Fusion Corporate Partners

UBM plc has reported results for the six months ended 30 June 2012

Highlights

• Revenues up 7.3% to £508.7m – underlying revenue growth of 6.8%
• Adjusted operating profit up 12.5% to £103.4m
• Fully diluted adjusted EPS up 13.9% to 28.6p
• Cash generation from operating activities up to £113.9m (112% conversion)
• Events operating profit up 29.6% to £74.8m, 66.5% of group total (excluding corporate costs)
• Forward bookings for top 20 events up 12.7%
• Emerging Markets revenues up 20.9% to £93.1m, representing 18.3% of total
• Seven acquisitions completed in H1 for expected consideration of £26.6m
• Initiated strategic review of Data Services businesses

David Levin, UBM’s Chief Executive Officer, commented, “We have had a good first half of the year with underlying revenue growth of 6.8% and margins up almost a percentage point to 20.3%. Our strategy is
yielding positive results as we continue to improve the quality of the business. We have decided to explore strategic options for the Data Services businesses to confirm we are allocating capital appropriately between the growing number of opportunities now available to us.

Our events portfolio performed very well with good attendee-led technology events in the US, an above-plan performance at Ecobuild in its first edition under UBM ownership, and strong results from our events in Emerging Markets, particularly in China. PR Newswire generated GDP-plus revenue growth and improved its margins while also launching new products. Data Services results reflect specific challenges in two verticals but overall the business made good progress. Marketing Services – Online grew well, led by our community-focused products, while the Print component declined more rapidly than anticipated.

We remain on track to meet our expectations for the full year. We now expect improved underlying growth for Events of 12%-14%. PR Newswire remains on track. We maintain full year guidance for Data Services where we expect an improved performance notably from UBM TechInsights in the second half. However, we now expect Marketing Services – Online and Print to deliver growth of between 0%-2%. While our business is trending positively, we are retaining our consolidated guidance as we are mindful of the uncertain external environment.”

Read the full announcement here http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11279128

UK, London

Reed Elsevier, the global professional information company, has reported revenue, profit and earnings growth in the six months to 30 June 2012.

Financial and Operational Highlights 

Underlying revenue growth across all five business areas: Underlying revenue growth +5% (+3% excluding biennial event cycling) after adjusting for acquisitions and disposals and currency translation. Total reported revenues grew +5% to £3,053m or +12% to €3,725m.

Underlying adjusted operating profit growth across all five business areas: Underlying adjusted operating profit growth +7% after adjusting for acquisitions, disposals and currency translation. Total adjusted operating profit grew +9% to £845m or +16% to €1,031m; +8% at constant currencies. Margins increased by 1.1 percentage points to 27.7%, driven by improvements in all five business areas.

Stable interest and tax: Interest charge slightly lower at £107m/€131m; adjusted effective tax rate increased by 0.4 percentage points to 23.7%.

Adjusted EPS growth: Reed Elsevier PLC +11% to 24.7p; Reed Elsevier NV +18% to €0.47; +10% at constant currencies. Reported EPS after amortisation of acquired intangible assets and acquisition related costs +52% to 24.0p for Reed Elsevier PLC and +57% to €0.47 for Reed Elsevier NV including disposal gains.

Interim dividend: Reed Elsevier PLC +6% to 6.00p; Reed Elsevier NV +18% to €0.130. The difference in dividend growth rates reflects movement in euro/sterling exchange rates since last year’s interim dividend announcement date.

Balance sheet & cash flow: Net debt of £3.3bn/€4.1bn at 30 June 2012, 2.3 times adjusted 12 month trailing EBITDA on a pension and lease adjusted basis (1.7 times on an unadjusted basis). Adjusted operating cash flow conversion rate of 92%. Capital expenditure represented 5% of revenue (6% expected for full year).

Organic investment in transforming core business: Continued investment in digital platforms and products across Reed Elsevier. Range of insurance data services extended along carrier workflow. Positive customer reaction to Lexis Advance releases. Launch of online clinical reference tool ClinicalKey, and roll out of Nova platform across exhibitions globally.

Organic build out of new products into adjacent markets and geographies: 15 new exhibitions launched, the majority in high growth markets; XpertHR launched in US market; insurance data services introduced in UK; new legal practical guidance products released internationally.

Acquisitions: Buyout of leading Brazilian exhibitions joint venture completed; other acquisitions of small high growth exhibitions and paid content and data businesses.

Divestments: Process accelerated in H1. Disposals of Totaljobs, MarketCast, and other small publishing and services assets completed. Planned disposals of Variety and RBI Australia announced.  We expect completed and planned disposals to be mildly dilutive to EPS in the short term. However, we intend to use gross divestment proceeds to buy back shares this year, mitigating this impact. In H1 gross cash proceeds from disposals were £158m/€193m.

Elsevier (41% of adjusted operating profit)

• ·     Underlying revenue growth +2%; unit volume and usage growth in research, particularly in emerging markets, and strong revenue growth in databases and tools driving +5% revenue growth in Science & Technology. Health Sciences flat, with double digit growth in electronic revenues offset by declines in print books and pharma promotion
• ·     Double digit growth in article submissions and usage across science and health; successful launch of ClinicalKey
• ·     Underlying operating profit +4%; reflecting ongoing process efficiencies
• ·     FY 2012 outlook: H1 trends continuing into H2 generating modest underlying growth

LexisNexis Risk Solutions (22% of adjusted operating profit)

• Underlying revenue growth +5%; Insurance +7% driven by product extensions across carrier workflow; good growth in Business Services. Modest growth in Screening; moderating declines in Government
• New product rollouts across Insurance and Business Services continuing
• Underlying operating profit +5%; reported margin expansion reflects disposal of low margin business
• FY 2012 outlook: Continued good growth in Insurance and Business Services supported by new products; Government remains mixed

LexisNexis Legal & Professional (12% of adjusted operating profit)

• Underlying revenue growth +1%; continued good growth in new sales and usage of legal research in law firms and corporate customers and in international online; moderated by print and marketing services declines
• Lexis Advance releases progressing well
• Underlying operating profit +2%; process efficiencies more than offset continued development costs
• FY 2012 outlook: Customer markets remain subdued, limiting upside to revenue growth and further margin expansion

Reed Exhibitions (18% of adjusted operating profit)

• Underlying revenue growth +23% (+12% ex cycling); H1 revenues benefited from timing of annual shows adding around 4 percentage points to growth, and strong growth in emerging markets
• Investment in higher growth markets through new launches and small selective acquisitions
• Underlying operating profits +30%; margin improvement partially reflecting positive impact of show timing in H1
• FY 2012 outlook: Continued strong underlying revenue growth (excluding cycling), albeit moderated from H1 double digit rate as annual show timing unwinds

Reed Business Information (7% of adjusted operating profit)

• Underlying revenue growth +1%; continued good growth in data services and marketing solutions, leading brands broadly stable, declines in other magazines & services
• Integration of CBI China, Accuity and Ascend on track. Totaljobs, MarketCast, and other small disposals completed; further disposals announced
• Underlying operating profits +10%; record margin of 18% reflects process efficiency and portfolio changes
• FY 2012 outlook: Good growth in data services, stable leading brands, continued weakness in other magazines & services

UK, London

Related articles

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• Elsevier acquires The Ocular Surface Posted onJanuary 19, 2012
• Elsevier acquires QUOSA Posted on January 12, 2012
• Reed Elsevier to acquire Accuity Posted on September 28, 2011
• Elsevier acquires oncology journal portfolio From Cancer Information Group Posted on February 4, 2011
• Martini Media Network raises $6 million led by Reed Elsevier Ventures Posted on June 14, 2010

Euromoney Institutional Investor PLC, the international publishing, events and electronic information group, has announced its Interim Management Statement for the period from April 1 to July 24, 2012.

Highlights

• Total revenues for the quarter to June 30, 2012 increased by 9% to £111.0 million, driven by continued growth from the group’s research and data businesses.  Underlying group revenues, excluding the impact of last year’s acquisition of Ned Davis Research, increased by 3% (and by 1% at constant exchange rates).
• Underlying subscription revenues increased by 6% (and by 5% at constant exchange rates). Subscription growth continues to be generated by the group’s premium electronic information services such as BCA Research, the independent macro economic research house, and CEIC Data, the emerging markets data provider. Headline subscription revenues, including NDR, increased by 21%.  Advertising revenues followed a similar trend to the second quarter – advertising from global financial institutions remained weak but this was offset by growth from the energy sector and emerging markets.
• The third quarter is the most important of the year for the event businesses, with many of the group’s largest events held during this period.  While the bigger events put in a robust performance, markets became more challenging as the quarter progressed, particularly for smaller events.  As a result, sponsorship revenues for the quarter fell by 7% while delegate revenues remained steady.
• The group generates nearly two thirds of its revenues in US dollars and movements in the sterling-dollar rate can have a significant impact on reported revenues.  However, the average sterling-dollar rate for the third quarter was $1.60, against $1.64 a year ago, and the impact of exchange rates on revenues in the third quarter was not significant.

The following table summarises the year-on-year revenue changes for the third quarter at both headline rates and at constant exchange rates:

Financial Position

Net debt at June 30 was £51.3 million, a reduction of £37.2 million since March 31, reflecting the group’s strong operating cash flows in the period.  The third quarter is traditionally the strongest of the year because of the importance of the cash flows of the event businesses.  In addition there were no significant non-operating cash flows in the period and movements in the US dollar exchange rate had no significant effect on net debt levels.

UK, London

Related articles

• 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

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

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• 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