Australian creative production and marketing services company Wellcom Group saw its revenue rise to $75.8m for the half year, up 3 per cent from $73.928m in the prior corresponding period (pcp).
Wellcom’s net revenue excluding print management pass through costs was $52.12m, up 5 per cent from $49.68m, profit after tax from continuing operations for the period was $5.96m, up 5 per cent from $5.7m. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the Group increased 5 per cent from $9.8m in the pcp to $10.3m. Earnings before interest and tax (EBIT) for the Group rose by 5 per cent to $8.9m from $8.47m and net profit after tax from continuing operations increased by 5 per cent to $5.9m from $5.69m. Gross profit was $43.6m, up from $40.8m in the pcp.
The Australasian region of the business saw an increase in its net segment revenues of 1 per cent, from $27.6m in the pcp to $27.91m this year.
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Wayne Sidwell, chairman of the Wellcom Group said, “We are pleased to report a result reflecting a 5 per cent increase in earnings per share. The first half of the financial year has included the establishment of a full-service creative studio for Countdown (NZ), together with the first significant implementation of our Knowledgewell technology in an overseas market, with Tesco (UK). We continue to have a positive outlook for the Group's services, with strong prospects in all key markets."
Andrew Sidwell, Wayne Sidwell’s son is the current CEO, having replaced Steve Rees last year.
The Directors have declared a fully franked interim dividend of 10 cents per share, up from 9.5 cents per share in the pcp and equating to a payout ratio of approximately 66 per cent, up from 65 per cent the year before. In addition to the interim dividend, Wellcom is also having a fully-franked special dividend of 25 cents per share.
Wellcom says it will continue to push Knowledgewell, an online marketing management service, into overseas markets, following the recent implementations into major super market retailers of Tesco in the UK, Countdown in New Zealand and the current work with Southeastern Grocers in the US, due to be completed in the second half.
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