Earlier this week Wolters Kluwer reported their first half results. Revenues were up 12% and EBITDA up 9%. Organic growth was up only 2% but they believe this is consistent with their full year plans. After a few years of management disarray, the company is now in the midst of a 3 year strategic plan executed by Nancy McKinstry who has been Chairman for a number of years now which has leant some degree of stability to the organization. The company also commented that they continue to invest in new products with development spending up 13% over the same period last year.
WK has five operating divisions: Health, Corporate and Financial Services, Tax, Accounting and Legal, TAL Europe and Education. Full year the company expect to exceed their organic growth target of 2%, hit a 16% operating margin versus a target of 17% (due to higher product development and sales and marketing expenses) and cash flow will be on target. Acquisitions made (and presumably planned) will be dilutive with EPS down 10% versus target. Here is their financial presentation.
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