Castlefield Stock Story - Wilmington
At Castlefield we really like companies which operate in Governance, Risk and Compliance (GRC) markets. From a business perspective, GRC services offer important societal benefits and are a “must-have” for companies operating in a regulated environment. In this Castlefield stock feature, David Gorman introduces Wilmington PLC, at the forefront of developments in GRC markets.
One company at the forefront of developments in GRC markets is Wilmington PLC, whose shares we own in our CFP Castlefield Thoughtful UK Smaller Companies Fund. The company began its PLC life in 1995 as a specialist publisher, first becoming involved in the compliance industry in 2001. The present Chief Executive, Mark Milner, took office in 2019 and, especially since a strategic review in 2021, has really driven the company forward.
Wilmington provides critical data and information to help its customers remain compliant with all the statutory rules and regulations that apply to them. The company also provides training to equip customers with the knowledge and skills to carry out their activities in line with industry best practice. Wilmington’s customers operate within a complex array of legal, political, and regulatory frameworks, all governed by the ever-evolving compliance landscape. The company operates in markets such as Financial Services (including retail banking, investment banking, insurance and pensions); Legal services (especially law for non-lawyers, including Expert Witness training); plus Health, Safety and Environment training.
Larger corporate clients include Network Rail, Openreach and the World Bank. Wilmington helps household name companies like these to respond to emerging areas of regulatory risk via a range of solutions delivered via a single technology platform. The company delivers its training via the latest technology and award-winning customer service is central to the Wilmington offering. For example, its Astutis Health, Safety and Environmental training provider has just won the Feefo Platinum Service Award for the third year in a row - an award that signifies outstanding excellence in customer service in businesses. The Feefo Platinum Award is a monumental achievement and is only given to businesses that maintain Gold standard recognition for three consecutive years.[1]
Wilmington’s end markets are supported by strong macro factors, particularly the increasing volume and enforcement of regulation, complex geopolitical landscape, increased importance of ESG and widespread adoption of technological and data-driven compliance solutions.
Supplementing its impressive organic growth in sales and profits, Wilmington has also grown by acquisition, bringing in businesses which operate in complementary areas and which can add something to the group. The most recent purchase was Phoenix Health & Safety, a leading international provider of health and safety professional training qualifications, based in Staffordshire. The directors of Wilmington are always on the lookout for more earnings-enhancing deals such as this one and they have a great track record with acquisitions.
The company’s recent interim results were pleasing and featured with a reported 16% revenue growth from ongoing businesses and excellent cash generation, with £31.3m in net cash on the balance sheet[2], some of which we expect to be deployed in further sensible acquisitions.
Written by David Gorman
Information is accurate as at 24.02.2025. Opinions constitute the fund manager’s judgement as of this date and are subject to change without warning. The officers, employees and agents of CIP may have positions in any securities mentioned herein. This material may not be distributed, published or reproduced in whole or in part. With investment, capital is at risk.