Marketing services company Wellcom increases profit by 10%

Creative production and marketing services company Wellcom has announced a 7% increase in revenue and a 10% increase in profit after tax.

Wellcom services retailers, corporations and advertising agencies via its Knowledgewell product – a marketing software which automates tasks and “is currently used by leading household brands to produce marketing collateral with speed, accuracy and consistency”, according to the brand.

Wellcom’s profit for FY18 was $11.72m

Statutory revenue for the company climbed from $145.17m in the 2017 financial year to $155.17m (up 7%) and EBITDA (earnings before interest, tax, depreciation and amortisation) was up 9% from $18.73m to $20.49m.

Profit after tax was $11.72m, up 10% from FY17’s $10.63m.

Chairman of the Wellcom Group, Wayne Sidwell, said the company had experienced a strong finish to the year and he was pleased with the result.

The company is also well positioned for the future, he said.

Wellcom’s FY18 financial results

“The demand for high-quality visual content continues to grow, with the speed at which brands can produce this content playing a significant role in their success. Wellcom’s expertise is in ensuring that our clients’ marketing and advertising creative content is delivered in the right context, with speed, accuracy and consistency. The business is well positioned for the future, with the ability to service global customers in all leading consumer markets.”

The company flagged further growth, and said it anticipates full-year EPS [earnings per share] growth of between 10% and 15%, prior to acquisitions.

It has agreed to provisional terms for the acquisition of Singapore’s Brandsystems International, which includes Brandsystems Marcom Manager -a marketing resource management system that allows marketing departments to plan, budget, manage and analyse their marketing efforts.

The acquisition is expected to complete next month and will be funded by a combinarion of cash reserves and debt finance.

Sidwell said the Brandsystems Marcom Manager technology is visionary, and the company has a strong and experienced management team ready to move into their next phase of global expansion.

“The acquisition of Brandsystems further strengthens Wellcom’s technology offering, providing an end-to-end solution for businesses to plan, budget, execute, store and analyse marketing campaigns and content,” he said.

Sidwell had a fixed remuneration of $350,000 in FY18 – up from $290,000 the year prior – and was paid $30,000 in performance-based incentives.


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