Wolters Kluwer Posts Full Year

Dutch publisher Wolters Kluwer posted a top line increase of 9% (0rganic growth of 3%) and an EBITA increase of 16% to €618million for the full year.

Following is are highlights from the company press release:

• Revenues increased 9% to €3,693 million (2005: €3,374 million)
• Organic revenue growth of 3%, in line with full-year outlook
• Ordinary EBITA increased 16% to €618 million (2005: €533 million)
• Ordinary EBITA margin of 17% (2005: 16%)
• Investment in product development reached €272 million (an increase of 9% over 2005)
• Structural cost savings of €128 million (an increase of 28% over 2005)
• Strong free cash flow of €443 million (2005: €351 million)
• Ordinary diluted EPS increased 16% to €1.23 (an increase of 15% at constant currencies)
• Selective acquisitions to strengthen leading positions and enter high-growth adjacent markets

Fourth-Quarter 2006:

• Revenues increased 8% to €1,003 million (2005: €932 million)
• Organic revenue growth of 6% (2005: 3%) Ordinary EBITA increased 17% to €173 million (2005: €148 million)
• Ordinary EBITA margin of 17% (2005: 16%)
• Investment in product development reached €74 million (an increase of 7% over same period 2005)
• Structural cost savings of €37 million (an increase of 32% over same period 2005)
• Strong free cash flow of €204 million (2005: €208 million)
• Ordinary diluted EPS increased 9% to €0.34 (an increase of 15% at constant currencies)

A more detailed review is in the press release. Most of the business units are doing OK with Corporate and Financial Services showing the largest percentage revenue growth. Of Education they say the following:

Organic revenue growth of 2% with particularly strong performance in the United Kingdom following new product introductions. The review of strategic alternatives for Education announced in 2006 is expected to be completed in the first half of 2007.

The company has announced that this group may be sold and the statement seems to indicate that will be completed by the middle of the year.

The company is looking to build on the gains they have made over the past two years to migrate revenue to online, attack their cost structure and reinvigorate product development. Margin improvement was seem 2006 vs 2007 - of 1.0pt - but they are suggesting their EBITA margin will grow from 17% to closer to 20% which is significant progress.