Pedro Ros, chief executive of Wilmington (WIL) , told the IC that increased "regulatory complexity" forms the backdrop to the media group's growth strategy. Once upon a time Wilmington was a conventional commercial publisher, but the group has morphed into a provider of information, education and networking services to business markets.
Full-year figures were broadly in line with analyst expectations although sales growth was "above trend". The risk and compliance business, the obvious beneficiary of the above-mentioned dynamic, recorded solid growth in the 12 months to June, although Wilmington's legal division found the going a little harder. The group's capabilities in the compliance market were enhanced post period-end through the acquisition of SWAT Group, a provider of training and technical compliance support to accountancy firms in London and the south-west.
Management took the decision to reduce the carrying value of goodwill in Ark and Central Law Training, which make up the bulk of the 'law for lawyers' business by £15.7m. Disregard this non-cash charge, and other amortisation and one-off items, and adjusted operating profits came in 11 per cent up on 2015 at £22.6m.
N+1 Singer expects adjusted EPS of 20p for the June 2017 year-end, rising to 21.7p the following year.
| WILMINGTON (WIL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 248p | MARKET VALUE: | £215m | |
| TOUCH: | 244-248p | 12-MONTHHIGH: | 279p | LOW: 230p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 49p* | NET DEBT: | 81% | |
| Year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 85.3 | 6.3 | 5.8 | 7.0 |
| 2013 | 85.0 | 5.1 | 4.2 | 7.0 |
| 2014 | 90.0 | 8.6 | 7.6 | 7.3 |
| 2015 | 95.1 | 10.3 | 9.0 | 7.7 |
| 2016 | 106 | -3.4 | -7.4 | 8.1 |
| % change | +11 | - | - | +5 |
Ex-div: 20 Oct Payment: 18 Nov *Includes intangible assets of £99.8m, 115p a share. | ||||
