drive further growth. International revenues now account for 38 per cent of sales - up from about 29 per cent two years ago - and further expansion is "the name of the game", according to Mr Ros.
Broker Numis forecasts full-year pre-tax profit of £18m for 2015, giving EPS of 16p, up from £16.6m and 14.8p in 2014.
| WILMINGTON (WIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 225p | MARKET VALUE: | £195m | |
| TOUCH: | 220-227p | 12-MONTH HIGH: | 254p | LOW: 185p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 29 | |
| NET ASSET VALUE: | 61p* | NET DEBT: | 65% | |
| 2013 | 43.1 | 3.7 | 3.1 | 3.6 |
|---|---|---|---|---|
| 2014 | 46.1 | 3.7 | 3.2 | 3.7 |
| % change | +7 | +1 | +4 | +3 |
Ex-div: 12 Mar Payment: 02 Apr *Includes intangible assets of £104m, or 120p a share | ||||
