AMSTERDAM, The Netherlands, March 2, 2005 (PRIMEZONE) -- Wolters Kluwer, one of the world's leading publishers and providers of information products and services, announced today that it exceeded all of its operating and financial targets for 2004, including restoring organic top-line growth to a positive 1%, indicating a significant improvement on the previous year.Highlights of Wolters Kluwer's performance include:
-- Top-line growth restored; achieved 1% in 2004, a 3 percentage point improvement compared to -2% in 2003
-- Majority of the businesses growing well and showing good
performance, despite product line pruning and weak economic
conditions in Europe;
-- Growth fueled by strong online and software revenues, with
good subscription renewal performance;
-- Investment in product development of 220 million builds
momentum for stronger growth performance in 2005.
-- Met or exceeded all key operational targets
-- Structural cost savings ahead of schedule (70 million for the
full year, compared with an original 40 million target);
reduction of FTEs was 1,245 against a three-year target
of 1,600;
-- Margins maintained at 16%; ordinary EBITA 521 million; EBITA
margin 15%;
-- Strong free cash flow of 456 million, compared with 393
million for 2003.
-- Reorganization to customer facing units completed
-- Streamlined, operationally focused organization;
-- Strong emphasis on marketing and sales;
-- Progress on shared services initiatives will drive future
efficiencies.
-- Guidance for 2007 increased to 4% organic growth; target for 2005 is 1-2% growth
Nancy McKinstry, Chairman of the Executive Board, commented on the Company's performance over 2004:
"I am delighted to report that top-line growth was restored to Wolters Kluwer in 2004, marking a significant improvement compared to the previous year. This first year of our three-year plan has established the groundwork necessary to leverage and sustain this early success. Operationally and financially we are a stronger, more vital company than we were a year ago.
"Strong growth was delivered by several businesses, most notably Tax and Accounting, Corporate Legal Services, Italy, Spain, Central Europe, France, and in Health's Pharma Solutions and Professional & Education units. I have confidence in the investments we have made this year, and I am encouraged to see the good progress we have made in driving our top-line growth."
Outlook 2005 (in constant currencies):
-- Organic top-line growth of 1-2%, after approx. 20 million product-line pruning
-- Operating margins of 15-16%, before restructuring charges of approximately 10 million
-- Cash conversion ratio of 95-105%
-- Free cash flow of approximately 250 million
-- Return on invested capital of 6-7%
-- Ordinary earnings per share (EPS) of 0.92 -- 1.01, including the impact of IFRS treatment on financing costs of 15 million
-- Cost savings upgraded to 80 -- 90 million for 2005; long-term target 100 -- 110 million
Key business highlights, reflecting the progress made in the first year of the three-year strategy:
-- Health: Strong year with good growth in core publishing, expansion and enhancement of online revenues via the Ovid platform, and growth in the pharmaceutical information market;
-- Corporate & Financial Services: Good year with organic growth largely driven by Corporate Legal Services and a strong performance in the second half of 2004 at Financial Services;
-- Tax, Accounting & Legal: Tax and Accounting had good organic growth allowing the division to achieve level top-line performance with the prior year, despite significant product-line pruning in the Legal unit;
-- Legal, Tax & Regulatory Europe: In line with expectations, strong growth in Italy, Spain, Central Europe, and France; Significant progress made in restructuring Belgium, the Netherlands, and the United Kingdom;
-- Education: Achieved organic growth despite difficult market conditions. Strong performance in secondary education in the Netherlands.
The full press release including tables can be downloaded from the following link:
http://hugin.info/130682/R/982844/146198.pdf
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