Wellcom is growing steadily in the wake of its North American expansion with healthy profit and revenue increases from increased sales, and is eying further acquisitions to establish a global presence.
The pre-media and print management company boosted profits by 9.5 per cent for the 2014 financial year to $8.6m, backed up by a 17 per cent net revenue jump to $62.7m and statutory revenue increase of 15 per cent to $90.1m. EBITDA was up nine per cent to $13m.
The about $27m revenue difference consisted of print management pass through costs.
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The company says the higher sales was driven by a combination of organic growth from existing clients, its American expansion, and recent new business wins including Australian companies David Jones, Target, Kmart, Stockland and Merck, Sharp & Dohme Pharmaceuticals.
Its $7.1m acquisition of American pre-media and print management firm theLab in March has so far netted $5.2m for the company over Wellcom’s first four months of ownership.
With theLab having a turnover of $14.5m, considerably more expected in future years from both its own business and through exposing Wellcom to USA-based multinational brands.
Wellcom executive chairman Wayne Sidwell says the acquisition continues the company’s strategy for geographic expansion.
“Wellcom now has the ability to service global customers in all leading consumer markets, with operations in Australia, New Zealand, Singapore, Malaysia, the United Kingdom and the United States of America,” he says.
“It is a strong base from which to establish a meaningful presence in the US market.”
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Revenue from Australasian operations increased 5.8 per cent to $47.3m while the segment result jumped 10.3 per cent to $12m.
Wellcom has no net debts, despite funding the entire acquisition cost from its cash reserves, and increased its net assets from $56.7m to $58.4m,
The company says this financial position “provides significant capital to pursue complementary acquisitions as they arise”.
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