Publishing and training specialist Wilmington's (WIL) reported figures were blighted by a non-cash impairment charge. But, on an underlying basis, the numbers suggest the company's efforts to reposition itself for the digital age have paid off. Adjusted pre-tax profit rose 11 per cent to £14.7m, with EPS up 12 per cent to 13.1p. Broker Numis said the results were a touch ahead of forecasts, so it has raised its 2014 EPS forecast by 4 per cent to 14.7p to reflect this and the contribution from the recent acquisition of Compliance Week.
Wilmington's transformation has been effected by a push to increase digital and international revenue, while letting print and advertising revenue shrink. Advertising now generates just 6 per cent of total sales, down from 9 per cent a year ago, while international revenues accounts for nearly a third of the total and digital revenue represents 79 per cent of content revenue. Another strand to the repositioning has been an attempt to build subscription and repeatable revenues, which now stand at 79 per cent of group turnover.
The exit from non-core businesses, with proceeds ploughed back into bolt-on acquisitions, has played a key role in the repositioning. Two deals were completed during the year, with a further acquisition - of US governance, risk and compliance information provider Compliance Week - completed post the year-end.
WILMINGTON (WIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 198p | MARKET VALUE: | £168m | |
| TOUCH: | 198p-199p | 12-MONTH HIGH: | 200p | LOW: 116p |
| DIVIDEND YIELD: | 3.5% | PE RATIO: | 47 | |
| NET ASSET VALUE: | 61p* | NET DEBT: | 65% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 86.3 | 2.90 | 0.46 | 7.00 |
| 2010 | 78.4 | 7.30 | 5.38 | 7.00 |
| 2011 | 83.8 | 6.08 | 5.20 | 7.00 |
| 2012 | 85.3 | 6.33 | 5.81 | 7.00 |
| 2013 | 85.0 | 5.12 | 4.17 | 7.00 |
| % change | -0 | -19 | -28 | - |
Ex-div: 9 Oct Payment: 7 Nov *Includes intangible assets of £104.8m, or 123p a share | ||||
