Interim Management Statement

RNS Number : 9929L

Wilmington Group Plc

17 May 2010

 



17 May 2010

Wilmington Group plc

 Interim Management Statement

Wilmington Group plc, the professional information and training group, today issues its interim management statement for the period up until the date of this announcement and incorporating the company's third quarter ended 31 March 2010.

Trading Performance

We reported in February that, "whilst we do not expect economic conditions to improve significantly in the short term, there are a number of positive indicators which bode well for the future performance of the Group In some areas we have started to see trading conditions easing compared to the prior year". Since then trading performance of the Group has been in line with our expectations.

Our Publishing & Information businesses have generally performed well throughout the economic downturn, benefitting from the cost savings made in the prior year and the improved operating structure. The Group's Publishing & Information assets continue to show resilience despite some signs of a deterioration of trading conditions in markets with exposure to the UK public sector.

Our Training & Events businesses experienced very difficult trading conditions during calendar year 2009 particularly in the legal and investment banking sectors. We are now seeing the benefit of the actions we took to reduce costs and improve the operating efficiency in some of the course programmes. The improvement previously reported in the level of bookings in the legal training market has continued together with strong growth in webinar bookings. It is also pleasing to report that trading since January in the investment banking sector has improved compared to the prior year.

In collaboration with the University of West of England we have launched a flexible Legal Practice Course to enable graduates to undertake the solicitors qualification examinations in a cost effective way that can also accommodate part time working and family commitments through its innovative and flexible approach to studying.

Outlook

Many of the Group's businesses have proved to be resilient, maintaining strong market positions throughout the recession. Only the legal and investment banking sectors suffered a significant downturn in revenues. In legal training bookings are now ahead of the prior year and in investment banking the bookings for our summer graduate induction programmes are at a significantly higher level than in 2009. However trading conditions remain difficult and revenue recovery remains fragile.

We have a strong balance sheet, low gearing, excellent cash flow and significant unutilised committed banking facilities until March 2012. We remain committed to our strategy of acquiring businesses with a strong strategic fit and the capability of generating long term value, and are ready to pursue opportunities which may arise in the future as we have been during the current year.

Along with our commitment to growth by acquisition we are excited by the emerging potential to grow our business and create value by organic development as we continue to work with our clients to meet their professional training and business intelligence needs.   We believe that the time is now right to invest in overseas expansion in the banking and finance sector and in new product development particularly with regard to deeper content and enhanced technology.  We expect to invest up to £2 million over the next 12 months and to see returns in the financial year ending June 2012 and beyond.

For further information, please contact:

Wilmington Group Plc	020 7422 6800
Charles Brady, Chief Executive
Basil Brookes, Finance Director
Weber Shandwick Financial	020 7067 0700
Nick Oborne or Clare Thomas
Numis Securities	0207 260 1309
James Serjeant
RBS Hoare Govett	0207 678 8000
Sara Hale

Notes to Editors

Wilmington Group plc is one of the UK's leading providers of information and training for professional business markets. The Group provides training, arranges industry events and publishes directories, databases, magazines and special reports for a variety of markets including the legal, health, accounting, pension, charities and financial sectors. Capitalised at approximately £119 million, Wilmington floated on the London Stock Exchange in 1995.

 

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