WELLCOM GROUP LIMITED 
By Lodged with the ASX under Listing Rule 4.3A
Preliminary financial report Wellcom Group Limited ACN 114 312 542 Current reporting period: Year ended 30 June 2012 Previous reporting period: Year ended 30 June 2011This preliminary final report is provided to the Australian Securities Exchange (ASX) under ASX Listing Rule
4.3A.
Results for announcement to the market Financial Results $'000 Revenue * up 54.8% to 88,638 Profit after tax from continuing operations attributable to members up 4.8% to 9,586 Profit after tax from ordinary activities attributable to members down 0.4% to 9,586 Net profit for the period attributable to members down 0.4% to 9,586* Revenues (excluding print management pass through costs) of $55.76m (2011: $52.67m) represented an increase of 6% over the previous corresponding financial period.
Dividends / Distributions | Amount per security | Franked amount per security |
Final dividend for the period ended 30 June 2012 Interim dividend for the period ended 31 December 2011 | 10.0 ¢ 8.0 ¢ | 10.0 ¢ 8.0 ¢ |
Record date for determining entitlements to the final dividend Payment date for final dividend | 5 September 2012 19 September 2012 | |
Contents |
Results for announcement to the market, based on the audited
financial report of Wellcom Group Limited for the year
ended
30 June 2012.
Additional Appendix 4E disclosure requirements can be found
in the annual financial report of Wellcom Group Limited for
the year ended 30 June 2012, lodged in conjunction with this
report.
The information contained in this report is to be read in
conjunction with any announcements made to the market by
Wellcom Group Limited during the financial period.
For further information
on Wellcom Group Limited, please visit our website at: www.wellcom.com.au
30/06/2012 Page 1
The year ended 30 June 2012 saw the successful integration of
the acquired business of iPrint Corporate Pty Ltd, previously
a 50% equity accounted joint venture between Wellcom Group
Limited and Australian Postal Corporation, which was acquired
on 30 June 2011. The business of Mission Possible (Create)
Ltd, acquired on 1 July 2011, was also successfully
integrated into the business with the subsequent commencement
of pre-media studio services to BBH London. BBH is a leading
global creative advertising agency with offices in London,
New York, Singapore, Mumbai, Shanghai and Sao Paolo whose
client list includes British Airways, Waitrose, Dulux,
Unilever, Axe/Lynx, ITV, Johnnie Walker and Audi. Details
relating to both these acquisitions are disclosed in further
detail in note 28 of the notes to the consolidated financial
statements.
The Group grew revenues and earnings across all jurisdictions
notwithstanding continued investment in technology, including
the Company's proprietary 'Knowledgewell' software and the
recently launched 'Canopy' proprietary software tool.
'Canopy' combines digital product management with
distribution, converting client assets into marketing offers
that can be pushed into multiple sales channels for any
online device.
Effective 1 July 2012 Wellcom announced the purchase of
Dreamwalk Pty Ltd, a specialist developer of innovative
mobile and web applications that is renowned for their
creative digital designers and expert programmers. The
acquisition, together with the Group's strong client base and
new business wins not fully reflected in the results for the
year ended 30 June 2012 is expected to provide the basis for
continued growth in the next financial year.
Group revenues of $88.64m (2011: $57.25m) represented an
increase of 55% over the previous financial year. Revenue
growth of 55% in Australasia and 51% in the UK was driven by
the addition of new customer contracts, together with the
acquisitions of iPrint Corporate Pty Ltd and Mission Possible
(Create) Ltd noted above.
Revenues (excluding print management pass through costs) of
$55.76m (2011: $52.67m) represented an increase of 6% over
the prior corresponding financial period.
EBITDA from continuing operations increased 10% to $15.16m
(2011: $13.82m).
Operating margins within the Group continued to improve when
viewed in comparison to the prior year, increasing from
28% to 29% in Australasia and from 11% to 19% in the United
Kingdom. Group operating margins increased from 26% to
27% in comparison to the prior year.
EBIT from continuing operations increased 11% to $13.18m
(2011: $11.85m). NPAT from continuing operations attributable
to the owners of the Group increased 5% to $9.59m (2011:
$9.15m), with the associated earnings per share from
continuing operations rising 5% to 24.46 cents (2011: 23.34
cents).
The effective tax rate for the Group was 31% (2011: 25%) with
a higher than average tax rate in the current year arising
from deferred tax adjustments relating to the acquisition of
iPrint Corporate Pty Ltd, and a lower than average tax rate
in the prior year relating primarily to joint venture profits
being recognised as dividends and their subsequent tax-free
contribution to Group profits.
The shareholder returns presented below are based on results from continuing operations.
2012 2011
Basic earnings per share (cents) | 24.46 | 23.34 |
Return on net assets (%) | 17.30 | 17.42 |
Return on net assets excluding goodwill & intangibles (%) | 44.73 | 48.19 |
Dividend payout ratio (%) | 73.59 | 70.70 |
30/06/2012 Page 2
The Group generated $6.1m in cash from operating activities
for the year ended 30 June 2012 (2011: $11.7m), with cash
generation returning to normal levels in the second half of
the year. Net assets increased $2.9m to $55.4m (2011:
$52.5m). As at 30 June 2012 Wellcom has no net debt with cash
and cash equivalents in excess of interest bearing
liabilities by
$15.5m (2011: $17.6m), providing flexibility to pursue
opportunities that may arise. The Group also has $7.9m of
unused facilities as at 30 June 2012 (2011: $10.6m), the
decrease on prior year reflecting a reduction in the Group's
overall facilities to $9.2m (2011: $11.8m)
A 100% franked final dividend of 9.0 cents per ordinary share
was paid on 15 September 2011. The total amount of the
dividend paid was $3,527,100.
A 100% franked interim dividend of 8.0 cents per ordinary
share was paid on 21 March 2012. The total amount of the
dividend paid was $3,135,200.
Total dividends paid during the financial year were 17.0
cents per ordinary share. The total amount paid was
$6,662,300.
A 100% franked final dividend of 10.0 cents per ordinary
share was declared on 22 August 2012. The record date for
determining entitlements to the final dividend is 5 September
2012. The final dividend will be paid on 19 September 2012.
The total amount of the final dividend to be paid is
$3,919,000. As this dividend was not declared prior to the
end of the financial year it has not been recognised in the
accounts for the year ended 30 June 2012.
Total dividends paid or declared in relation to the financial
year ended 30 June 2012 were 18.0 cents per ordinary share.
The total amount paid or payable is $7,054,200.
There are no dividend reinvestment plans or share buybacks
currently offered or in operation.
Net tangible assets per security at 30 June 2012 was 54.23
cents (2011: 48.46 cents).
There has been no change in control over the 100% owned
subsidiaries Wellcom London Ltd, Wellcom Group Pte Ltd,
Wellmalaysia Sdn Bhd, Wellcom Moving Images Pty Ltd and
iPrint Corporate Pty Ltd.
Name of Subsidiary/Joint Venture entity Ownership Interest Entity Net Profit/
At 30.06.12 | (Loss) After Tax $'000 | |
Wellcom London Ltd | 100% | $ 1,201 |
Wellcom Group Pte Ltd | 100% | $ (50) |
Wellmalaysia Sdn Bhd | 100% | $ (130) |
Wellcom Moving Images Pty Ltd * | 100% | - |
iPrint Corporate Pty Ltd * | 100% | - |
* Wellcom Moving Images Pty Ltd and iPrint Corporate Pty Ltd
were dormant for the whole of the financial year.
30/06/2012 Page 3
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