Wilmington (WIL) H2 2024 earnings summary

Executive summary

• Ongoing revenue grew 14% year-over-year, with organic revenue up 9% and annual recurring revenue rising 16% to 36% of total, despite divestitures.

• Ongoing adjusted profit before tax increased 42% to £24.1m, and operating margins for ongoing businesses rose to 31%.

• Portfolio realigned to focus on Governance, Risk, and Compliance (GRC) through one acquisition (Astutis) and three disposals.

• Robust balance sheet with net cash at £67.8m as of 30 June 2024.

• Final dividend of 8.3p, total FY24 dividend up 13% to 11.3p.

Financial highlights

• Total revenue increased 2% to £126.0m; ongoing revenue up 14% to £89.7m.

• Ongoing operating profit rose 28% to £28.1m; organic operating profit up 24%.

• Continuing adjusted profit before tax up 42% to £24.1m; adjusted basic EPS up 41% to 19.8p.

• Free cash flow before dividends was £22.6m; net cash increased by £30.0m to £65.0m.

• Cash conversion of profits at 116%.

Outlook and guidance

• Consistent and sustainable organic revenue and profit growth expected, with improved margins.

• Current trading is in line with expectations.

• Continued investment in operational excellence and technology, including further rollout of the Digital Hub platform.