Last close As at 05/08/2026
GBP2.80
▲ −5.00 (−1.75%)
Market capitalisation
GBP252m
Research: TMT
With November’s purchase of Astutis, January’s sale of MiExact and the proposed Healthcare business disposal, Wilmington is now firmly focused on opportunities within the large global governance, risk and compliance (GRC) market. The group’s significant cash resource should enable further M&A to accelerate growth across the GRC landscape, while investment in technology platforms and AI capabilities improves revenue and operating margin prospects in the core activities. H124 organic revenue growth (continuing business) was up 7%, with a 12% gain in adjusted EPS. FY24 results to June are expected in line with market forecasts. Given the improving quality of earnings we regard the valuation as undemanding.
Wilmington |
Focus on governance, risk and compliance
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20 February 2024 |
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With November’s purchase of Astutis, January’s sale of MiExact and the proposed Healthcare business disposal, Wilmington is now firmly focused on opportunities within the large global governance, risk and compliance (GRC) market. The group’s significant cash resource should enable further M&A to accelerate growth across the GRC landscape, while investment in technology platforms and AI capabilities improves revenue and operating margin prospects in the core activities. H124 organic revenue growth (continuing business) was up 7%, with a 12% gain in adjusted EPS. FY24 results to June are expected in line with market forecasts. Given the improving quality of earnings we regard the valuation as undemanding.
Training & Education the main element
On a pro forma basis (Healthcare discontinued), Training & Education comprised 74% of H124 revenues, with Intelligence the balance. Axco and Pendragon, within Intelligence, are market leaders in insurance and pension respectively, with plenty of opportunity to grow their share of client budget through increased scope and new products. Within Training & Education, the move onto a common technology platform (due to go live in H224) opens up the potential for more sophisticated client solutions, some AI-driven, across the three spheres of regulatory compliance, professional accreditation/continuing professional development and ESG and HR compliance. It should also mean greater operational efficiency.
Cash resource supports M&A appetite
At end December, Wilmington had net cash of £28m, excluding leases, which has since increased to over £40m with cash inflows from subscriptions receipts pushed into January. With a further likely cash injection from the proposed sale of Healthcare, the group has considerable resource to invest. The ‘wish list’ centres on GRC, with areas that need training to meet regulatory requirements particularly attractive. US vendor expectations remain over-inflated given private equity appetites, but there are always opportunities there and globally, with the £16.8m Astutis purchase already demonstrating the added value from cross-selling opportunities in both directions.
Valuation starting to reflect growth potential
Wilmington’s share price is broadly unchanged year to date. Within the peer set, those companies with a strong positioning in data, platform and technology have a clear rating premium. Wilmington’s trajectory in this direction gives strong support to the current rating, with potential for further expansion, subject to future deal flow.
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Consensus estimates
Source: Refinitiv. Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Healthcare
Recce Pharmaceuticals has announced several positive developments in recent weeks relating to its therapeutic programmes, particularly for lead anti-infective candidate RECCE® 327 (R327). It entered a strategic collaboration with an Indonesian biomedical company, PT Etana Biotechnologies (Etana), which may support the engagement of relatively lower-cost clinical trial sites with potentially deep patient pools in South-East Asia (SEA). The company also recently disclosed positive efficacy results among five patients treated in its Phase I/II study of topical R327 in patients with diabetic foot infections (DFI), and it now plans to expand this programme to additional domestic and global sites. We have raised our valuation to reflect the rolling forward of our estimates and reductions in our R&D and SG&A cost projections, following the most recent quarterly cash flow update. We now obtain a risk-adjusted net present value (rNPV) of A$652.6m (or A$3.20/share), versus A$551.1m previously.