Half Year Results for the Six Months Ended 30 June 2014
2014 Strategy of Measured Change Delivers Robust Earnings
Management Outlines Growth Acceleration Plan
Key Highlights
Financial
• Higher organic growth: +1.9% to £569.6m revenue (H1 2013: £564.0m¹)
• Improved adjusted operating profit: +4.5% to £166.7m (H1 2013: £159.5m¹)
• Enhanced adjusted diluted EPS: +6.9% to 20.1p (H1 2013: 18.8p¹)
• Improved statutory profit: £79.5m (H1 2013: £56.4m loss¹)
• Healthy free cash flow: £64.7m (H1 2013: £52.0m¹)
• Net debt reduced: Net debt/EBITDA 2.3 times (H1 2013: 2.4 times)
• Stable interim dividend: maintained at 6.4p (H1 2013: 6.4p)
¹ Restated for the change in accounting for joint ventures (see note 13) and discontinued operations (see note 14).
Operational
• Robust Group trading performance…full-year expectations unchanged despite adverse currency movements
• Strengthened Executive Management…Director of Talent & Transformation – Tom Moloney
• Global Exhibitions acquisition…core vertical expansion in the US through Virgo
• Divisional Operating Structure…new operating structure effective from January 2015
• Investment for growth…£60m – £90m organic investment program over three years
• Business Intelligence restructuring…return to growth targeted by the end of 2016
Stephen A. Carter, Group Chief Executive, said:
“Our strategy of Measured Change has delivered a strong Group Operating performance in the first half of 2014. It has also allowed us to design a Growth Acceleration Plan, including a new Divisional Operating Structure, a strengthened Executive Management team and a program for growth and scale.”
He added:
“We continue to expand organically and by acquisition. Today’s announcement of the purchase of a US exhibition business complements our existing position in the Health & Nutrition market sector through Vitafoods, creating a strong, global Brand proposition in this attractive vertical. It also provides us with an established base on which to build our presence in the important US Exhibitions Sector.”
“In the second phase of our Strategic Review, Informa is focusing on growth opportunities and improving returns across the Group. Further details will be provided in the second half but we anticipate additional investment of up to £90m over three years to deliver on our mid-term organic growth objectives. This will be weighted to the Business Intelligence Division, where we believe the potential for improvement is greatest.”
He concluded:
“We remain disciplined in our approach to the remainder of 2014, retaining operational focus whilst simultaneously taking further steps to reposition the Group to simplify its structure, leverage its scale and deliver future growth.”