Full Year Results For the Year Ended 31 December 2012
Key Highlights
Financial
- Record adjusted diluted EPS up 7.7% to 40.7p (2011: 37.8p), ahead of market expectations
- Full year dividend increased by 10.1% - second interim dividend of 12.5p giving a total 2012 dividend of 18.5p (2011: 16.8p)
- Revenue broadly flat despite Robbins Gioia and European Conference disposals - £1.23bn (2011: £1.28bn)
- Adjusted operating profit up 4.0% to £349.7m (2011: £336.2m); organic growth of 2.8%
- Record adjusted operating margin of 28.4% (2011: 26.4%)
- Adjusted profit before tax of £317.4m up 7.3% (2011: £295.9m)
- Statutory profit after tax of £90.7m (2011: £74.3m)
- Strong cash generation - operating cash flow up 5.7% to £329.0m (2011: £311.2m)
- Balance sheet strength maintained - net debt/EBITDA ratio of 2.1 times (2011: 2.1 times)
Operational
- Proactive portfolio management drives significant improvement in the quality of Group earnings
- Total product rationalisation reduced Group revenue by 2%
- Investment in new products, geo-cloning and platform development
- Acquisition of MMPI and Zephyr in 2012 - both performing well
- Long-term contract to manage Agrishow from 2013, the largest agrifoods event in Latin America
- Strong emerging market growth - now 18% of Group revenue (2011: 14%)
- Resilient core revenue stream - 67% of publishing revenues from subscriptions
- Digital excellence - 74% of publishing revenues fully digitised
Peter Rigby, Chief Executive, said:
"Informa has performed strongly once again in 2012, delivering earnings ahead of market expectations and strong cashflow, despite what have remained very challenging market conditions. This is testament to the resilience of our businesses, underpinned by strong brands, leading market positions, digital excellence and a growing presence in emerging markets.
Our performance has enabled us to keep investing in our business, while maintaining our progressive dividend policy, with 10.1% growth in the total payout in 2012, underlining our commitment to delivering attractive returns to our shareholders.
We were very proactive in managing our portfolio in 2012. This was evident through the acquisitions of Zephyr, which bolstered our digital subscription base, and MMPI, which expanded our portfolio of large exhibitions, as well as the disposals of Robbins Gioia and some small European local language Conference businesses. Internally, our focus on operating excellence also led us to proactively exit a number of lower quality publishing products and events, cutting out over £25m of revenue. This has impacted top-line growth trends but leaves the group in a stronger position going forward, with a higher underlying quality of earnings.
The new financial year has started well, with a strong performance from our large events in the Middle East in January, while academic journal subscription renewals have been in line with expectations. Despite ongoing macro uncertainty, we are cautiously optimistic about our prospects for the year ahead, with underlying revenue growth expected across all three divisions, translating into another year of growth in adjusted earnings per share."
Financial Highlights
| 2012 | 2011 | Actual | Organic |
|
| £m | £m | % | % | |
| Revenue | 1,232.5 | 1,275.3 | (3.4) | (2.0) |
| Operating profit | 124.4 | 130.3 | (4.5) | |
| Adjusted operating profit 1 | 349.7 | 336.2 | 4.0 | 2.8 |
| Operating cash flow 2 | 329.0 | 311.2 | 5.7 | |
| Profit before tax | 67.0 | 88.6 | (24.4) | |
| Adjusted profit before tax 1 | 317.4 | 295.9 | 7.3 | |
| Profit after tax | 90.7 | 74.3 | 22.1 | |
| Adjusted profit after tax 1 | 245.6 | 226.7 | 8.3 | |
| Basic earnings per share (p) | 15.1 | 12.5 | 20.8 | |
| Diluted earnings per share (p) | 15.0 | 12.5 | 20.0 | |
| Adjusted diluted earnings per share (p) 1 | 40.7 | 37.8 | 7.7 | |
| Dividend per share (p) | 18.5 | 16.8 | 10.1 | |
| Free cash flow 2 | 237.8 | 203.4 | 16.9 | |
| Net debt 3 | 802.4 | 784.0 | 2.3 |
Notes:
In this document 'organic' refers to numbers adjusted for material acquisitions and disposals and the effects of changes in foreign currency exchange rates.
1 Adjusted results exclude adjusting items as set out in the Consolidated Income Statement and detailed in Note 2.
2 Operating cash flow and free cash flow are as calculated in the Financial Review.
3 Net debt as calculated in Note 12.
Divisional highlights
|
|
2012 |
2011 |
Actual |
Organic |
| £m | £m | % | % | |
| Academic Information (AI) | ||||
| Revenue | 340.3 | 323.6 | 5.2 | 2.4 |
| Adjusted Operating Profit | 126.1 | 116.2 | 8.5 | 4.8 |
| Adjusted Operating Margin (%) | 37.1 | 35.9 | ||
| Professional and Commercial Information (PCI) | ||||
| Revenue | 356.6 | 370.5 | (3.8) | (4.4) |
| Adjusted Operating Profit | 120.7 | 114.0 | 5.9 | 4.6 |
| Adjusted Operating Margin (%) | 33.8 | 30.8 | ||
| Events and Training | ||||
| Revenue | 535.6 | 581.2 | (7.8) | (3.0) |
| Adjusted Operating Profit | 102.9 | 106.0 | (2.9) | (1.4) |
| Adjusted Operating Margin (%) | 19.2 | 18.2 |
Enquiries
Informa PLC
Peter Rigby, Chief Executive
+41 (0) 41 444 1341
Adam Walker, Finance Director
+41 (0) 41 444 1343
Richard Menzies-Gow, Investor Relations
+44 (0) 20 3377 3445
Charles Palmer – FTI Consulting
+44 (0) 20 7269 7112