Wellcom Group saw its half year revenue down 8 per cent from $80.3m to $73.9m, but the profit after tax was up 6 per cent from $5.4m to $5.7m.
Net revenue excluding print management was also lower than the previous year coming in at $46.9m from $52.1m, a 5 per cent decline. However, the EBITDA was up at $9.84m, a 5 per cent rise from last year’s result of $9.39m.
Wayne Sidwell executive chairman of Wellcom Group says, “We are pleased to report a result reflecting a 6 per cent increase in earnings per share. Careful cost management practices have followed generally challenging market conditions and the recent closure of two large clients, Dick Smith Electronics and Masters Home Improvements.”
These results followed adverse currency movements with net revenues excluding foreign exchange impacts growing 1 per cent on the previous corresponding period.
[Related: Wellcom half-year revenue soars]
The first half also saw the absorption of the prior year account losses of Stream Solutions, Dick Smith Holdings and Masters Home Improvements. New business wins included AHM Medibank, Sigma Pharmaceuticals, Chemmart, Treasury Wine Estates, Pernod Ricard and Havas Worldwide.
Sidwell says, “Wellcom’s expertise is in ensuring our clients’ content is delivered in the right context, with speed, accuracy and consistency. Our ongoing development of technology, through our proprietary Knowledgewell software, enables it to reduce lead times and realise significant cost savings for clients.
“A positive outlook for the Group with strong prospects in key markets, and a debt-free balance sheet, has allowed the fully franked interim dividend to be increased to 9.5 cents a share.”
Wellcom says it expects moderate growth for the full financial year, notwithstanding generally subdued market conditions. The business continues to pursue complementary acquisitions that would augment both geographic and production, capabilities, and deliver increased shareholder returns over the longer term.
From March 1 Steve Rees will retire from his role as CEO in the Australia/New Zealand branch with Andrew Sidwell – son of Wayen Sidwell – stepping up to the plate. Rees will remain with the business in an advisory capacity. Andrew Sidwell has held a variety of senior management positions within the group over the past eight years, recently as managing director of Wellcom London.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter