Wilmington Share Discussion Threads

[km18] 16/3/2022 16:55

...from last year...

Company overview:
Wilmington Plc provides regulatory compliance solutions to enterprises and professionals. Their portfolio of services offers a wide range of information & data and training & education solutions. The information & data companies from the group provide authoritative risk and compliance data, whereas the training brands are focused on compliance trading and technical support. Both arms in the group generated roughly the same revenue for the FY2021.
Growth seems to be blended with numerous acquisitions and continuous CapEx over the last 10 years. Unfortunately, the acquisitions have generated a substantial amount of goodwill on the balance sheet at roughly 50% of the total assets. Latest impairment of intangibles was in the 2021 financial year amounting £15m, and we hope the current period should be relatively impairment free. Growth on the financial statements is average, with revenue seeing a 1.43% CAGR and ROCE is growing at 7.82%. Valuation looks cheap, as forward P/E is around 15 and P/S is just above average for the industry. The only red flag apart from the goodwill is the net gearing which is too high for our taste at 75%.
Today’s update is just an AGM result, but inside there is an in-line performance confirmation. The company has had an encouraging start of the new FY22. The cash flows are also “strong” due to a sale of a property. Given the limited info we have today, we will cover quickly the full FY21 results which came earlier in September. Organic growth in revenue was 3% and adjusted EPS reached 13.62p. The overall performance was badly hit by the impairment charge and drove the income statement bottom line in the red. To balance it off, cash conversion was 104% and 38% of the revenue came from subscription and membership fees, providing relatively good visibility. We suggest holding the stock for the moment (adding if it hits our levels) and observing it closely if you are interested in the sector. The recovery has been strong and they have almost reached the pre-Covid levels.

Short analysis (FY21):

Cash decreased due to a significant retirement of debt – Good news!
Net debt decreased to £28m
CA/CL = 0.62
Cash ratio = 0.12
P/S = 1.82
BV ps = 41.9p, falling from 49p in 2020
Operating loss of £391k
Gross profit margin at 18.5% which is marginally better than the previous year...

...from WealthOracleAM

[sphere25] 10/6/2021 15:57

Some stand out exchanges here today and someone has come in to bid for 50k at 200p (currently sat on the bid with 49999 left to fill on the book).

Chart looks interesting IF it breaks out.

WIL going to break out on heavy volume?

All imo
DYOR

[sphere25] 24/2/2021 08:44

250k buy print at 190p just now. Someone is keen - significant chunk for quiet ole WIL.

Is it breakout time?

All imo
DYOR

UPDATE: Unless that's a glitch, two further identical 250k buys at the same time as the one above but odd small lag in updating on the book.

FURTHER UPDATE: Price has broken out with a sharp move higher up to 202p. Double checked the two additional 250k buy prints and it was an error with an inadvertent additional 250k buy print then being corrected by another 250k print (i.e. - 250k) though ADVFN doesn't show corrections.

[sphere25] 23/2/2021 13:00

Price currently 182p.

I'm quietly nibbling away at these price levels ssshhhh.

It is illiquid this so not too many. It is still hard to buy without moving the price atm, but managing to grab a few when they come available as there is pretty much zero interest here, which is always a good sign!

I think this will comfortably head back over £2.

All imo
DYOR

[sphere25] 23/2/2021 09:37

Key 180p resistance under threat. Could have a nice pop higher if it breaks.

All imo
DYOR

[redwing1] 19/2/2021 09:45

I completely agree with you, Sphere25. Wilmington has come through the pandemic in impressive fashion so far, seamlessly migrating a high proportion of events online. Net debt has almost halved in a year too. Strong long-term hold.

[sphere25] 18/2/2021 15:51

So we're in reporting season now so a barrage of results will follow, particularly as we get into March. I don't imagine there being too many where investors will look at the results and next years earnings (or indeed the year after) and smell value.

Some of the moves on results already have been rather muted. Noted WIL today looking interesting and had a high level look in. Price hasn't recovered a great deal from pre-covid highs and they have managed to turn in a resilient revenue performance, profits actually higher than last year and dividend reinstated.

£157m market cap at 179p and net debt of £23m so an EV of £180m.

Net cash generated from operating activities £7m with FCF of £4.1m in the interims today. Last year the full year respective cash flow figures were £20.2m and £14.3m.

Pre-covid, the market was happy to sit at a valuation at around that 250p mark so a market cap of £220m.

The question is: Is the market being too bearish here and has the recovery been priced in?

If they can turn out such a resilient performance like this in such a difficult environment, what happens when the shackles are off?

Price is currently testing key resistance on the chart, but the spread on this one doesn't make it conducive to trading. Large gaps in the mornings at times too as orders take time to fill.

Much more than a short term contender?

All imo
DYOR

[phar lap] 19/8/2020 08:39

Odyssean Investement Trust take 3% holding.



About Odyssean Investment Trust

"In order to achieve OIT's investment objective, Odyssean Capital invests in a concentrated portfolio of well researched smaller companies, typically too small for inclusion in the FTSE 250."

[opodio] 16/1/2019 07:52

CEO leaves ahead of results. They be good? Bad?


Wilmington plc (LSE: WIL), the provider of information, education and networking services in Risk & Compliance, Professional and Healthcare knowledge areas, announces that Pedro Ros has informed the Board of his intention to step down from his position as Chief Executive Officer of the Company. The Board has agreed with Pedro that he will step down from the Board on 13 February 2019 and will be available over the following months to ensure a smooth and orderly handover.



Martin Morgan, Chairman, will act as Executive Chairman from 13 February until Pedro’s replacement is appointed. The Board will initiate a search for a new Chief Executive Officer and an update will be made in due course.



As previously advised, the Company will announce its half year results for the period to 31 December 2018 on Thursday 21 February 2019.

[allonblack] 16/10/2018 10:28

This one needs a new CEO. Current guy too focused on the new office and systems. Its not acceptable to tell shareholders that costs will rise faster than revenues. Not enough drive at the top here. I hope the Chairman is discussing this with shareholders.

[nw99] 06/7/2018 09:45

Profit warning

[ppreston1] 23/2/2018 15:55

Nice move upwards today post results. Anyone following these?

[ppreston1] 22/2/2018 09:11

Mixed results. However appointment of Martin Morgan as Chairman is a positive development and removes uncertainty about the leadership of the company. He has a lot of experience in the digital arena which will definitely help to drive WIL's digital strategy. I expect the share price to pick up later today.

[ppreston1] 04/1/2018 07:47

Great acquisition this morning and earnings enhancing immediately! Good to see they're expanding their digital strategy which will be key to future growth.

[ppreston1] 22/12/2017 11:32

At last the share price is beginning to wake up. Nice double bottom also formed on the chart.

[ppreston1] 23/11/2017 11:23

Another director buy announced today, yet share price continues to slide. This must be attracting some bid interest on a forward P/E of 10x.

[woodcutter] 13/10/2017 10:53

taken a position in WIL strong director buying and very cash generative. could benefit from the digital revolution and heavy compliance struture now in global business.

woody

[nw99] 03/11/2016 07:39

Mixed results

[deadly] 21/9/2015 15:18

Good recent results.
Can it break its all-time high despite the poor market conditions?

[albanyvillas] 29/5/2015 11:42

BID FROM EUROMONEY???

[dlku] 29/5/2015 08:17

keep on truckin