Full-year results for business information, conference and events company, Informa (INF) reminded investors that the company was very much a creation of an acquisition spree during the boom years. Non-cash impairments of £80m in these latest figures follow on from a £50m hit a year earlier, as assets picked up during the boom are written down in the current downturn. Still, management seems capable of delivering savings, which is why underlying operating profits rose 3 per cent £350m, despite disposals and weakness in key areas denting revenues.
Among Informa's three business divisions, the academic publishing unit benefited most from a stronger fourth quarter which helped lift last year's underlying sales by 2.4 per cent to £340m. Combined with restructuring this meant divisional operating profits rose by £10m to £126m. The professional and commercial information operations, which includes many of Informa's healthcare, shipping and telecoms titles, proved to be far less defensive due to its greater exposure to business spending. Companies reining in spending, along with the disposal of several titles, meant underlying revenues declined 4.4 per cent to £357m. However, cost savings and a marked improvement in margins helped deliver a 4.6 per cent increase in profits to £121m. The weakest segment was Informa's events and training business as the lack of corporate training hit sales and led to a modest fall in profits.
Investec forecasts current year adjusted pre-tax profits of £329m and EPS of 42p (from £317m and 40.7p in 2012).
INFORMA (INF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 480p | MARKET VALUE: | £2.89bn | |
| TOUCH: | 479-480p | 12-MONTH HIGH: | 480p | LOW: 335p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 32 | |
| NET ASSET VALUE: | 220p* | NET DEBT: | 60% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 1.28 | 109 | 16.8 | 8.4 |
| 2009 | 1.22 | 97 | 18.8 | 11.5 |
| 2010 | 1.23 | 125 | 16.5 | 14.0 |
| 2011 | 1.28 | 89 | 12.5 | 16.8 |
| 2012 | 1.23 | 67 | 15.1 | 18.5 |
| % change | -4 | -24 | +21 | +10 |
Ex-div:24 Apr Payment:21 May *Includes intangible assets of £2.6bn, or 432p a share | ||||
