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Informa's Half Year Results for the Six Months Ended 30 June 2012

25 Jul 2012 08:00

Key Highlights

Financial

  • Resilient profit performance – adjusted operating profit growth of 0.6% to £160.1m; 0.3% on an organic basis
  • Improved margin – adjusted operating margin 25.8% (H1 2011: 25.1%)
  • Strong cash flow – cash conversion rate increased to 76% (H1 2011: 56%)
  • Revenue decline of 2.4% (organic decline of 1.2%) – proactive reduction in marginal product.
  • Statutory loss before tax of £27.4m (H1 2011: £66.5m profit) – reflecting impairment charge of £80.0m and losses on disposal of £24.4m relating to European Conference businesses. 
  • Earnings increased – adjusted diluted earnings per share growth of 3.4% to 18.3p (H1 2011: 17.7p)
  • Dividend increased – interim dividend increased to 6.0p (H1 2011: 5.0p)
  • Net debt/EBITDA ratio of 2.3 times (H1 2011: 2.5 times)

Operational

  • Academic division continues to trade well – organic revenue growth of 3.7%
  • Total cost savings delivered at PCI of £12m
  • 9 new large events run in H1
  • Forward bookings on leading events remains strong
  • Restructure of conference portfolio to reflect prevailing market conditions in Europe
  • 20% of revenue from emerging markets (H1 2011: 19%)
  • Acquisition of market leading exhibition and conference business in Canada

Financial Highlights

  H1 2012 H1 2011 Actual Organic
  £m £m % %
Revenue 619.6 634.8 (2.4) (1.2)
EBITDA² 172.7 170.4    
Operating Profit 11.0 87.9    
Adjusted Operating Profit¹ 160.1 159.1 0.6 0.3
Operating cash flow² 121.1 88.7    
(Loss)/profit before tax¹ (27.4) 66.5    
Adjusted profit before tax¹ 142.8 139.1    
(Loss)/profit for period (41.9) 55.2    
Adjusted profit for period¹ 110.1 106.4    
Basic (loss)/earnings per share (p) (7.0) 9.2    
Diluted (loss)/earnings per share (p) (7.0) 9.2    
Adjusted diluted earnings per share (p)¹ 18.3 17.7    
Dividend per share (p) 6.0 5.0    
Free cash flow² 76.2 54.1    
Net debt3 844.8 877.7    

Notes:

In this document 'organic' refers to results adjusted for material acquisitions and disposals and the effects of changes in foreign currency exchange rates.  In this Business Review we refer to adjusted and statutory results. Adjusted results are prepared to provide a useful alternative measure to explain the Group's underlying business performance.

  1. Adjusted results exclude adjusting items as set out in the Condensed Consolidated Income Statement and detailed in note 3.
  2. EBITDA, operating cash flow and free cash flow are as calculated in the Business Review.
  3. Net debt as calculated in note 11.

Full Interim Announcement

Commenting on the first half results and future prospects, Peter Rigby, Chief Executive, said:

"Overall, we have made a solid start to the year and are pleased with our performance to date. 

With our flat structure, experienced local management and focus on operating profit we continue to deliver good financial performance and earnings growth.  In addition, high cash flow conversion continues to support our progressive dividend policy.  Global economic conditions show no signs of sustained improvement.  We have become used to operating in this environment and are actively managing the portfolio to concentrate on our areas of strategic focus. The business is in better shape as a result and we are well positioned for growth when an economic recovery occurs.    

We are encouraged by the product launches coming in the second half of the year as well as our recent Canadian acquisition.  We are making good progress on a number of growth initiatives including geographic expansion, across Informa which gives the Board confidence in meeting its expectations for the full year and the Group's future prospects."

Enquiries

Informa PLC

Adam Walker, Finance Director
+41 (0) 41 444 1343

James Gareh, Investor Relations
+44 (0) 78 341 92961

FTI Consulting

Charles Palmer
+44 (0) 20 7269 7112

Analyst Presentation

There was a webcast presentation to analysts with full Q&A at 9.30am BST on 25 July 2012. The webcast is now available on [link removed: 16/05/16]

Note to Editors

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