Print management firm, Wellcom Group has recorded a double digit revenue increase in its first half year results with statutory revenue jumping 47 per cent to $80.33m, despite uncertainty surrounding its retail clients Dick Smith and Masters. The results are in line with previous years, with the company continuing to deliver double digit revenue and profit rise. All figures received a significant boost including net revenue which increased 26 percent to $52.11m; EBITDA, which rose 21 per cent to $9.39m; and profit after tax, which jumped 16 per cent to $5.39m. The company admits its strong first-half will offset the second-half, which is likely to be impacted by subdued market conditions and the current woes of its retail clients, Dick Smith and Masters.
Wellcom Group executive chairman Wayne Sidwell
Last week, electronics retailer Dick Smith announced the closure of its 300 Australian stores with 3000 jobs lost. This follows news Woolworths will sell off its embattled hardware venture, Masters which is expected to cost printers around $7m. Wellcom Group executive chairman Wayne Sidwell reports the company has reliable operating cash flows, a strong balance sheet and acquisition strategy. He says, “We are delighted to report a result reflecting a 16 per cent increase in earnings per share. The business has successfully integrated the recent overseas acquisitions of Dippin’ Sauce (US) and Addictive Pixel (UK), whilst realising the benefits of investments made within the UK operation in the prior year.” Wellcom has secured new business with Telstra (Australia), Michael Kors (UK/US), and has also expanded its UK partnership with global ad agency Bartle, Bogle and Hegarty. Following the company’s results growth, Directors have declared a fully franked interim dividend of nine cents per share, equating to a payout ratio of 65 per cent which is expected to be paid on March 18.
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