Informa acquires a stake in Chinese company Baiwen

informa2Informa plc has acquired a stake in Baiwen, the owner and organiser of the annual China Beauty Expo (“CBE”). the terms of the deal were not disclosed.

CBE is the largest beauty trade event in China, comprising three co-located exhibitions that take place annually in Shanghai in May: Cosmetics China, Cosmetech and Beauty Shanghai. In 2013, the 18th edition of CBE attracted around 1700 exhibitors from 22 countries and some 250,000 visitors across a floor space of approximately 120,000 sqm.

CBEPeter Rigby, Chief Executive of Informa, said, ​”The acquisition of a stake in Baiwen is an exciting and strategically important move for Informa, increasing our exposure to the Chinese exhibition market and further strengthening our position in the beauty and aesthetics segment. We look forward to working closely with our partners at Baiwen to extend the strong growth record of CBE and leverage our collective expertise to exploit other opportunities.”

UK, London & China, Shanghai

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Informa plc – Half year results

informa2Informa plc has announced half year results for the six months ended 30 June 2013.

Financial highlights

  • Group organic revenue growth (continuing) of 1.2% to £566.7m (H1 2012: £562.6m)
  • Adjusted operating profit (continuing) up 2.7% to £162.0m (H1 2012: £157.7m)
  • Improvement in H1 adjusted operating margin (continuing) to 28.6% (H1 2012: 28.0%)
  • Adjusted diluted EPS growth (continuing) of 5.0% to 18.9p (H1 2012: 18.0p)
  • Dividend increased – interim dividend raised 6.7% to 6.4p (H1 2012: 6.0p)
  • Corporate Training disclosed as asset held for sale and results classified as discontinued
  • Statutory loss for the period of £56.3m (H1 2012: £41.9m loss), reflecting loss from discontinued operations of £115.7m
  • Strong cash flow – cash conversion rate (continuing) of 70% (H1 2012: 74%)
  • Net debt/EBITDA ratio of 2.4 times (H1 2012: 2.3 times)

 Operational highlights

  • Events division (continuing) organic profit growth of 18.6%
  • 147 large events run in H1, delivering double-digit organic revenue growth
  • 20% of Group revenue (continuing) from emerging markets in the last 12 months (H1 2012: 18%)
  • Deferred income growth of 7% at constant currency
  • Incremental cost reduction programme implemented at PCI
  • Agreed disposal of Corporate Training businesses for up to USD 180m
  • Exit from small conference businesses in Spain and Italy
  • Appointment of Director of Open Access within Academic Information
  • Chief Executive succession plan announced

 

Peter Rigby, Chief Executive, said:

“It has been a very busy six months for Informa that has resulted in another strong financial performance and further improvement to the underlying quality of earnings. The sale of our non-core Corporate Training businesses will leave us leaner and more resilient, with a sharper focus on higher growth assets offering an attractive return on capital. This is illustrated by the positive organic growth across our continuing operations in H1, the highlight of which was almost 19% organic profit growth in Events.

The outlook for the second half is good and after adjusting for modest dilution from the Corporate Training transaction, underlying expectations for the full year are unchanged. Encouragingly, there are some tentative signs of improvement in areas that have proved particularly tough in recent years, providing grounds for cautious optimism.

Our strong performance has led to another increase in the interim dividend, up 6.7% to 6.4p and our leverage remains comfortably within our target range at the end of June, before receiving the cash proceeds for Corporate Training.

I recently announced my intention to retire as Chief Executive at the end of the year. I have been with the Group for 30 years and feel now is the right time to hand over the reins, with Informa in great shape financially, operationally and culturally. Stephen A. Carter will take over as CEO from 1st January 2014, following a thorough handover process.”

Click here for the full announcement.

UK, London

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Informa disposes of its five corporate training businesses

informa2Informa plc is selling its five Corporate Training businesses to Providence Equity Partners for a total consideration of up to $180m. The deal is expected to complete in the third quarter of 2013.

The initial consideration of $165m, consists of $100m in cash (net of indebtedness and working capital adjustments on completion) and a $65m vendor loan. The vendor loan is for a maximum term of 6.5 years and attracts a PIK interest rate of 1% in the first two years, rising to 10% in the third year with a further 1% per annum increase thereafter.

providenceequityThe cash element of the consideration will initially be used to reduce Group net debt. A further cash payment of up to $15m will be received by Informa in 2014 dependent upon the businesses achieving a certain level of revenue in 2013.

In the year ended 31 December 2012, the contribution attributable to the Corporate Training businesses was revenue of approximately $194m (£122m) and adjusted EBITA of $23.5m (£14.8m). As at 31 December 2012 the business had gross assets of $358.8m (£225.7m).

Peter Rigby, Chief Executive, said, “The disposal of our Corporate Training businesses creates a more focused, higher growth, higher margin Events division with more visible and predictable revenue streams, enhancing the underlying quality of Group earnings.

I would like to take this opportunity to thank all of our colleagues within Corporate Training who have worked so diligently and intelligently to develop the businesses through a highly challenging economic period. I believe Providence, with a significant investment already in the education sector, will be an excellent home for the businesses.”

UK, London

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