2nd Interim Results-Replacmnt

Wilmington Group Plc 11 April 2002 Wilmington Group plc 11th April 2002 Wilmington Group plc advises that the following replaces its Second Interim Results announcement released today at 07:00 under RNS number 3638U. The two amendments are as follows. Firstly, one of the figures contained in Note 2 - 'Segmental Information', being Magazine Publishing Turnover is £39,379,000 and not £99,379,000 as previously disclosed. Secondly, in the Consolidated Cash Flow Statement the 2001 figure for (Decrease)/increase in cash in the period is £1,302,000 and not (£1,302,000) as previously disclosed. The full text is reproduced below and remains otherwise unaltered. Wilmington Group plc Second Interim results for the 12 months to 28th February 2002 * Solid organic sales growth in difficult markets * Dependable performance from professional information and training * Advertising sales slightly ahead but yields under pressure * Strong cash flow * Good financial position and well placed to expand Charles Brady, Chief Executive of Wilmington Group, said: 'In difficult market conditions, Wilmington has continued to develop and has delivered its ninth successive year of sales growth. We have benefited from the defensive characteristics of our professional information and training activities. We have undertaken a significant cost reduction exercise which has achieved savings of £2.0 million in a full year. However advertising yields still remain under pressure. Whilst the economic environment is currently having a negative impact on the media sector this should provide us with opportunities to meet our objective of long term profitable growth. We are particularly well placed to take advantage of our strong financial position and the significant bank facilities at our disposal. We therefore remain cautiously optimistic about our prospects in the longer term.' For further information please contact: Brian Gilbert, Executive Chairman Wilmington Group plc Tel: 020 7251 6499 Charles Brady, Chief Executive Wilmington Group plc Tel: 0121 355 0900 Chairman's Statement Second interim results for the twelve months ended 28th February 2002 I have pleasure in announcing the second interim results of Wilmington Group plc for the twelve months to 28th February 2002. As reported in last year's Annual Report, the financial year end of the company has been changed to 30th June in order to address the uneven split of profits, which has previously been significantly weighted to the second half of the yaer. As a result, this announcement covers interim results for the twelve months to 28th February 2002 and a full Report and Accounts will cover the 16 months to 30th June 2002. I am delighted that the company has delivered its ninth successive year of sales growth. Turnover during the period increased by 9.3% to £79.6 million from £72.8 million, principally from organic developments. However, a combination of the cost of investing for this growth and demanding trading conditions, particularly in advertising based products, has resulted in a reduction in profit before interest, tax and amortisation (adjusted profit) to £10.1 million from £12.1 million. The majority of our profits derive from professional information and training and these have increased in the period. However, (x%) of revenues derive from advertising in magazines where yields have been under intensive pressure. Overall, the revenues from these advertising products have increased but profits have reduced when compared with the same period last year. Operating profit fell from £9.2 million to £6.9 million. Adjusted earnings per share, which is calculated before amortisation of goodwill and intengible assets, fell from 10.17p to 7.58p. Basic earnings per share has fallen from 7.02p to 3.63p. Your Board remains committed to a progressive dividend policy and is therefore pleased to propose an interim dividend of 2.50p per ordinary share for the twelve months ended 28th February 2002 which will be paid on 22nd May 2002 to eligible shareholders registered on 19th April 2002. A final dividend will be proposed with the results for the 16 months to 30th June 2002. A fundamental pillar of our business is its ability to generate strong cash flow. Operational cash inflow of £10.6 million is 105% of operating profit before amortisation compared with 94% last year. Business Review Our results demonstrate that, notwithstanding the implications of the current economic climate, we continue to make further progress in our strategy for long-term profitable growth. This strategy is based on the ownership of quality communications assets that meet the information requirements of professional business communities and generate sustainable, profitable revenue streams. We serve these markets through magazines, databases, electronic information, training and other media. Although no major acquisitions were made during the last twelve months, previous acquisitions have been integrated well into the Group. We continue to pursue suitable new opportunities that would complement the range and diversity of our existing revenue streams. Given the current market environment, the Board believes that Wilmington will be able to use its strong financial position to purchase valuable assets at attractive prices. Revenues from our professional information and training activities have increased since last year. In particular, our training business has strong defensive qualities as it is based on the compulsory training of UK solicitors. We are not dependent on advertising based magazines for the majority of our profits. However, even before the events of 11 September 2001, we believed that pressure on advertising yields would increase. We therefore implemented a significant cost reduction exercise, which achieved savings in the region of £2 million in a full year at a cost of less than £0.5 million. In addition, we are in the process of comprehensively reviewing our entire portfolio and the structure of our magazine publishing activities in particular. These are challenging times for a media business and I would like to thank my fellow directors, senior management and the Group's employees for their continuing efforts and commitment. In February, I announced that Charlie Brady was appointed Chief Executive of the Group. Charlie has demonstrable management and leadership skill and I believe he will be instrumental in moving the business forward. Charlie takes over from Rory Conwell, who stepped down from the position of Chief Executive for personal reasons. I am pleased to say that Rory will remain on the Board with specific responsibility for the development and expansion of our business information activities. Outlook We are a broadly based company with valuable assets and strong cash flow, much of it deriving from subscriptions and mandatory training. I am pleased to report that these businesses continue to trade well. In contrast, difficult trading conditions persist in our magazines' market where we are heavily dependent on advertising revenues. We continue to review our operations and have taken action to reduce our cost base to compensate for reduced margins on advertising sales. Looking ahead, Wilmington remains committed to long term profitable growth and, to help us meet our objective, a review of our magazine portfolio is under way. We are looking to focus on markets where we believe there is good growth potential and where we believe we can present a resilient product offering to the sector. The market place provides us with many opportunities for growth and we are particularly well placed to take advantage of these on account of our strong financial position and the significant bank facilities at our disposal. We therefore remain cautiously optimistic about the prospects in the longer term. Brian Gilbert Chairman 11th April 2002 Notes Consolidated Profit and Loss Account Twelve months Year Ended Ended 28th February 28th February 2002 2001 (unaudited) (audited) £'000 £'000 Notes Turnover 2 79,562 72,769 Cost of sales (28,471) (25,026) Gross profit 51,091 47,742 Operating expenses (40,986) (35,630) Operating profit before amortisation of goodwill 10,105 12,113 and intengible assets Amortisation of goodwill and intengible assets (3,256) (2,936) Operating profit 6,849 9,177 Interest payable and similar charges (272) (299) Interest receivable and similar income 37 203 Profit on ordinary activities before taxation 2 6,614 9,081 Taxation 3 (2,744) (2,846) Profit on ordinary activities after taxation 3,870 6,235 Minority interests (917) (566) Profit for the period and attributable to 2,953 5,669 shareholders Dividends (2,037) (2,030) Retained profit for the period 916 3,639 Earnings per ordinary share 4 3.63p 7.02p Diluted earnings per ordinary share 4 3.16p 6.93p Adjusted earnings per ordinary share 5 7.58p 10.17p There will be no recognised gains or losses in the twelve months ended 28th February 2002 (2001 - £Nil) other than those shown in the profit and loss account. Consolidated balance sheet As at As at 28th February 28th February 2002 2001 (unaudited) (audited) £'000 £'000 Fixes assets Goodwill and intangible assets 53,172 52,760 Tangible assets 11,209 11,463 64,381 64,223 Current assets Stock and work in progress 1,520 1,540 Debtors 19,151 18,489 Cash at bank and in hand 967 1,833 21,638 21,862 Creditors: Amounts falling due within one year (22,320) (23,691) Net current (liabilities) (662) (1,829) Total assets less current liabilities 63,699 62,394 Creditors: Amounts falling due after more than one (2,091) (2,094) year Net assets 61,608 60,300 Capital and reserves Called up share capital 4,065 4,057 Share premium account 39,936 39,792 Other reserves 949 949 Profit and loss account 15,375 14,459 Shareholders' funds 60,325 59,257 Minority interests 1,283 1,043 61,608 60,300 Consolidated cash flow Twelve months Year ended ended 28th February 28th February 2002 2001 (unaudited (audited) £'000 £'000 Notes Reconciliation of operating profit to net cash inflow from operating activities: Operating profit 6,849 9,177 Adjustment for items not involving the flow of 5,062 4,237 funds Net working capital movement 6 (1,263) (2,053) Net cash inflow from operating activities 10,648 11,361 Returns on investment and servicing of finance Interest received 37 203 Interest paid (272) (790) Net cash outflow (235) (587) Taxation Tax paid (3,229) (3,235) Capital expenditure and financial investment Purchase of goodwill and intangible assets (3,226) (1,547) Purchase of tangible fixed assets (1,747) (5,375) Sales of tangible assets 195 792 Net cash outflow (4,778) (6,130) Acquisitions and disposals Purchase of subsidiary undertakings (639) (3,313) Equity dividends paid (2,513) (1,521) Cash outflow before financing (746) (3,425) Financing Issue of shares 152 28,727 Repayment of bank loan - (24,000) 152 4,727 (Decrease)/increase in cash (594) 1,302 Reconciliation of net cash flow to movement in net (debt)/cash (Decrease)/increase in cash in the period (594) 1,302 Cash outflow from decrease in net debt - 24,000 Change in net (debt)/cash resulting from cash flow (594) 25,302 Arising on acquistion 49 885 Net cash (debt) brought forward 1,512 (24,675) Net cash carried forward 967 1,512 Notes 1. Nature of information The interim accounts for the twelve months ended 28th February 2002 are neither audited nor reviewed by the Company's auditors. The comparative figures for the year ended 28th February 2001 are not the Company's statutory accounts within the meaning of Section 240 of the Companies Act 1985 but are abridged from such accounts which have been reported on by the Company's auditors and delivered to the Registrar of Companies. The report of the auditors on such accounts was unqualified and did not contain any statement under Sections 237(2) or 273(3) of the Companies Act 1985. The interim accounts are prepared on the basis of the accounting policies set out in the accounts of the Group for the year ended 28th February 2001. 2. Segmental information Twelve months Year ended ended 28th February 28th February 2001 2002 (audited) (unaudited) £'000 £'000 Turnover: Information 20,032 17,791 Magazine publishing 39,379 37,388 Professional training 20,151 17,590 79,562 72,769 Profit before taxation: Information 4,015 4,160 Magazine publishing 1,206 3,737 Professional training 4,884 4,216 10,105 12,113 Operating profit before amortisation: Less: amortisation (3,256) (2,936) Operating profit 6,849 9,177 Less: interest (235) (96) Profit on ordinary activities before taxation 6,614 9,081 3. Taxation There is a corporation taxation charge for the twelve months ended 28th February 2002 of £2,744,000 (2001 - £2,846,000) based on the Group's profits for the period at current corporation tax rates. The tax charge as a percentage of profit before taxation is 41.5% because of the amortisation of certain intangibles. 4. Earnings per ordinary share Earnings per share is calculated on the basis of profit on ordinary activities after taxation and minority interests divided by 81,246,874 (2001 - 80,734,060) being the weighted average number of ordinary shares of 5p in issue. The diluted earnings per share is calculated on the basis of profit on ordinary activities after taxation and minority interests divided by 81,686,345 (2001 - 81,807,287) being the diluted weighted average number of ordinary shares of 5p in issue. 5. Adjusted earnings per ordinary share In order to show results on a comparable basis to prior years before adoption of FRS10 'Goodwill and Intangible Assets', an adjusted earnings per ordinary share has been calculated using profit after taxation and minority interests but before amortisation of goodwill and intangible assets of £6,162,000 (2001 - £8,210,000). 6. Net working capital movement Twelve months Year ended ended 28th February 28th February 2001 2002 (audited) (unaudited) £'000 £'000 Decrease/(increase) in stock and work in progress 20 (737) (Increase) in debtors (486) (2,546) (Decrease)/increase in creditors (797) 1,230 (11,263) (2,053) Copies of this report are available from the Company's registered office at Paulton House, 6 Shepherdess Walk, London N1 7LB Advisers Financial Advisers and Stockbrokers Registrars Hoare Govett Limited Lloyds TSB Registrars Scotland 250 Bishopsgate P O Box 28448 London EC2M 4AA Finance House Orchard Brae Edinburgh E44 1WQ Registered Auditors Principal Bankers PKF Barclays Bank plc New Garden House P O Box 544 78 Hatton Garden 54 Lombard Street London EC1N 8JA London EC3V 9EX Solicitors Lawrence Graham 190 Strand London WC2R 1JN This information is provided by RNS The company news service from the London Stock Exchange

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