Wolters Kluwer 2004 Full-Year Results: TOP-LINE GROWTH RESTORED

 | Source: Wolters Kluwer N.V. Wolters Kluwer N.V.

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.
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    The full press release including tables can be downloaded from the following link:

    Pièces jointes

    PDF version of press release