Centaur Media plc reports profits at top end of expectations

July 15, 2011 — Fusion DigiNet

Centaur Media plc, the business information and events group, has issued a pre-close trading statement for the financial year ended 30 June 2011.  The Group expects to report profits at the top end of the Board’s expectations, with reported revenues 14% ahead of the prior year and EBITDA margins increased from 11% to 14%. Underlying FY11 revenues, excluding the impact of acquisitions and adjusting for the phasing of exhibitions, are 10% ahead.

Trading

Digital advertising revenues continued to show stronger growth than print, with H2 revenues 21% ahead of the same period last year. Print advertising revenues grew by 7% in H2. Total advertising revenues, on both a reported and underlying basis, grew by 14% year on year.

Total reported paid for content revenues grew by 7% in H2, with Perfect Information increasing its digital revenues by 8% over the same period. Underlying total paid for content revenues are only marginally up year on year reflecting continuing weakness across the consumer publishing titles.

Events revenues continue to show steady growth, with reported H2 revenues 20% ahead of the same period last year. Underlying year on year revenue growth across the events portfolio was 13%.  Marketing Week Live reported record visitor numbers and revenues 26% ahead of last year. Forward bookings across the Group’s exhibitions portfolio are showing strong growth compared to the same time last year.

Impact of the restructuring

As recently reported on Fusion DigiNet, the Group has restructured into three operating divisions, the senior management team is being strengthened, operations within Business Publishing are being rationalised and a number of non-core assets have been targeted for disposal.

The Group anticipates that the annualised cost savings related to these initiatives will exceed £1.5m with an associated exceptional cash charge in FY11, principally related to redundancy costs, of approximately £2.5m. There will also be a significant non-cash impairment charge in relation to the write down of assets affected by the restructuring. The restructuring will have no impact on the Group’s underlying performance for the year to 30 June 2011.

The rationalisation of Business Publishing and disposal of non-core assets will reduce pro-forma FY11 revenues by approximately £7m. These assets made a small profit contribution to the Group in FY11.

The restructuring is designed to enable the Group to focus in the short and medium term on a portfolio of higher growth and higher margin assets.

The Group is targeting EBITDA margins of 20% within the next 12-18 months, driven by the further investment across new products and digital platforms within the new operational structure and benefiting from the cost saving and rationalisation initiatives announced on 28 June.

Reporting segments

As a consequence of the restructure of the business into three main operating divisions: Business Publishing, Business Information and Exhibitions, the Group will be adopting a new segmental reporting structure in the FY11 preliminary results that reflects the way the business is now managed.

Cash flow and balance sheet

The Group continues to maintain a strong balance sheet, with high levels of cash generation in the second half of the year.   After taking into account the cash outflow related to the FEM acquisition announced in April 2011, the Group will report net cash at 30 June 2011 of approximately £2m.

The Group has an existing credit facility with The Royal Bank of Scotland, which has been recently increased from £5m to £8m and extended to October 2012. In addition to providing adequate headroom for the Group’s working capital requirements, the increase in the facility will provide additional capacity to finance bolt on acquisitions.

The Group expects to publish its full year results on 15 September 2011.

Geoff Wilmot, Chief Executive, commented

“The last quarter of the year, which is normally our strongest, ended at the top end of our expectations.  The improved trading conditions experienced in FY11 have continued into the current financial year. The recently announced restructuring and rationalisation, our portfolio of market leading brands and our strengthened management team, will enable Centaur to benefit more rapidly from continuing recovery and from the recent investments in digital services.  This will provide a robust platform from which to deliver accelerated revenue growth and margin improvement in the medium term.”

UK, London

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Platts to acquire Steel Business Briefing Group

June 30, 2011 — Fusion DigiNet

Platts, a division of McGraw-Hill and a global provider of energy, petrochemicals and metals information, is to acquire the Steel Business Briefing Group (the SBB Group), a privately held U.K. company and provider of news, pricing and analytics to the global steel market.  The SBB Group provides subscription-based, electronic products to the steel industry and its participants through two principal businesses, Steel Business Briefing (SBB) and The Steel Index (TSI).  Financial terms were not disclosed.  The transaction is expected to close on July 1.

“This acquisition reflects our strategic focus on high-growth global brands and businesses,” said Harold McGraw III, Chairman, President and Chief Executive Officer of McGraw-Hill.  “Platts, which derives almost two-thirds of its revenue outside the U.S., is McGraw-Hill’s most global business and is relied upon worldwide for its news, pricing and analytical services for billions of dollars of commodities transactions annually.  With world steel consumption projected to increase approximately 60 percent during the next decade, the acquisition of the SBB Group will create new opportunities for Platts, which already generates strong revenue growth and excellent margins. Earlier this year, Platts expanded its platform in market-critical natural gas analytics capabilities by acquiring Bentek Energy.”

“The acquisition of the SBB Group supports Platts’ strategy of expanding its presence in dynamic global commodity markets and immediately boosts our capabilities and the value we can provide to customers,” said Larry Neal, president of Platts.  “We intend to build upon the success of the SBB Group’s talented leadership team and its highly respected businesses, SBB and TSI.  By joining forces, we can offer a more expansive product mix that better serves the growing global demand for timely, objective information on the steel industry.”  Neal further noted that the SBB business will be integrated into Platts and that TSI will continue to operate separately.

“We are delighted to team up with Platts,” said Patrick Flockhart, the SBB Group’s chief executive officer.  “We share a common commitment to providing top-quality news, prices, analysis and events that serve the global steel supply chain and we look forward to working together to enhance the value of our offerings and the benefits we bring to our customers and the market world-wide.”

Founded in 2001, the SBB Group is headquartered in London with seven global offices and a staff of more than 180.  The Group’s original business, Steel Business Briefing, is primarily a subscription business comprising a mix of daily news, weekly reports, prices and analytical publications delivered electronically.  The Steel Index, launched in 2006, is a specialist price information business focused on compiling indices through the collection of transaction price data from industry participants.

UK, London & USA, New York, NY

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EMAP’s annual report for year ended 31 December 2010 – Highlights

June 28, 2011 — Fusion DigiNet

EMAP International Limited, the media business jointly owned by funds managed by Apax Partners Europe Managers Ltd and Guardian Media Group plc, has published its annual report to year ending 31st December. During the prior period the Group changed its year-end from the 31 March to 31 December. Wherever possible this Fusion DigiNet article compares the 12 month performances of years ending March 2009 and March 2010.

Highlights

  • Operating profit before amortisation of intangible assets and exceptional items was £81m, (9 month period ended 31 December 2009: £58m)
  • Sales were £244m (9 month period ended 31 December 2009: £164m).

The group saw revenue and profit grow in its two largest divisions: online intelligence and exhibitions and festivals. It also saw strong growth in its smaller Middle East unit.

However, these gains were offset by reductions elsewhere relating to spending in the UK public sector, especially in health and local government. This impacted trading in the Group’s publishing division which saw a marked year on year reduction in spending in public sector recruitment advertising and in its conference unit which saw lower delegate attendees to its one day event programmes serving public sector interests.

The year on year revenue reduction from these two public sector related sources amounted to £10m. Growth in the rest of the business brought the Group’s total revenue back within 1% of the prior year total.

 Acquisition Activity

The Group made three acquisitions during the year. In September 2010 100% of the share capital of Best Energy Event Ltd and related magazines was acquired for £2.6m. The company runs the Energy Event and Water, Energy & Environment, a magazine in the same sector. In November 2010 the Group acquired the remaining stake in Broadcast Video Expo for £1.8 million, bringing ownership up to 100%. In December 2010 the Futuresource Event was acquired for £2.1m. Futuresource operates in the same sector as Recycling and Waste Management and the two exhibitions will be combined.

Emap sold its investment in its Professional Beauty assets to a new joint venture in which it retains a beneficial holding. A loss of £17m was realised on the disposal, however, Emap has retained the brand which is licensed to the new joint venture.

Cash flow and debt

The Group remains highly cash generative, generating £53m, (9 month period ended 31 December 2009: £45m) net cash inflow before financing activities. Cash generation accelerated in 2010, leading to a higher level of operating cash flows of £78m (9 month period ended 31 December 2009: £41m).

Performance of the five divisions

  • EMAP Inform – generated revenues of £53m (year ended 31 December 2009: £60m)
  • EMAP Data and Insight – generated revenues of £80m (year ended 31 December 2009: £78m)
  • EMAP Connect – generated revenues of £78m (year ended 31 December 2009: £77m)
  • EMAP Networks – generated revenues of £14m (year to 31 December 2009: £17m)
  • EMAP Middle East – generated revenues of £19m (year ended 31 December 2009: £17m)

Read the full report here.

UK, London

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Intent Media acquires UBM titles for £2.4m

June 27, 2011 — Fusion DigiNet

Independent business media specialist Intent Media is to acquire the UK entertainment and technology product portfolio of UBM plc for a total cash consideration of £2.4m.

Intent specialises in entertainment, technology and leisure markets. Its portfolio already consists of over a dozen market leading online, print and event brands across video games, music, computing, mobile, toys, licensing and cycling.

The titles being acquired include Television Broadcast Europe, Music Week, Pro Sound News Europe and Installation Europe, plus additional websites, newsletters, conferences, show dailies and awards events. Last year this portfolio generated £5.4m of revenue.

Intent Media is headquartered in Hertford, England but is opening an additional office in Islington Green, London, this summer. Up to 36 staff will transfer on completion of the deal and total staff count will rise to around 90, with projected combined revenues of over £10 million for the financial year ending September 30th 2012.

“This is a significant move for Intent, essentially doubling the size of the company. We are heading into markets that fit our current landscape, whilst also continuing our policy of holding a leadership position wherever we operate. The brands we are taking over are well established, with experienced staff and impressive heritage,” said Intent Media managing director Stuart Dinsey.

“Intent has become the UK’s leading business media player in entertainment and technology. We are very excited to have added these new brands. Our policy of investment in online and events will continue, whilst ensuring longevity where possible for the core print titles.”

UBM is selling the portfolio on behalf of its UBM Connect division. The transaction is expected to complete in the next six weeks, subject to the conclusion of a TUPE consultation process.

“I am pleased we will pass stewardship of these well-established entertainment and technology titles to Intent Media, which focuses on serving specialist entertainment, technology and leisure markets,” said UBM Connect CEO Adrian Barrick.

Existing core Intent Media brands include MCV: The Market for Computer & Video Games, Develop, ToyNews, Mobile Entertainment, Bikebiz, PCR, Musical Instrument Professional, Audio Professional International and Licensing.biz.

Events run by Intent include The London Games Conference, MI Retail Conference & Expo, Monetising Mobile Conference and sundry trade awards.

Intent Media’s previous acquisitions:

  • MCV launched in September 1998 (when we were MCV Media Limited)
  • Develop acquired November 2000
  • ToyNews acquired June 2001
  • Management buy-out from German listed outfit Computec (and became Intent Media) March 2002
  • CTW acquired (from Highbury) and incorporated into MCV March 2002
  • CTO acquired (from Trinity Mirror) and incorporated into PCR 2006
  • BikeBiz acquired in February 2006
  • MI Pro acquired in March 2006
  • Audio Pro International acquired in March 2006
  • Music Trade News accquired (and incorporated into MI Pro) July 2008
  • All assets of Skep Media acquired January 2009
  • All assets of Prestige Media acquired January 2009

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UBM acquires 70% of US catering tradeshow business Catersource for $5 million

June 21, 2011 — Fusion DigiNet

United Business Media has acquired a 70% equity stake in the Catersource catering conference and exhibition and its sister show Event Solutions, which serves the event planning industry. UBM has acquired the majority stake from Catersource’s private owners for a total cash consideration of $5 million, on behalf of UBM Live.

Founded in 1982 and based in Minneapolis, Catersource hosts an annual conference and exhibition for the USA catering and event planning industry, as well as awards events and supporting print and digital marketing platforms. The events take place annually during February and March in Las Vegas. This year’s Catersource and Event Solutions shows attracted over 10,000 delegates and more than 4,500 sponsor and exhibitor companies.

USA catering industry revenues grew at 9% in 2010 – exceeding $14 billion – with similar rates of growth forecast for this year. The USA catering industry is highly fragmented, comprising approximately 80,000 catering operations nationwide. Catersource serves both the institutional and private segments of the catering industry.

Catersource will become part of UBM Live, adding to UBM Live’s portfolio of events serving the Food & Leisure industries both in the USA and internationally. The portfolio includes brands such as Cruise Shipping, Food Ingredients, Health Ingredients, Leisure Industry Week and Confex.

Founder Michael Roman and his partner Kelvin Lee, together with Catersource’s 13 employees, will remain with the business following completion of the acquisition. In 2010 Catersource generated approximately $4 million of revenue.

The acquisition is expected to meet UBM’s cost of capital hurdle rate in its first full year of ownership.

Simon Foster, Chief Executive of UBM Live said:

“Catersource is the leading events business in the fast-growing US catering industry. We see strong opportunities to grow the brand by leveraging our US and worldwide events infrastructure, as well as driving synergies with other UBM events. We are delighted that Kelvin Lee, Mike Roman and their team will be joining UBM Live and look forward to working with them to develop the business going forward.”

UK, London & USA, Minneapolis, MN

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Informa acquires Brasil Trade Shows Partners Participacoes S.A. & Ibratexpo Feiras e Eventos Ltda

June 14, 2011 — Fusion DigiNet

Informa plc has acquired Brasil Trade Shows Partners Participacoes S.A. (BTS). BTS is a leading organiser of trade shows in the Food & Beverage Services, Furniture Manufacturing and Franchising sectors, with leading brands including Fispal, ABF and ForMobile.  BTS has been acquired from DLJ South American Partners LP.

In addition, Informa has acquired Ibratexpo Feiras e Eventos Ltda which includes Serigrafia, the largest sign, screen and digital imaging show in South America from the Alatzatianou family.

The combined maximum cash consideration payable is BRL 210m (£81m).  Informa expects these acquisitions to be earnings enhancing in 2011 and to enhance the Group’s return on capital in 2012.

These acquisitions will further strengthen Informa’s global exhibition operations.  Serigrafia enhances Informa’s leading position in the print sector alongside IPEX, one of the world’s largest print related exhibitions.  BTS provides a platform for growth in South America and strengthens Informa’s experience in the strategically important food sector.  Furthermore, the strength of its brands will provide Informa with attractive geo-cloning opportunities.

Commenting on the acquisitions Peter Rigby, Chief Executive, of Informa said, “These acquisitions are consistent with two of our strategic goals; growing our trade show business and expanding our presence in emerging markets.  BTS is an exceptionally well-managed trade show organiser with an enviable reputation in one of the world’s most dynamic and fast growing regions.  Serigrafia provides the perfect platform on which to expand our print portfolio in the emerging markets.  We are delighted that the senior management team of BTS and the founders of Serigrafia are joining the Group on acquisition.”

UK, London & Brazil

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DMGT to sell GLM, the United States’ largest privately-held tradeshow management company

June 10, 2011 — Fusion DigiNet

The FT is reporting that The Daily Mail & General Trust is to sell George Little Management (GLM), the United States’ largest privately-held tradeshow management company.

An information memorandum has been sent to prospective trade and private equity bidders, with Reed Elsevier, UBM and Informa potentially interested parties.

GLM was founded by George F. Little, in 1924, and acquired by dmgt in 2007, and is part of the dmg::events portfolio. The company is forecast to tuenover $71 million and make $26 million of pre-tax profits. GLM employs some 100 people, with offices in White Plains, NY, Atlanta, GA and Naples, FL.

GLM currently produces 15 tradeshows. Alltogether, these events have around 11,000 exhibitors in 1.8 million net square feet of exhibit space, and attract approximately 345,000 attendees.

Outside of the trade arena, the company’s Soiffer Haskin division organizes private sales for luxury goods manufacturers and retailers. Established in 1982 and acquired by GLM in 1998, Soiffer Haskin currently conducts 40 private sales annually, for clients including Hermes, Mikimoto, Bulgari, Tourneau, Loro Piana, Pratesi, Valentino, Max Mara, Ralph Lauren Home, Hugo Boss and Hickey Freeman.

USA, White Plains, NY

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Montgomery Worldwide to acquire 100% of Fresh RM

June 9, 2011 — Fusion DigiNet

Montgomery Worldwide is in the final stages of a deal to acquire Reed Exhibitions’ shareholding in the 50:50 Montgomery:Reed joint venture, Fresh RM, for an undisclosed amount. The deal is expected to complete on 1 July 2011.

The joint venture set up in 1999 brought together Montgomery’s food and drink events and Reed’s hospitality portfolio into a single company.

Fresh RM’s portfolio of shows includes Hotelympia, IFE, Pro2Pac, Speciality & Fine Food Fair, Speciality Chocolate Fair, Hospitality, Careers in Hospitality, and ifeproductsearch.com.

“During the course of the joint venture, Fresh has developed into the largest and most respected UK exhibition organiser in the food, drink & hospitality sectors” commented Sandy Angus, Chairman of Montgomery Worldwide. “The company has not only developed the initial portfolio of shows but has expanded its business with a number of launch events that are now well established within the marketplace.”

Commenting on the sale, Reed Exhibitions UK’s CEO Andrew Fowles said “The Fresh RM JV has been a great success for Montgomery and Reed Exhibitions.  We believe now is an appropriate time for the business to be managed under one owner and the sale of our shares to Montgomery allows continuity for the staff. We plan to complete on 1st July 2011 and thereafter wish Montgomery and the Fresh RM team every success for the future.”

Fresh RM will continue to operate out of the Montgomery Worldwide offices in London.

“We have enjoyed our joint venture with Reed Exhibitions, they have been excellent partners”, says Sandy Angus. “However both parties felt that Fresh can grow faster under the control of one company and we are delighted that it will be Montgomery Worldwide taking the business forward.”

Uk, London

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Clarion events take over Scotland’s Speciality Food Show from The Guild of Fine Foods

June 9, 2011 — Fusion DigiNet

Clarion events bought Scotland’s Speciality Food Show from The Guild of Fine Foods. For the last four years Clarion Events and The Guild of Fine Food have jointly owned the Show, which has been co-managed by Springboard and The Guild.

In their announcement The Guild of Fine Foods say the reason for the sale is “they are keen to commit more time and resources to their many other interests within the UK speciality food and drink market.”

Scotland’s Speciality Food Show is co-located with Scotland’s Trade Fair and the two fairs attract 4800 key buyers and retailers from the gift and food sectors in Scotland.

Springboard Events, as well as organising Scotland’s Trade Fair, have been very involved in the marketing and operations of the Food Show in the past and are planning the transition from the current management.

Springboard Director Mark Saunders said: “This new arrangement will allow Clarion and Springboard to channel more resources in terms of management, sales and marketing into this Show. The show will remain co-located with Scotland’s Trade Fair as this is popular with both sets of buyers. We will maintain separate identities and marketing campaigns for both shows and we will be looking to grow both the exhibitors and visitors to increase the appeal of the show.”

UK, London & Glasgow

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Clarion Events Boosts Telecoms Portfolio with Acquisition of Avren Events

June 9, 2011 — Fusion DigiNet

Here is one we missed in May.

Clarion Events has purchased expert network telecommunications event organisers Avren Events. The acquisition supplements Clarion Events’ existing telecoms applications and services confexs.

Clarion Events CEO Simon Kimble commented: “We are delighted to welcome the Avren team and portfolio of network telecommunications events to the Clarion family, and look forward to fulfilling the potential of the fast growing markets they serve. Clarion’s investment boosts the existing Avren team’s capacity to scale existing events and launch into new markets. Clarion Events has a reputation for allowing its partners and brands across many market sectors and localities to have maximum control, keeping them responsive to market needs.”

UK, London

 

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