Euromoney Institutional Investor PLC have issued a pre-close trading update ahead of the announcement of its results for the year to September 30, 2012.
Since issuing its Interim Management Statement on July 25, 2012, trading has continued in line with the board’s expectations. As highlighted in that statement, market conditions became noticeably tougher from June, particularly in Europe. As a result, revenues for the fourth quarter are expected to be broadly in line with the same period last year, with growth in subscriptions offset by weakness in advertising and delegate revenues.
Total revenues for the year to September 30, 2012 are expected to show a headline increase of approximately 9% on 2011. The underlying increase, excluding acquisitions, is expected to be 3%. Exchange rate movements have not had a significant impact on headline or underlying revenues.
Despite the challenging market conditions, the group expects to announce a record adjusted profit before tax* of not less than £105 million for the year to September 30, 2012 (2011: £92.7 million), helped by a reduction in net finance costs following the sharp reduction in the group’s net debt, as well as a lower long-term incentive expense.
At current exchange rates, group net debt at September 30, 2012 is expected to be no more than £40 million, against £88.5 million at March 31, reflecting the group’s strong second half operating cash flows. Movements in the US dollar exchange rate have not had a significant effect on net debt levels.
Next Trading Update
The year end results will be announced on the morning of November 15, 2012, followed by an analyst presentation and investor meetings.
* Adjusted profit before tax is profit before tax, acquired intangible amortisation, accelerated long-term incentive expense, exceptional items, movements in deferred consideration, and non-cash movements in acquisition option commitment values.
- Euromoney Institutional Investor PLC – Interim Management Statement for the period from April 1 to July 24, 2012. Posted on July 26, 2012
- Euromoney Institutional Investor – trading update – half year profits of not less than £47M Posted on April 17, 2012
- A Fusion Deal: International grain trading conferences, Global Grain Geneva and Global Grain Asia, sold to Euromoney Institutional Investor Posted on February 29, 2012
- Euromoney Institutional Investor to acquire Ned Davis Research Group for £69M Posted on June 21, 2011
- Euromoney Institutional Investor PLC acquires Arete Consulting Posted on August 13, 2010
- Euromoney sells EIC to Broadfern September 2007