28th Jun 2019 11:25
(Alliance News) - Wilmington PLC on Friday said underlying trading is in line with expectations but organic revenue is likely to be at the lower end of guidance as its fourth quarter is set to be flat.
The information, education and networking services provider said its organic revenue growth levels exceeded expectations in its third quarter, but said the fourth quarter "is likely to be approximately flat year on year".
Organic revenue is defined by Wilmington as excluding exchange rate fluctuation, as well as disposals and acquisitions.
Wilmington's financial year ends on Sunday, and although organic revenue growth is expected, it will be "towards the lower end of the previously anticipated low single digit range" overall.
The company is expecting the adoption of a new revenue accounting standard, IFRS 15, to hurt results as well. In financial 2018, the firm suffered a GBP500,000 negative impact due to its adoption of IFRS 15, and this is likely to be worse in financial 2019 "due mainly to growth in revenue from on-line training programmes".
Second half cash flow generation was strong, and Wilmington has not altered its expectations in terms of year-end debt.
Risk & Compliance division revenue is set to align with Wilmington's mid-single-digit growth target, and Healthcare division organic revenue growth for the year is expected to be "around 1%" following a 5% decline in the first half.
The firm's Professional businesses, however, has suffered tough market conditions over Brexit and political troubles in the UK, which has lead to an expected " low single digit organic decline in revenues".
A new chief executive, Mark Milner, joins Wilmington in Monday, whereupon interim executive chair Martin Morgan will go back to being non-executive chair.
Shares in Wilmington were down 1.5% at 198.00 pence on Friday morning.
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