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WPP AUNZ Ltd (ASX: WPP) is an Australia-based communication company. It is into advertising and communication services to clients through a wide network of marketing, production and creative agency firms. The segments of the company include Public Relations & Public Affairs, Adverting and Media Investment Management, Data Investment Management and Specialist Communications. It provides advertising, communication, public relations, and marketing solutions for diversified media channels that includes digital, electronic, outdoor, print and radio.Â
The company today on 22 February 2019, released the presentation for full year FY18. Letâs have a look at the operating and financial review by the company for FY18. Net sales for the year ended 31 December 2018 was $857.3 million, down by 1.4% compared to the prior corresponding period (pcp). The net loss attributable to members for the year ended 31 December 2018 was $17.1 million compared to a net profit of $73.3 million in 2017, representing a decline of 123.3%.
On the debt front, the company renewed the syndicated debt facility agreement on 26 June 2018. The facility agreement is split between a debt facility of $520.0 million compared to $520.0 million in FY17, and a guarantee facility of $29.9 million compared to $29.9 million in FY17. $370 million of the debt facility and the guarantee facility will expire on 29 June 2021. The remaining $150.0 million of the debt facility expires on 29 June 2019 and is used to support intra-month working capital movements.
As of 31 December 2018, the cash balance of the company stood at $63.5 million compared to $111.2 million in FY17. The gross debt, finance lease liabilities and earnout liabilities were $333.8 million in FY 2018 compared to $361.2 million in FY17. The company's net debt position increased to $270.3 million at 31 December 2018 compared to $250.0 million in FY17, owing to the decrease in the cash balance.
The cash of the company decreased by $47.7 million to $63.5 million at 31 December 2018. The cash inflows from operating activities were $94.0 million in FY18 as compared to $128.6 million in FY17. The cash inflow was lower in 2018 primarily due to tax payments of $53.9 million made during the year (2017: tax refund of $8.6 million). The cash outflow from investing and financing stood at $50.9 million and $88.5 million respectively.
The total dividend payments relating to 2018 was $53.6 million. This represents a dividend pay-out ratio of 75% of headline net profit after tax. The Directors have declared the payment of a fully franked ordinary dividend of 4.0 cents per fully paid ordinary share, with a record date of 29 March 2019 and payable on 5 April 2019.
On the price-performance front, the stock of WPP AUNZ Ltd last traded at $0.550 with an increase of 2.804% during the dayâs trade and with a market capitalisation of circa $455.9 million. The stock has generated a negative YTD return of 6.14% and posted negative returns of 40.56%, 10.83% and 1.83% over the last six months, three months and one-month period respectively. The stock has a 52-week high price of $1.085 and a 52-week low price of $0.460 with an average trading volume of 258,548. It is trading at PE multiple of 6.860x with an EPS of AUD 0.078 and with an annual dividend yield of 12.15%.
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