I think there are more positives than negatives in the preliminary report. Results were slightly ahead of guidance issued in May and dividend is consistent with the previous year. Most interest is in the change of role for Wayne Sidwell who dropping his executive position. However, his large shareholding and position of chairman will ensure continued stewardship. In terms of executive succession there is an excellent management culture and I have no doubts this will be a seamless transition. The payout ratio is higher but supported by a positive outlook based on recent trading.
Good to see the US metrics starting to meet expectations. The UK, which has a lesser impact, is a bit more resistant. But its early days and barely a surprise given the UK's political impact on confidence in the last 12 months. Those of us who have followed Wellcom over the long term will recognise similar periods as flat spots, not turning points. The shares can be very difficult to acquire when they are in demand so times like this have usually provided the best entry points. All things being equal I will be expecting meaningful growth in the current year.
WLL Price at posting:
$4.46 Sentiment: Buy Disclosure: Held
