WHK's 'solid' performance amid mixed results
Accounting business WHK has delivered a "solid" fiscal performance for 2011 despite reporting a decline on a number of fronts, including revenue and cash earnings per share, according to full year results released to the Australian Securities Exchange.
The WHK Fiscal 2011 Full Year Results recorded revenue of $406.1 million - down from $413 million in the previous financial year, representing a 2 per cent decline.
The recorded revenue represents both WHK's Australian and New Zealand ventures, which were either flat or down by 11 per cent, respectively.
Also in decline, cash earnings per share went from 9.8 cents in 2010 to 92 cents in the year ending June 2011 (down 9 per cent), while operating cash flow was down 26 per cent to 35.6 million - a sharp drop from $47.8 million in the 2010 fiscal year.
WHK pointed to the natural disasters that impacted New Zealand as a factor in the challenging business conditions faced by the company.
But according to WHK, operating cash flows are strong, having remained higher than the $32.8 million levels recorded in 2009.
In a positive result for the accounting firm, Australian business services revenue was up 1 per cent, while expenses and overheads combined were down 1 per cent.
Net debt also declined, falling from $40 million in 2010 to $31.5 million in 2011.
WHK Managing Director John Lombard said while strong cash flow and cost control point to solid management, the focus is on organic revenue growth.
"We have a strong foundation to drive the next phase of organic growth by leveraging our scale and enhancing value to our clients," Lombard said.
"We are seeking to establish a business that will support medium term double-digit revenue growth."
While the business is structuring to reward performance in alignment with organic revenue growth, a new shared services model for support functions will be introduced this year to boost efficiency and cut costs, WHK said.
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