Wolters Kluwer release 2016 full-year report – stock rising
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Wolters Kluwer release 2016 full-year report – stock rising

Wolters Kluwer (WK) is a global market leader in “professional information services” (meaning they supply data-driven professions like accountants and lawyers with informational tools and services) – and the latest information they’ve released – their full-year 2016 results – is cause for celebration amongst investors!

The company reported a 3% rise in organic revenues – muted to 2% on a constant currency basis – with a couple of standout performers. Digital and services revenue grew by 5% organically, and now makes up 85% of WK’s total revenue. Likewise, recurring revenues (which now make up 77% of the company’s total) were also up by 4% organically. Unsurprisingly, the company’s share price rose sharply at the end of what was already a good month:

Wolters Kluwer is up a respectable 8% over the last month

wk graph

SOURCE: Yahoo Finance

Other notable statistics include 70 basis point rise in operating margin to 22.1%, a 6% rise in earnings per share (on a constant currency basis), and a 9% increase in free cash flow to €708 million (again, in constant currency).

Speaking about the results, WK’s CEO and chairperson of the executive board, Nancy McKinstry, said:

"I am pleased to report sustained organic growth and a significant improvement in margins and cash flow. Better performance in Europe helped us overcome a challenging comparable in the U.S. We continued to invest in innovation and recent launches are being well-received by our customers. We extended into attractive market adjacencies through selected acquisitions, completed several non-core disposals, and drove further operating efficiencies. We remain focused on executing on our strategic priorities and delivering increased value to customers, employees, and shareholders."

The company expects “mid-single digit growth” in earnings per share for full-year 2017.

Disclosure
Dominion holds Wolters Kluwer in its Global Trends Managed Fund.


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