WELLCOM GROUP MAINTAINS DIVIDENDS PER SHARE 18 FEBRUARY 2013

Wellcom Group Limited (Wellcom) (ASX: WLL), a leading provider of pre-media, photographic, technology and digital asset management services in Australia, NZ, Singapore, Malaysia and the United Kingdom, primarily to corporations and retailers, today announced its results for the half-year ended 31 December 2012.

1H13 $m 1H12 $m Change

Statutory Revenue 38.71 48.06 - 19%

Net revenue (excl. print management pass through costs) 27.38 29.56 - 7%

EBITDA 5.66 8.14 - 30% EBIT 4.78 7.13 - 33%
EBT 5.04 7.44 - 32%

Profit after tax from continuing operations 3.57 5.27 - 32% ¢ ¢

Earnings per share - from continuing operations
9.11 13.45 - 32%
Dividend per share 8.0 8.0 - Franking (%) 100 100 -
In commenting on the result, Mr Wayne Sidwell, Executive Chairman of the Wellcom Group said, "This has been a period of consolidation and investment in the future for Wellcom. In response to recent pricing pressure management has implemented cost management initiatives, including the establishment of a Malaysian Centre of Excellence, which together with new client wins and significant internal investment in current and future technology products, is expected to deliver solid growth for the years ahead. It is for this reason, coupled with a strong balance sheet and positive cash flows, that the dividend for the half- year ended 31 December 2012 has been maintained at 8 cents per share."

OPERATING PERFORMANCE

Wellcom recorded statutory revenue of $38.71m for the half-year to 31 December 2012 (1H12: $48.06m), representing a decrease of 19% over the previous corresponding period. Net revenue (excluding print management pass through costs) of $27.38m for the half-year (1H12: $29.56M) represented a decrease of 7% over the previous corresponding period.
Group margins were adversely impacted by the decline in revenues, decreasing 6% to 21% for the half-year on a net revenue basis, coupled with further investment in the growth of the software development division.
Profit after tax from continuing operations decreased by 32% to $3.57m (1H12: $5.27m) with an effective tax rate for the half-year of 29% (1H12: 29%).
The result for the half-year reflects significant internal investment in the Group's current and future technology products, together with the implementation of cost management initiatives, including the establishment of a Malaysian Centre of Excellence, which will protect and grow the Group's operating margins in the years ahead.

CASH FLOW AND BALANCE SHEET

The Group generated 4.23m in cash from operating activities for the half-year ended 31
December 2012 (1H12: $0.77m). At the 31 December 2012 Wellcom has no net debt with cash and cash equivalents in excess of interest bearing liabilities by $15.16 million (1H12:
$13.81 million). This, in combination with $8.07 million of unused facilities, provides significant capital to pursue growth opportunities as they arise.

DIVIDEND

The Directors have declared a fully franked interim dividend of 8.0 cents per share. The record date for determining entitlements to the interim dividend is 7 March 2013, and payment will occur on 21 March 2013.

OUTLOOK

The company's future growth will be underpinned with the ongoing investment in Wellcom's proprietary software suite, including Knowledgewell and Canopy.
Whilst improvement is expected in the second half we believe that full year EPS will be down around 20% on the previous corresponding period.
Wellcom continues to review complimentary acquisitions that would augment both the geographic and production capabilities of the business.
For further information contact: Wayne Sidwell
Executive Chairman
Wellcom Group Limited
(03) 9946 8000

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