Wellcom eyes further US growth

Wellcom has turned in healthy financials for FY14, with profits up by 9.5 per cent to $8.6m as it grows steadily with increased sales and business flowing in from its North American expansion.

The print manager and pre-media company saw a 17 per cent net revenue rise to $62.7m and statutory revenue increase of 15 per cent to $90.1m. EBITDA rose nine per cent to $13m.

The about $27m revenue difference consisted of print management pass through costs.

The company says it has seen organic growth from its existing clients as well as the American venture, and new Aussie client wins including David Jones, Target, Kmart, Stockland and Merck, Sharp & Dohme Pharmaceuticals.

Its $7.1m acquisition of American pre-media and print management firm theLab in March has so far netted $5.2m for the company in its four months of ownership.

Through theLab’s turnover of $14.5m, more is expected in future years from both its own business and through exposing Wellcom to multinational brands in the US.

Wayne Sidwell, executive chairman of Wellcom, says the acquisition continues the company’s strategy for geographic expansion.

He says, “Wellcom now has the ability to service global customers in all leading consumer markets, with operations in Australia, New Zealand, Singapore, Malaysia, the United Kingdom and the United States of America.

“It is a strong base from which to establish a meaningful presence in the US market.”

Revenue from Australasian operations increased 5.8 per cent to $47.3m while the segment result jumped 10.3 per cent to $12m.

Wellcom has no net debts, despite funding the entire acquisition cost from its cash reserves, and increased its net assets from $56.7m to $58.4m.

The company says this financial position “provides significant capital to pursue complementary acquisitions as they arise.”

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