Wilmington revenues stabilise

Meanwhile, healthcare’s sales fell by 1 per cent to £20.5m, or by 5 per cent on an organic basis – a marked improvement from the prior period’s 8 per cent decline. Healthcare was central to Wilmington’s problems last year, as the EU’s new data privacy rules engendered “confusion” and as the group focused on integrating its UK healthcare assets. That said, UK healthcare enjoyed strong new sales bookings (albeit against weak prior-year comparatives). And while organic US healthcare sales tumbled 21 per cent, this reflected the company’s strategy to cull unprofitable events and the segment is “starting to settle down”.

Reported pre-tax profits were bolstered by £1.9m in proceeds from the sale of Wilmington’s credit reporting business ICP last July, and the comparative numbers were also hit by costs tied to the group’s head-office move. Adjusted pre-tax profits dropped 26 per cent to £6.7m, dampened – as expected – by cost increases such as last year’s infrastructure investments, and overarching cost inflation.

House broker Canaccord Genuity forecasts adjusted pre-tax profits of £19.8m and EPS of 17.9p for the June 2019 year-end (from £22.1m and 19.9p in FY2018).