Wilmington PLC AGM Statement and Q1 Trading Update (9329F)
November 01 2018 - 3:00AM
UK Regulatory
TIDMWIL
RNS Number : 9329F
Wilmington PLC
01 November 2018
1 November 2018
Wilmington plc
('Wilmington', 'the Group' or 'the Company')
AGM Statement and Q1 Trading Update
Wilmington plc, the provider of information, education and
networking services in Risk & Compliance, Healthcare and
Professional knowledge areas, today announces a trading update for
the three month period to 30 September 2018. This statement is
being made ahead of its Annual General Meeting that is taking place
later today.
Trading Update
In what is traditionally the quietest trading period for the
Group, revenue performance in the first quarter has been
reasonable, with a mix of performances across the different
divisions. Overall revenue reduced 1% on an organic basis (i.e. at
constant currencies and after adjusting for acquisitions and
disposals) compared to the same period last year. This compares to
the 3% organic revenue decline experienced across the prior
year.
On a divisional basis, revenue in the Risk & Compliance
division was up 7% organically, with good momentum in the main
Compliance business, partly as a result of favourable timing issues
that accelerated revenue from Q2 into the first three months this
year. In the Healthcare division revenue declined 7% on an organic
basis reflecting the reduction in deferred revenue noted in
September's full year results announcement, as well as the
continued impact of the decision to reduce US networking events to
focus on improving profitability. Importantly from the perspective
of future revenue progression in Healthcare, new business sales in
the first quarter in the UK Healthcare business were up over 2%
year on year and early indications for Q2 are that sales are
expected to be further up compared to weak comparatives in the
prior year. Revenue in the Professional businesses was flat year on
year, excluding the impact of Ark, the legal services business that
was closed in the first half of last year.
Profit in the period, as anticipated, was down year on year due
to the previously disclosed cost increases and investments made
last year. This position was exacerbated slightly by a weaker than
expected product mix in Q1 although this is expected to be a timing
issue that will reverse over the course of the full year.
Net debt at 30 September 2018 was GBP44.4m (30 June 2018:
GBP39.6m; 30 September 2017: GBP42.4m). The outflow since the start
of the year is a function of usual seasonal outflows, and the final
earn-out payment for SWAT which was acquired in July 2016.
Outlook
There is no change in anticipated trading outlook since the full
year 2018 results announcement on 12 September 2018. The overall
outcome from the divisional revenue and sales performance in the
first quarter gives some early encouragement that momentum across
the Group is starting to shift as required to achieve full year
revenue and profit expectations. Whilst uncertainties remain within
the macro economic environment, the changes in regulations that
will come into force in the UK as a result of Brexit are likely to
lead to new business opportunities in the second half of the year
which will help to underpin our growth plans.
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.
For further information, please contact:
Wilmington plc
Pedro Ros, Chief Executive Officer
Richard Amos, Chief Financial Officer 020 7422 6800
FTI Consulting
Charles Palmer / Dwight Burden /
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, Healthcare and Professional areas. Wilmington employs
close to 1,000 people and has customers in 120 countries.
Wilmington plc is a premium listed company on the main market of
the London Stock Exchange.
END
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END
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