Euromoney facing slower growth

Information and events group, Euromoney , (ERM) made solid full-year progress. For the first time, subscription revenue now generates over half of total sales and net debt tumbled from £119.2m to £30.8m - the lowest level for over a decade - thanks to strong cash flow and the absence of major acquisitions.

At the research and data division, last year’s acquisition of Ned Davis Research helped boost revenues 25 per cent to £130m. The conference and seminars side, meanwhile, increased adjusted operating profit by 9 per cent to £29m, and profits at business publishing rose 5 per cent to 24.5m. Training and financial publishing, meanwhile - which are more reliant on the financial services sector - both reported falls in profit and revenues. But the group continues to invest in its online side - £10m was spent here during the year, matching last year’s sum.

Immediate prospects, however, aren't so attractive with market conditions having become much tougher since June, particularly in Europe. So, while underlying revenues grew 6 per cent in the first half, that growth slowed to 1 per cent in the second half. Although management believes the outlook for its emerging markets, which generates about a third of group revenue, will be brighter than in its developed markets during the next six months.

Broker Investec Securities expects full-year adjusted pre-tax profit of £118m, giving EPS of 71.9p (2012: £105.2m/64.3p).

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