Bankers, accountants and healthcare specialists are turning to Wilmington (WIL) to navigate the web of rules and regulations in their industries. Strong demand for information, training and networking drove the group's adjusted operating profits up 7 per cent to £9.7m in the reported period.
Rising interest in compliance and online training across several sectors drove constant-currency sales up 5 per cent in the key risk and compliance business. Major banks also paid up to train recent graduates, sending underlying revenues up 8 per cent in the finance division. But gains there were marred by declines in the legal and customer insight segments. Uncertainty over continued education requirements for lawyers and fierce competition for pharmaceutical customers in Europe were partly to blame.
Wilmington made two acquisitions in the period. It bought Wellards - which provides online education to healthcare professionals - and Financial Research Associates, which organises specialist finance and healthcare events. The latter deal contributed to the group's international progress: it now earns 42 per cent of revenues outside of the UK, up from 38 per cent a year ago.
Management expects further gains in 2016, underpinned by a 6 per cent rise in deferred revenues to £21m and scope for investment and further acquisitions. Broker Numis expects EPS of 18.4p in the year to June 2016 (FY2015:16.4p).
| WILMINGTON (WIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 255p | MARKET VALUE: | £222m | |
| TOUCH: | 255-260p | 12-MONTH HIGH: | 279p | LOW: 215p |
| DIVIDEND YIELD: | 3.1% | PE RATIO: | 26 | |
| NET ASSET VALUE: | 64p* | NET DEBT: | 66% | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 46.1 | 3.7 | 3.2 | 3.7 |
| 2015 | 49.4 | 4.5 | 3.9 | 3.8 |
| % change | +7 | +23 | +23 | +3 |
Ex-div: 17 Mar Payment: 7 Apr *Includes intangible assets of £108m, or 124p a share | ||||
