Wellcom sales up 8% as print management takeover bears fruit

The pre-media and print management company has posted its first-half results, with net profit after tax up 7% to $5.27 million.

At the beginning of the six-month period, Wellcom bought out iPrint, the print management joint venture it had shared 50:50 with Australia Post.

Wellcom’s financial report showed a 65% rise in statutory revenue to $48.06 million, while net revenue was $29.6 million – the $18.05 million difference was pass-through costs of broking print.

Factors driving the 8% increase in net revenue included iPrint, its buyout of London-based pre-media operation Mission Possible as well as “new contract wins within the pre-existing business in Australia”.

Wellcom said catalogues remained a bright spot in the period as the dour retail market pushed brands toward advertising.

Chief financial officer Julian Graham told ProPrint: “Our view has always been when things get tough for retailers, they advertise, and one of the most effective forms seems to be catalogues.”

Wellcom provides pre-media, photography and database management services for the catalogue business, though not printing.

The print management division, which is no longer carrying the iPrint brand, also notched up some wins. “Since we took it from Australia Post, we are managing print for some large retailers. We are not in the catalogue print management side but we do manage print for some large retailers.”

He declined to reveal names of any print management clients, but new customer wins mentioned in the financial report included Commonwealth Bank, Tattersalls Group and Bank of Melbourne.

Melbourne-headquartered Wellcom was founded by chairman Wayne Sidwell in 2000 and now has overseas operations in London, Singapore and Kuala Lumpur, Malaysia.

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