UBM 2011 results

February 28, 2012 — Fusion DigiNet

UBM plc has reported 2011 results.

Highlights

  • Revenues up 9.3% to £972.3m – underlying revenue(a) growth of 7.9%
  • Adjusted operating profit up 17.5% at £201.9m
  • Margin up to 20.8% from 19.3%
  • Fully diluted adjusted EPS up to a record of 56.8p, 6.6p (13.1%) up on 2010
  • Full year dividend up to a record of 26.3p, (2010: 25.0p)
  • Cash generation from operating activities up 31.7% to £203.7m (100.7% cash conversion)
  • Events profits up 44.6% to £135.2m, 62.5% of total excluding corporate costs
  • Emerging Markets revenues up 24.4% to £207.1m
  • Emerging Markets operating profit up 33.4% to £65.6m representing 30.4% of total
  • £71.2m invested in eight acquisitions
  • Debt profile improved with maturities extended, net debt of 2.4x EBITDA

David Levin, UBM’s Chief Executive Officer, commented:  “2011 has been a strong year for UBM, with EPS up over 13% to a record 56.8p.  An outstanding performance from our Q4 biennial events capped off a year of consistent delivery in which all our businesses met or exceeded their targets for the year. On the back of these results, the Board has declared a final dividend of 20p, up 1p over 2010, resulting in a record dividend for the year.”

“These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities.  Our Emerging Markets revenues grew by more than 24% during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45%. The solid performance of Data Services and PR Newswire in 2011 reflects the initial benefits of our continuing investment in these businesses. Our Marketing Services businesses also continue to develop well, with the combined effects of continuing strong digital growth and print disposals likely to result in online revenues outstripping print revenues in 2012.”

“2012 trading has started well. We anticipate continued underlying growth and a positive performance across the business whilst recognising the continuing uncertainties of the global economy.”

Business performance

Full Year 2011

Full Year 2010

Change %

Change at CC

%

Underlying Change %
Revenue

£972.3m

£889.2m

9.3

11.3

7.9
Adjusted operating profit

£201.9m

£171.8m

17.5

19.8

2.3
Adjusted operating profit margin

20.8%

19.3%

1.5%pts

 

 
EBITDA

£218.7m

£188.2m

16.2

 

Adjusted PBT

£177.4m

£156.4m

13.4

 

 
Adjusted EPS

Fully diluted adjusted EPS

57.8p

56.8p

51.0p

50.2p

13.3

13.1

 

 
Dividend per share

26.3p

25.0p

5.2

 

 
Cash generated from Operations

£203.7m

£154.7m

31.7

 

 

 

 
IFRS Statutory results (£m)

Full Year
2011

Full Year
2010

Change
%
Revenue

972.3

889.2

9.3
Operating profit

155.4

132.3

17.5
Profit after tax

86.1

99.4

(13.4)
EPS (p)

31.1

37.3

(16.6)
Net Debt

526.4

484.6

 

 

 

  

Operational Highlights

Segmental results

 

Full Year

Full Year

Change

Change at CC

Underlying Change
£m

2011

2010

%

%

%
Revenue

Events

396.9

310.0

28.0

30.8

14.6
PR Newswire

187.8

181.2

3.6

6.6

4.2
Data Services

187.0

184.7

1.2

2.3

3.0
Marketing Services – Online

88.5

69.2

27.9

31.7

16.4
Marketing Services – Print

112.1

144.1

(22.2)

(22.0)

(4.6)
Total Revenue

972.3

889.2

9.3

11.3

7.9
 

 

 

 
Adjusted Operating Profit

 

 

 
Events

135.2

93.5

44.6

47.9

 
PR Newswire

41.0

42.1

(2.6)

0.2

 
Data Services

30.3

34.1

(11.1)

(11.1)

 
Marketing Services – Online

3.6

1.3

176.9

200.0

 
Marketing Services – Print

6.1

10.0

(39.0)

(40.2)

 
Net corporate costs

(14.3)

(9.2)

(55.4)

(55.4)

 
Total Adjusted Operating Profit

201.9

171.8

17.5

19.8

 
 

 

 

 

 

 
Adjusted Operating Profit Margin          
Events

34.1%

30.2%

3.9%pts

  
PR Newswire

21.8%

23.2%

(1.4)%pts

  
Data Services

16.2%

18.5%

(2.3)%pts

  
Marketing Services – Online

4.1%

1.9%

2.2%pts

  
Marketing Services – Print

5.4%

6.9%

(1.5)%pts

  
Total Adjusted Operating Profit Margin      

20.8%

19.3%

1.5%pts

 

 

Read the full announcement

UK, London

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UBM acquires four tradeshows

February 28, 2012 — Fusion DigiNet

 

 

UBM plc has acquired outright, or majority equity stakes in, the following four tradeshows for a total cash consideration of £19.4m and deferred consideration of up to £4.4m. In 2011 these tradeshows generated aggregate revenues of approximately £8.5m:

  • Malaysian International Furniture Fair (MIFF)
  • China International Exhibition & Symposium on Dental Equipment, Technology & Products (DenTech China)
  • Renewable Energy India Expo
  • Airport Cities Exhibition & Conference (ACE)

Malaysian International Furniture Fair – UBM plc has acquired outright the MIFF exhibition on behalf of UBM Asia from its private owners. Founded in 1995, MIFF is an export-oriented furniture tradeshow which is held annually in Kuala Lumpur. The exhibition focuses on office furniture, home furniture and wood furniture, alongside fittings to furnishing materials. The acquisition of MIFF enhances UBM’s strong position in the furniture exhibition market, complementing Furniture China in Shanghai, the Index fairs in India and Interiors in the UK. Over 400 exhibitors attended the 2011 MIFF event, occupying over 30,000 net square metres and attracting over 20,000 visitors, more than 40% of whom were from overseas. MIFF’s founder will remain with the business following its acquisition, together with a further 16 employees. In 2011 the event generated revenues of approximately RM 20m (£4.1m). The business’s gross assets as at 30 November 2011 were £5.4m.

DenTech China – UBM plc has signed an agreement to acquire a 70% equity stake in Shanghai UBM ShowStar Exhibition Co. Ltd., a newly formed joint venture which owns DenTech China, China’s leading dental industry exhibition, from its private owners. The fifteenth edition of Dentech was held in October 2011 in Shanghai. The event attracted over 500 exhibitors, who occupied approximately 12,000 net square metres. The event drew 65,000 visitors, primarily dental professionals, approximately 10% of whom came from overseas. A symposium was held alongside the exhibition, attracting over 2,600 delegates. Based in Shanghai, the business employs five staff. In 2011 the business generated revenues of approximately £2.3m. The business’s gross assets as at 31 August 2011 were £2.3m. The transaction is subject to regulatory approval and is expected to close within the next month.

Renewable Energy India – UBM plc has signed an agreement to acquire the Renewable Energy India exhibition – India’s leading event in this sector – from the Exhibitions India Group on behalf of UBM Asia. Launched in 2006, Renewable Energy India is an annual exhibition which focuses on non-depleting and environmentally-friendly renewable energy sources such as solar (65% of exhibitors), wind (30% of exhibitors), biomass, hydro, co-generation and geothermal. The 2011 show was held in August in New Delhi, attracting 527 exhibitors from 33 countries and occupying over 10,000 net square metres, with over 14,000 trade visitors and conference delegates. UBM stages similar events in Bangkok and

Kuala Lumpur: Renewable Energy Asia is held in co-operation with the Ministry of Energy of Thailand, attracting visitors from across the ASEAN region; the Green Energy exhibition in Kuala Lumpur is hosted by Tenaga Nasional, the largest power company in South East Asia. Renewable Energy India’s founder will remain with the business as a consultant for a period of three years, together with four employees based in New Delhi. In 2011 Renewable Energy India generated revenues of approximately £1.4m. As at 12 December 2011 the business’s gross assets of the acquired business were £0.1m. (See also separate DigiNet article on this acquisition here).

Airport Cities Expo – UBM plc has acquired Insight Media Limited, which owns the Airport Cities World Exhibition & Conference, from its private owners on behalf of UBM Aviation. UBM acquired 25% of Insight Media Limited in August 2010 as part of its acquisition of the Route Development Group. This transaction brings the remaining 75% of the company’s equity into UBM ownership. ACE is a peripatetic annual event which focuses on airport commercial activities and land use, the development of Airport Cities and the associated urban planning issues. The 2011 event was held in Memphis, TN and attracted over 600 delegates, 50 exhibitors and 32 sponsors. The 2012 event will take place in Denver on 25-27 April. The event’s Managing Director and team of four staff will join UBM Aviation as employees. In 2011 the event generated revenues of approximately £0.7m. As at 31 August 2011 the gross assets of the acquired business were £0.1m.

These acquisitions are expected to exceed UBM’s cost of capital criterion in the first full year of ownership.

David Levin, Chief Executive Officer of UBM plc said: “These acquisitions build on our well-established strategy of acquiring strong events that serve structurally growing markets and communities, and particularly events which operate in growth economies. We see attractive growth prospects for each of these events and look forward to those prospects being enhanced as they join the UBM family of events.”

UK, London & Malaysia, Kuala Lumpur & China, Shanghai & India, New Delhi & USA, Denver, CO

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UBM acquires Renewable Energy India

February 28, 2012 — Fusion DigiNet
UBM plc has acquired Renewable Energy India exhibition on behalf of UBM Asia from the Exhibitions India Pvt Ltd.

Renewable Energy India is an annual exhibition held in New Delhi to serve the Indian renewable energy market. It focuses on non-depleting and environmentally-friendly renewable energy sources such as solar, wind, biomass, hydro, cogeneration and geothermal. Launched in 2007, the 2011 event held from August 10 -12 spanned over 10,000 square metres of net exhibition space, attracting 527 exhibitors from 33 countries and over 16,000 trade visitors and conference delegates. In 2011 it generated revenues of approximately US$2.3m.

The demand for electricity in India is estimated to grow at an annual rate of 8%, driving heavy investment on developing renewable energy. Riding on these robust potentials, UBM’s experience in staging similar events in Asia will help to grow Renewable Energy India further. Renewable Energy Asia in Bangkok is held in co-operation with the Ministry of Energy ofThailand and attracts visitors from across the ASEAN region. The Green Energy exhibition in Kuala Lumpur is hosted by Tenaga Nasional, the largest power company in South-East Asia.

The event’s founder, Prem Behl, will remain with the business as a consultant. Mr Rajneesh Khattar, President – Renewable Energy India and the Renewable Energy team of four staff will be incorporated into UBM India New Delhi office, reporting toSanjeev Khaira, Managing Director of UBM India.

Jime Essink, President and Chief Executive Officer of UBM Asia said: “This acquisition proves again the commitment of UBM to further strengthen our leading position in India and we welcome Rajneesh and the Renewable Energy India team to the big UBM family.”

Renewable Energy India 2012 is scheduled to be held from 7 – 9 November 2012 at the India Expo Centre & Mart, Greater Noida (National Capital Region).

Hong Kong & India, New Delhi

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72% rise in profits at Pearson

February 28, 2012 — Fusion DigiNet

Pearson Plc has reported 2011 Preliminary results.

 

Financial performance

  • Sales up 6% at CER in spite of tough trading conditions in many markets.
  • Adjusted operating profit up 12% to £942m with growth in all businesses.
  • Adjusted EPS up 12% to 86.5p (headline growth).
  • Cash conversion remains strong at 104%; operating cash flow of £983m (£1,057m in 2010, which benefited from an unusually high working capital contribution).
  • Return on invested capital of 9.1%, above Pearson’s cost of capital; ROIC lower than in 2010 largely due to significant acquisition spend and higher cash tax.

Growth markets

Digital revenues up 18% in headline terms to £2bn, now 33% of Pearson’s sales. Substantial digital growth in all parts of Pearson including:

  • Students using digital learning programmes up 23% to 43m.
  • Penguin eBook revenues up 106%; now 12% of total Penguin revenues.
  • FT digital subscriptions up 29% to 267,000; approximately 44% of total paid circulation.

Developing markets revenues up 24% in headline terms to $1bn ($834m in 2010), now 11% of Pearson’s sales.

Other highlights

  •  Operating margins reach 16.1% (up 1.0% points)
  • £896m invested in acquisitions including Schoolnet and Connections Education in North America and Global Education in China.
  • Balance sheet net debt of £499m – approximately £1bn of headroom available for bolt-on acquisitions.
  • Dividend raised 9% to 42.0p, representing Pearson’s 20th consecutive dividend increase.

Outlook

  • Pearson expects to achieve continued sales and operating profit growth in 2012, in spite of tough trading conditions and rapid industry change.
  • Revenues from digital and services businesses expected to exceed revenues from traditional publishing businesses in 2012.

Marjorie Scardino, chief executive, said: “The external environment provides a testing backdrop for these results, and all our industries face some degree of turbulence. But our strategy and long-term planning for change have helped us to another good year to add to our record of persistent out-performance. We believe those qualities, combined with the commitment and innovation of our people, will continue to serve our customers and our shareholders well.”

Financial summary

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Business performance
Sales

5,862

5,663

4%

6%

1%
Adjusted operating profit*

942

857

10%

12%

7%
Adjusted earnings per share

86.5p

77.5p

12%

Operating cash flow

983

1,057

(7)%

Free cash flow

772

904

(15)%

Free cash flow per share

96.5p

112.8p

(14)%

Return on invested capital

9.1%

10.3%

(1.2)% pts

Net Debt

499

430

(16)%

Statutory results
Sales

5,862

5,663

4%

Operating profit

1,226

743

65%

Profit before tax

1,155

670

72%

Basic earnings per share

119.6p

161.9p

(26)%

Cash generated from operations

1,093

1,169

(7)%

Dividend per share

42.0p

38.7p

9%

* Continuing operations

Divisional analysis

£ millions

2011

2010

Headline growth

CER growth

Underlying growth
Sales
North American Education

2,584

2,640

(2)%

1%

(1)%
International Education

1,424

1,234

15%

15%

4%
Professional

382

333

15%

17%

2%
FT Group

427

403

6%

8%

7%
Penguin

1,045

1,053

(1)%

1%

1%
Total

5,862

5,663

4%

6%

1%
Adjusted operating profit
North American Education

493

469

5%

9%

8%
International Education

196

171

15%

13%

2%
Professional

66

51

29%

31%

10%
FT Group

76

60

27%

22%

17%
Penguin

111

106

5%

8%

8%
Total continuing

942

857

10%

12%

7%

Read the full announcement

UK, London

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Centaur Media acquires Profile Group

February 21, 2012 — Fusion DigiNet

Centaur Media plc, the business information and events group, has acquired Profile Group (UK) Limited, a specialist digital information business for media, PR and marketing professionals, for a total cash consideration of £8m. Profile was founded in 1988 as a print directory business by Robert Barclay.  The management team will be staying with the business.  Revenues in 2011 were £3.1m, with ebitda of £1m, producing a margin of 32%.  The business derives most of its revenues in the UK, but has now launched three of its services in the USA, with encouraging early success.

Centaur has separately secured a £40m four year revolving credit facility in order to fund its acquisition programme.

Profile provides forward planning and contact information to media, PR and marketing professionals to enable them to optimise journalistic workflow and plan future PR and sponsorship campaigns.  Revenues are derived exclusively from subscriptions to a range of digital products which offer complementary services from a single web platform.  Profile’s information brands include Fashion Monitor, Red Pages, Entertainment News, Year Ahead and Foresight News.

Profile will become part of the Business Information Division, alongside digital information and workflow businesses Perfect Information (serving the global corporate adviser market) and VBR (operating in the global clean technology and security sectors).

Profile will benefit from collaboration with Centaur’s existing brands, Marketing Week and Creative Review (serving the marketing and creative agency sectors) and the Headline Group (serving specialist media and PR professionals).

Geoff Wilmot, CEO of Centaur, said, “Profile is a good fit with our core strategic objectives of growing digital subscription revenues in our core markets and expanding our international capabilities. We will accelerate Profile’s growth by: offering an exceptional route to market through our leading brands Marketing Week and Creative Review; the application of the successful Headline Group model to vertical markets served by Profile; and by leverage of Profile’s technology and business model in other parts of the Group. The new revolving credit facility will fund this acquisition and provides us with the necessary resources to support our acquisitions programme.”

UK, London

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Guardian News & Media sell paidContent to GigaOM

February 8, 2012 — Fusion DigiNet

Guardian News & Media has sold the assets of ContentNext Media, to business and technology media company GigaOM. The deal includes all the properties of ContentNext Media including paidContent.org, mocoNews, contentSutra and paidContent:UK. The terms of the deal have not been disclosed.

Under the terms of the acquisition, GNM will take a minority shareholding in GigaOM. GigaOM has an online audience of more than 4.5 million monthly unique visitors. It also runs events and a market research service and digital community providing expert analysis and research on emerging technology markets. GNM is joining existing investors such as Reed Elsevier Ventures, Alloy Ventures and True Ventures.

Andrew Miller, Chief Executive Officer of Guardian Media Group (parent company of Guardian News & Media), said: “paidContent has a fantastic presence in the tech/media space and the match with GigaOM, itself a really smart and pioneering company, is a good one. We are delighted to become shareholders in GigaOM as part of the deal.

“The Guardian’s focus in the US is on building guardiannews.com, but we look forward to seeing paidContent thrive and grow in its new home and wish its staff all the very best for the future.”

Staci Kramer will remain the editor of paidContent.

USA, New York, NY & UK, London

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UBM plc acquires 4G World exhibition and conference

February 7, 2012 — Fusion DigiNet

UBM has acquired the annual 4G World telecoms and wireless trade show from Yankee Group Research on behalf of UBM TechWeb.

4G World is the largest independent telecoms and wireless event serving the US market.  It is held annually in the autumn, with last year’s show attracting 8,500 registered attendees and 250 sponsors. The comprehensive conference program delivers updates on the latest innovations in wireless business and technology, featuring 200 leading industry speakers.

4G World serves the fast growing mobile broadband market, which is expected to serve 2.5 billion 4G subscribers by 2016 (source: Pyramid Research).  UBM TechWeb will leverage its Light Reading and InformationWeek communities – which include key service provider and enterprise technology decision-makers – to further develop 4G World as an integrated event platform for 4G marketers around the globe.

Last year’s event ran 24-27 October 2011 and generated revenues of approximately $3.2 million. Gross assets as at 31 October 2011 were $0.2 million. The acquisition is expected to exceed UBM’s cost of capital criterion in its first full year of ownership.

The 4G World operational team, led by John Sellazzo, are based in Massachusetts. Eight employees are transferring with the business.

Tony Uphoff, CEO of UBM TechWeb said:

“This acquisition expands our offering in the rapidly-accelerating mobile broadband market.  4G World brings a valuable brand to our portfolio, and will immediately be able to tap into our thriving Light Reading and InformationWeek online communities serving global communications providers, enterprise technology executives, developers and the 4G marketers tasked with reaching them.  I would like to welcome John Sellazzo and his team into UBM TechWeb and I look forward to working with them to drive the business forward in close co-operation with Joseph Braue, Group Director of UBM Techweb’s Light Reading Communications Network.”

USA, Massachusetts

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UK private equity investment in the £10M-£10OM market grows by 44%

January 18, 2012 — Fusion DigiNet

Data from the Lyceum Capital and Cass Business School UK Growth Buyout Dashboard shows that the UK has reinforced its position as the preeminent market for private equity investment in Europe, with activity in its lower mid-market having continued its strong recovery in 2011 to pre-recession levels of almost 100 deals.

Highlighting the segment’s robustness despite macro-economic challenges, the UK Growth Buyout Dashboard, revealed 44 per cent growth in the total number of transactions last year to 91, compared to 63 in 2010 and 34 deals in 2009.

The quarterly data, which analyses UK-headquartered private equity control deals in the £10 to £100 million enterprise value space, also shows that total deal value has more than trebled over the past three years, with aggregate values in excess of £3.4 billion last year compared to over £2.2 billion in 2010 and just above £1.0 billion in 2009.

Technology, media and telecommunications (TMT) was the stand-out sector – a trend which is likely to continue, driven by growth in innovative IT solutions such as cloud computing and mobile business applications. 26 TMT deals completed during 2011, contributing to 29 per cent of completed transactions, compared to 11 a year earlier and just four in 2009.

Click here to read the full UK Growth Buyout Dashboard.

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Property Drum acquires The Negotiator

January 6, 2012 — Fusion DigiNet

Property Drum has acquired The Negotiator.  The deal includes The Negotiator magazine, the website (www.the-negotiator.co.uk) and The Negotiator Awards

“This is great news for the industry,” said Property Drum Managing Director Grant Leonard. “Across the two titles we can now reach more offices, giving us a near-total market coverage.

“Both titles are very popular with agents, most of whom still prefer to receive printed publications and each has its own focus and editorial style. We intend to develop both magazines to meet the interests of all agencies, large or small, corporate or independent.”

Editor of The Negotiator, Clare Bettelley will remain in her current position and the partnership also includes the popular Negotiator Awards along with the website and e-newsletter.

Sheila Manchester, Editorial Director of Property Drum said: “We are really looking forward to working with Clare, who we consider to be one of the most talented journalists in property.”

The Negotiator will resume publication next month.

UK, East Sussex

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UBM TechWeb acquires Online Marketing Summit

November 19, 2011 — Fusion DigiNet

UBM TechWeb has acquired digital marketing event Online Marketing Summit.

“We are delighted to add Online Marketing Summit to UBM’s portfolio of global digital marketing brands and services, which include Technology for Marketing and Advertising in India, China and the UK, Internet World in the UK, and E-Commerce Expo in the UK,” said Kathy Astromoff, UBM TechWeb Executive Vice President and Group General Manager. “This acquisition also accelerates our mission of delivering high quality content and Marketing-as-a-Service for digital marketers and marketing tools, applications and service providers worldwide.”

Online Marketing Summit is taking place February 6-10, 2012 at the Hilton San Diego Bayfront. Online Marketing Summit focuses on empowering a global community to learn and share best practices in digital marketing. The event features over 100 sessions and case studies, an Expo show floor, a full day Online Marketing Boot Camp, rich networking opportunities and influential speakers including executives, authors, marketers and social media experts at Adobe, Best Buy, Bing, Cisco, Dell, DuPont, Eloqua, GM, Google, HP,IBM,  Intel, SAP, Salesforce, SEOmoz and more. Topics to be covered include: social media, mobile marketing, search, email, marketing automation and more.

Online Marketing Summit was acquired by UBM TechWeb, while the Online Marketing Institute will continue to run independently. Aaron Kahlow will continue to serve as the Conference Director for Online Marketing Summit focusing on content programming and sales and marketing partnerships.

USA, San Francisco, CA

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