LONDON (ShareCast) - Half-year pre-tax profits at Wilmington Group fell to 3.7m pounds from 5.1m as its legal education business and healthcare divisions continued to face tough conditions.

The information provider also said Chief Executive Officer Charles Brady had decided to retire but would stay until a successor was in place.

Despite the profits fall, the company said its banking and compliance and pension and insurance information divisions were “enjoying strong organic growth” and that it planned to reinstate its progressive dividend policy.

It added that cash flow was strong going into the second half, and would fund further investment, a growing dividend and debt reduction.

Group revenues for the period increased rose 5% to £43.1m. Adjusted earnings before interest, tax and amortisation (EBITA) were up 15% to £8.2m and the adjusted EBITA margin improved to 19% from 2012’s 17.4%. Adjusted earnings per share were up 14% at 6.2p.

Chairman Mark Asplin said the legal unit, which offers services such as expert witness training, had a tough end to its continuing professional development (CPD) course year and continued to face “challenging market conditions”.

“There have also been strong competitive pressures in our Healthcare division but our prognosis for the medium term is encouraging with new products and potentially new markets opening up for us,” Asplin said.

"Wilmington has had a good start to 2014. Recent acquisitions have been integrated and are contributing to group performance.”

Asplin said Wilmington’s overall trading environment had not changed significantly since its 2013 results announcement.

“Wilmington is a well-balanced business which is increasingly international and, as we move into the second half, our financial performance is on track to support our current expectations for the full year."

The interim dividend increased to 3.6p from 3.5p.

Wilmington shares were down 8p to 247p at 09.53.

FP

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