Fusion Corporate Partners

Informa has announced its half year results for the Six Months Ended 30 June 2012

Financial Highlights

• 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 Highlights 

• Academic – 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%)

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.”

UK, London

Related articles:

• A Fusion Deal: Fertilizer market information and analysis business Fertecon sold to Informa Group Posted on February 28, 2012
• Informa acquires Brasil Trade Shows Partners Participacoes S.A. & Ibratexpo Feiras e Eventos Ltda Posted on June 14, 2011