Wilmington PLC Trading Statement (7923T)
06 July 2018 - 4:00PM
UK Regulatory
TIDMWIL
RNS Number : 7923T
Wilmington PLC
06 July 2018
6 July 2018
Wilmington plc
("Wilmington" or the "Group")
Year end Trading Update
Wilmington plc (LSE: WIL), the provider of information,
education and networking services in Risk & Compliance,
Professional and Healthcare knowledge areas, announces a trading
update for the full year ended 30 June 2018.
Trading Update
Following the completion of the year, Wilmington expects that
full year adjusted profit before tax will be broadly in line with
market expectations. This level of profitability has been achieved
despite revenue being lower than previously expected at around
GBP122m, with cost reduction actions offsetting the impact of the
revenue shortfall. Certain of these actions were one-off in their
nature and are not expected to benefit the current financial
year.
The second half of the year did not see the recovery in trading
performance previously anticipated. As a result, revenue for the
full year, whilst up 1% on an absolute basis will be down around 3%
on an organic basis, adjusting for the impact of acquisitions and
at constant currency.
Divisionally, revenue performance in the Healthcare division
continued to be a challenge in the second half, with no significant
improvement in performance in the core UK Healthcare business over
that experienced in the first half. Sales activity in that business
did however show signs of improving over the second half which
provides encouragement as the Group enters the new financial year.
Additionally, revenue in the Healthcare division has been impacted
by the previously communicated decision to reduce the output of
certain networking events in the US, although this had little
profit impact.
The Professional division has had a reasonable year. Excluding
the impact of the planned decision to close the Ark business last
year, revenue was flat on the prior year on an organic basis.
Growth in Accountancy offset a small decline in Investment Banking
with the Law businesses flat over the course of the year, helped by
a strong second half performance.
The Risk & Compliance division had a stronger second half
performance, driven in part by good membership uptake for the
International Compliance Association ("ICA"), an uplift in demand
for in-house courses in the UK, and strong demand in Asia
Pacific.
Net debt at the year end was around GBP40.0m (30 June 2017:
GBP40.0m; 31 December 2017: GBP45.9m). This improvement over the
second half of the year reflects good cash generation offset by the
cash impacts of the acquisition of Interactive Medica and outflows
associated with certain of the exceptional items that were reported
in the first half of the year.
Outlook
Given the challenges experienced in the second half of the year,
the Board now expects that Group revenue growth for the current
financial year just started will be in the low single digit
percentage range. Each division is expected to contribute to the
growth with the positive actions taken over the last year expected
to begin to bear fruit.
Whilst recognising the need for strict cost control, the Board
has identified that underlying costs will rise this year due to
inflationary pressures, the full year impact of the new London HQ
and IT infrastructure implemented last year and the one-off nature
of certain of the cost reductions achieved last year. The overall
impact of this is that the Board expects there will be a reduction
in profit for the current financial year compared with the prior
year which will be in the high single digit range.
The Board recognises that benefits from the significant actions
taken over the last year are taking longer to materialise than
previously expected. These actions have included investments in the
core digital platforms; in the new London HQ; and in integrating
the UK healthcare businesses (including the recently acquired HSJ)
into a single operating unit. The Board recognises that the
additional effort required for these actions impacted on growth
plans. It also notes that, in certain cases, cost reduction actions
have delayed the implementation and hence the benefits.
The Board continues to believe that the investments recently
made and the actions taken will yield the benefits planned and
hence remains confident in the medium-term prospects for the Group.
It remains committed to achieving the mid-single digit revenue
growth levels which it believes reflect achievable underlying
growth rates for its chosen markets.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement this inside information is now considered to be in the
public domain.
-End-
For further information, please contact:
Wilmington plc
Pedro Ros, Chief Executive Officer 020 7422 6800
Richard Amos, Chief Financial Officer
FTI Consulting
Dwight Burden / Emma Hall / Leah Dudley 020 3727 1000
Notes to Editors
Wilmington plc is the recognised knowledge leader and partner of
choice for information, education and networking in Risk &
Compliance, Professional and Healthcare areas. Capitalised at
approximately GBP210 million, Wilmington floated on the London
Stock Exchange in 1995.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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