UBM report a decline in profits for the first six months

UBM have reported a decline in profits for the first six months to 30th June 2013, largely reflecting a tough first quarter, lower biennial contribution and continuing investments in their events portfolio.

Highlights

  • Revenues from continuing operations of £391.1m (H1 2012: £397.2m)
  • Adjusted operating profit from continuing operations of £80.7m (H1 2012: £88.7m) – decline largely reflecting tough Q1, lower biennial contribution and continuing investments in the events portfolio
  • Continuing operating cash flow generation increased to £98.8m (H1 2012: £95.9m), with cash conversion of 110.9%
  • Continuing fully diluted adjusted EPS of 21.6p (H1 2012: 22.7p)
  • Events Q2 organic revenue growth of 6.5% – PR Newswire Q2 organic revenue growth of 3.9%
  • Forward bookings for Top 20 shows up 11.7%
  • Emerging Markets revenues up 10.4% to £89.5m with operating profit of £19.6m
  • Restructuring of Marketing Services progressing – £9.6m of exceptional reorganisation and restructuring cost – expect restructuring to be substantially complete by the end of the year – £16.2m of revenues under Strategic Review
  • Receipt of £99.7m of cash proceeds upon completion of Delta disposal, applied to reduce debt

David Levin, UBM’s Chief Executive Officer, commented:

“As highlighted at the IMS in April, challenging market conditions, particularly in the UK construction sector, meant we had a tough first quarter. A good second quarter substantially offset the Q1 performance, thanks in large part to healthy growth at our shows in China. With continued strong forward booking trends for our H2 Emerging Markets events we feel confident about the second half.

“During the first half we completed the Delta disposal and accelerated the restructuring of Marketing Services. We are aligning Marketing Services more closely with our events and focusing it on more profitable, community-based business models which take advantage of our strengths in high quality content and audience reach. We’re already seeing improved profitability, albeit on lower revenues. We expect this restructuring programme to be substantially complete by the end of the year.

“These steps underline our determination to focus UBM’s business on delivering faster growth and higher quality of earnings, as evidenced by our strong cash flow performance in the first half. We look forward, with confidence, to the second half of the year and beyond as UBM continues to develop as an events-led marketing services and communications business. ”

UBM 6 mths to Jun13

UK, London

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UBM 2011 results

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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Founders of Briefing Media to acquire UBM’s UK agriculture and medical general practitioner portfolios

Neil Thackray and Rory Brown, the founders of Briefing Media Ltd, are to acquire UBM‘s UK agriculture and medical general practitioner portfolios – including the Farmers Guardian and Pulse titles – for a total cash consideration of £10 million (subject to a working capital adjustment at completion). The new business will be known as Briefing Media Group. It is funded by GCP Capital Partners, a mid-market private equity fund.

The agriculture portfolio – comprising the Farmers Guardian and Dairy Farmer titles and their associated online offerings – is based primarily in Preston and employs 57 staff.

The London-based general practitioner portfolio employs 33 staff and includes the Pulse and Practical Commissioning magazines and their digital and event products NAPC, the Mental Health Forum, Pulse Seminars, as well as Pulse Learning.

Commenting on the deal, Neil Thackray said, “When we founded Briefing Media we had a vision for creating a vibrant new business to business media company. This acquisition gives us both the scale and market opportunity to accelerate that ambition. We are delighted to be acquiring assets with such excellent pedigrees and reputations in important business markets and to be working with GCP Capital Partners. This will be the first but not the last acquisition we plan to make.”

The transaction is expected to close in the next four to six weeks. In total, these assets generated revenues of £12.1 million in 2011.

UBM has retained ownership of the Cropworld conference and the Chemist & Druggist magazine and data product portfolio.

Briefing Media article – A new chapter begins today for Briefing Media

UK, London

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