Wellcom achieved double digit profits and a 28 per cent sales boost in FY 2015, thanks to winning big clients and further overseas expansions. The company increased its profits by 14 per cent for the 2015 financial year to $9.8m, with a 28 per cent net revenue jump to $115.4m, and statutory revenue increase of 37 per cent to $85.9m.
Wayne Sidwell Wellcom CEO
Wayne Sidwell, Wellcom CEO, welcomed the results, and predicted a further 10 per cent growth in earning per share for this financial year from new contracts, organic growth, and new acquisitions. The Australasian operations of the pre-media and print management company grew by 12.1 per cent to $53m, due to new content creation business wins in Australia with major names including Stockland, Kmart, Target, and Super Cheap Auto. However, the new business wins in its home country are not as profitable, with margins falling from 25.4 per cent to 23.5 per cent. This was the same in other markets with overall margins down from 21.2 to 19.5 per cent, particularly in the UK as it says absorption costs form new business wins. Wellcom is expecting its British arm’s margins to improve next year. There was also some job growth within the company as its Australasian operation added 18 new jobs, 16 of which are in Australia to service its newly-won clients, several being photographers. Its Malaysia Centre of Excellence added two new staff, while the new Hong Kong office has just been set up and has no staff while the company sources work for it. Andrew Lumsden, Wellcom chief financial officer, says the company is seeing its Malaysian operation grow organically within the region, and has the ability to offer its Australian client base improved turnaround times. Wellcom’s American business the Lab made a $3.9m profit on nearly $20m in sales for its first full year in the group – 26.9 per cent more than its turnover before the company bought it for $7.1m in March 2014.
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