Transformation continues to be the order of the day at Dutch publishing and information services company Wolters Kluwer, although half-yearly results have not quite reached analysts expectations.

Revenues for the six months to 30 June 2006 were €1,770 million, a 12 per cent increase over the first half of 2005 (€1,580 million).

The company recorded a 13 per cent yr-on-yr increase in product development spending (€126 million), while structural cost savings increased 23% to €58 million. It said it had strong free cash flow in the first half of €79 million, compared with €23 million in H1 2005.

Chairman of the executive board, Nancy McKinstry, a US national who has headed the company's five year transformation and restructuring programme, was characteristically upbeat.

"With half-year results in line with our expectations, plus strong organic growth in the Corporate & Financial Services division and Tax and Accounting unit, and steady cost and process improvements, we continue to benefit from the strategic roadmap we set in place two and a half years ago," she said.

"Innovative electronic products and software, solid acquisitions, and strong market knowledge are driving our transformation and delivering greater value for our customers, and therefore our shareholders. As we move into the next two quarters, we are confident that we are on track to achieve the objectives of our three-year strategy."

Wolters Kluwer experienced variable fortunes in its five divisions, with growth driven by acquisitions in its Health division (Pharma Solutions acquired NDCHealth in August 2005) and its Tax, Accounting & Legal division, which serves the North American market.

It said its Legal Tax and Regulatory Europe division had made "steady progress" with Italy, Spain and Central Europe performing well, "boosted by investments in online and electronic products and strong online revenue growth".

Restructuring and cost-savings in its more established European territories has produced benefits, it said. "The effects of restructuring in the Netherlands and Belgium show positive results, with restructuring in the UK still underway."

Financial press response was initially muted, with Reuters saying it had missed analysts forecasts and Hemscott reporting "Q2 EBITA pre-ex shy of expectations" .