Wilmington PLC Update on COVID-19 Coronavirus Impact and Dividend (4671H)
25 Marzo 2020 - 1:00AM
UK Regulatory
TIDMWIL
RNS Number : 4671H
Wilmington PLC
25 March 2020
25 March 2020
Wilmington plc
('Wilmington', 'the Group' or 'the Company')
Update on COVID-19 Coronavirus Impact and Dividend
Wilmington plc, the provider of data, information, education and
networking events in Risk & Compliance, Healthcare and
Professional knowledge areas, today announces a further update on
the potential impact of COVID-19 ("Coronavirus").
The Group continues to closely monitor the developing situation
regarding Coronavirus and the advice and directives from
governments, the World Health Organisation and other relevant
agencies. The health and safety of our employees, customers and
partners remains the Group's main priority.
Operational Update
All parts of the Group are working remotely, with full
operational capabilities currently being maintained through the
investments in IT infrastructure and digital solutions that the
Group has made over the last few years. Whilst the internal
response has been swift and a testament to the professionalism of
our employees, there is no doubt that the external impacts on parts
of our business are now material. The recent restrictions placed on
the congregation and movement of individuals by governments in
Europe and the US are, by their nature, having an impact on the
Group's ability to run conferences, events and face-to-face
training courses.
Networking events - which typically account for c.15% of annual
Group revenues
Currently the Group has suspended all face-to-face conferences
and events until further notice. We are not planning to run any
face-to-face events prior to 1 July, other than a handful of events
such as RISE Nashville that were originally due to run in March and
where delegates and sponsors are already signed up. These are
currently scheduled to run in late June. We will review the
feasibility of these current plans as the situation develops.
Where possible we are converting elements of postponed events to
run in an online format. There has been demand for such
developments in a number of our communities and we are actively
seeking to support them at this time.
Education and training - which typically accounts for c.40% of
annual Group revenues
The Group has currently suspended all face-to-face training in
Europe, the US and Asia until further notice. The Group has made
significant progress over the last few years enhancing its
capability to deliver a variety of digital learning solutions.
Prior to the outbreak of Coronavirus around a third of Group
training was delivered digitally, often as part of a blended
solution. Demand for this has increased notably over recent weeks,
and the Group is meeting this demand with a range of novel and
innovative solutions.
Information and Data - which typically accounts for c.45% of
annual Group revenues
We are seeing no material impact on demand for data and
information products. 65% of data and information products are sold
via subscription, typically on an annual basis.
In total, the Group currently believes that between GBP12m and
GBP17m of previously anticipated revenue for this financial year is
at risk. The range is primarily dependent on whether the June
events run and the extent to which face-to-face events and training
can be converted to digital variants. Direct and other cost
mitigations, totalling between GBP5.5m and GBP7m, are similarly
anticipated. These adjustments would result in an expected adjusted
PBT for the year ended 30 June 2020 of between GBP8.5m and GBP12m.
Timescales for recovery and overall impacts are impossible to
predict currently, and the Group is therefore suspending all other
formal guidance at this time.
Net debt and dividend
The Board is taking steps at this stage to review cash
commitments, including reviewing all discretionary operating and
capital expenditure. In light of these exceptional circumstances,
the Board has taken the difficult decision to cancel the interim
dividend of 4.2p that was due to be paid on 9 April 2020. The cash
saving of this decision will be GBP3.6m. The Board remains
committed to a resumption of dividends as soon as the trading
environment normalises.
The Group has significant current liquidity, with GBP10m of cash
and undrawn bank facilities of GBP16m. Our cashflow modelling,
including scenarios which assume no face-to-face events or training
from now until the end of August, indicates that the Group would
remain within facility limits. The Board is mindful that events out
of the control of the Company continue to evolve at pace. It is
monitoring the balance sheet carefully and has had proactive and
constructive dialogue with its banks regarding covenant headroom
and facility limits. We will update shareholders accordingly.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement this inside information is now considered to be in the
public domain.
For further information, please contact:
Wilmington plc
Mark Milner, Chief Executive Officer
Richard Amos, Chief Financial Officer 020 7490 0049
FTI Consulting
Charles Palmer / Dwight Burden /
Emma Hall / Leah Dudley 020 3727 1000
Notes to Editors
Wilmington plc is the recognised knowledge leader and partner of
choice for information, education and networking in Risk &
Compliance, Healthcare and Professional areas. Wilmington employs
close to 1,000 people and sells to around 120 countries. Wilmington
is listed on the main market of the London Stock Exchange.
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END
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