Given the extremes faced over the last 12 months; these results underline the fundamental strengths of the Wilmington business. The financial headlines revolve around non event related stability and the margin benefits of lower cost to deliver digital event and training formats. The speed at which Wilmington has been able to secure cost savings and react to client demand are the features that stand out from our perspective. Question marks still remain but these revolve primarily around the timing and extent of any face to face recovery and how this will translate into the group margin mix moving forward. For the time being, margins are benefiting at the expense of revenue. A full recovery will see revenue upside and the challenge for the group will be around the extent to which recent margin gains can be protected. The return of the dividend is a welcome sign of optimism and underpins a valuation that looks modest against a peer group that has re-rated significantly despite business mixes that looks less attractive than Wilmington’s
18 Feb 2021
H1 Results - Estimate upgrades
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H1 Results - Estimate upgrades
Wilmington plc (WIL:LON) | 355 3.6 0.3% | Mkt Cap: 318.0m
- Published:
18 Feb 2021 -
Author:
Iain Daly -
Pages:
9
Given the extremes faced over the last 12 months; these results underline the fundamental strengths of the Wilmington business. The financial headlines revolve around non event related stability and the margin benefits of lower cost to deliver digital event and training formats. The speed at which Wilmington has been able to secure cost savings and react to client demand are the features that stand out from our perspective. Question marks still remain but these revolve primarily around the timing and extent of any face to face recovery and how this will translate into the group margin mix moving forward. For the time being, margins are benefiting at the expense of revenue. A full recovery will see revenue upside and the challenge for the group will be around the extent to which recent margin gains can be protected. The return of the dividend is a welcome sign of optimism and underpins a valuation that looks modest against a peer group that has re-rated significantly despite business mixes that looks less attractive than Wilmington’s