Wellcom profits soar as it says goodbye to ASX

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Profits at Wellcom soared in its final year set of results for the ASX, with EBITDA surging by 36 per cent on revenue up by 12 per cent.

Profit surge: Wayne Sidwell, executive chairman, Wellcom.
Profit surge: Wayne Sidwell, executive chairman, Wellcom.

Revenue excluding print management pass through costs hit $120.4m, up from $107.6m last year, while EBITDA achieved was $27.8m, up from $20.5m last time around.

Net profit after tax from continuing operations was up by 33 per cent to $15.6m from $11.7m last year. EBIT was up by 35 per cent to $23.9m. The company increased its interim dividend by 10 per cent to 11c.

Revenues increased in each of Wellcom’s operating segments (Australasia, United States and United Kingdom), with contributions from new business wins including David Jones (Australia), Countdown (NZ), Southeastern Grocers (US), HomeAway-Expedia (UK), The Body Shop International (UK), and Christie’s (UK).

The global creative production and digital marketing services company was established by Wayne Sidwell, from the family behind Australia’s biggest prepress house Show Ads, and has just been sold to Korean advertising giant Innocean for $265m. Sidwell will retain a 15 per cent stake in the business and will continue in his role as executive chairman, with his son Andrew remaining as CEO.

Sidwell said: “Innocean’s offer for Wellcom shares reflects Wellcom’s leading market position and strength of its underlying business. It will be business as usual under Innocean’s ownership, and I am looking forward to continuing with Wellcom as an executive and shareholder.

“Innocean’s ownership will provide a great opportunity for Wellcom’s businesses and people by offering a larger geographical footprint and new opportunities in complementary business channels.”

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