Wilmington PLC AGM Statement and Q1 Trading Update (9329F)

TIDMWIL

RNS Number : 9329F

Wilmington PLC

01 November 2018

1 November 2018

Wilmington plc

('Wilmington', 'the Group' or 'the Company')

AGM Statement and Q1 Trading Update

Wilmington plc, the provider of information, education and networking services in Risk & Compliance, Healthcare and Professional knowledge areas, today announces a trading update for the three month period to 30 September 2018. This statement is being made ahead of its Annual General Meeting that is taking place later today.

Trading Update

In what is traditionally the quietest trading period for the Group, revenue performance in the first quarter has been reasonable, with a mix of performances across the different divisions. Overall revenue reduced 1% on an organic basis (i.e. at constant currencies and after adjusting for acquisitions and disposals) compared to the same period last year. This compares to the 3% organic revenue decline experienced across the prior year.

On a divisional basis, revenue in the Risk & Compliance division was up 7% organically, with good momentum in the main Compliance business, partly as a result of favourable timing issues that accelerated revenue from Q2 into the first three months this year. In the Healthcare division revenue declined 7% on an organic basis reflecting the reduction in deferred revenue noted in September's full year results announcement, as well as the continued impact of the decision to reduce US networking events to focus on improving profitability. Importantly from the perspective of future revenue progression in Healthcare, new business sales in the first quarter in the UK Healthcare business were up over 2% year on year and early indications for Q2 are that sales are expected to be further up compared to weak comparatives in the prior year. Revenue in the Professional businesses was flat year on year, excluding the impact of Ark, the legal services business that was closed in the first half of last year.

Profit in the period, as anticipated, was down year on year due to the previously disclosed cost increases and investments made last year. This position was exacerbated slightly by a weaker than expected product mix in Q1 although this is expected to be a timing issue that will reverse over the course of the full year.

Net debt at 30 September 2018 was GBP44.4m (30 June 2018: GBP39.6m; 30 September 2017: GBP42.4m). The outflow since the start of the year is a function of usual seasonal outflows, and the final earn-out payment for SWAT which was acquired in July 2016.

Outlook

There is no change in anticipated trading outlook since the full year 2018 results announcement on 12 September 2018. The overall outcome from the divisional revenue and sales performance in the first quarter gives some early encouragement that momentum across the Group is starting to shift as required to achieve full year revenue and profit expectations. Whilst uncertainties remain within the macro economic environment, the changes in regulations that will come into force in the UK as a result of Brexit are likely to lead to new business opportunities in the second half of the year which will help to underpin our growth plans.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement this inside information is now considered to be in the public domain.

For further information, please contact:

 
 Wilmington plc 
  Pedro Ros, Chief Executive Officer 
  Richard Amos, Chief Financial Officer    020 7422 6800 
 
  FTI Consulting 
  Charles Palmer / Dwight Burden / 
  Leah Dudley                               020 3727 1000 
 

Notes to Editors

Wilmington plc is the recognised knowledge leader and partner of choice for information, education and networking in Risk & Compliance, Healthcare and Professional areas. Wilmington employs close to 1,000 people and has customers in 120 countries. Wilmington plc is a premium listed company on the main market of the London Stock Exchange.

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November 01, 2018 03:00 ET (07:00 GMT)