Wellcom announces 33% climb in profit as it prepares for sale to Innocean
Creative production and digital marketing services company Wellcom has announced a 4% increase in statutory revenue to $160.95m, and a 33% uplift in profit after tax from continuing operations to $15.6m.
The news comes three weeks after the company announced it had entered into a Scheme Implementation Deed with Innocean Worldwide, which will see Innocean acquire 85% of the issued share capital of Wellcom for $6.70 per share.
Wellcom’s financial results (Click to enlarge)
The Scheme Consideration values Wellcom at $265.8m on a fully-diluted basis.
The results for the 2019 financial year, released today, show an EBTIDA (earnings before interest, tax, depreciation and amortisation) of $27.81m (up 36% from last financial year), and the company has borrowings (less cash and cash equivalents) of $730,000.
Wellcom said the increases were thanks to new business wins, including David Jones in Australia.
Chairman of Wellcom, Wayne Sidwell, said the company is in a strong position.
“Innocean’s offer for Wellcom shares reflects Wellcom’s leading market position and strength of its underlying business,” he said.
“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.”
Under the proposed deal – which remains subject to shareholder and court approval – Sidwell would retain 15% of the shares in Wellcom.
Should the deal get the necessary approvals, it would be implemented in late 2019.
Wellcom provides advertising and marketing content production services; design, artwork and retouching; digital photography; and television production. Innocean (a fusion of the words ‘innovation’ and ‘ocean’) provides clients with above and below the line campaigns, digital, social, PR and media services. Its Australian office opened in 2008 with foundation clients Hyundai and Kia
