Euromoney Institutional Investor (ERM) delivered a decent half-year performance, given the tough trading climate. Revenue was flat but profits rose - thanks to a tight cost controls that enabled the online information group to invest in technology and new products while keeping borrowing relatively low. It also meant that adjusted operating margins were maintained at 30 per cent.
Subscriptions account for over half of group turnover and, after a weak first quarter, there was a marked improvement in the second quarter - helped by the acquisition of conference group TTI/Vanguard and the launch of new products. Financial publishing - which is reliant on the hardly robust financial services sector - saw revenue fall 13 per cent to £31.8m, cutting adjusted operating profit there by 22 per cent to £8.6m.
Training events are also heavily dependent on the financial sector and revenue there fell 7 per cent to £14.1m, so profits dropped 19 per cent to £2.4m. However, business publishing outside the financial sector was stronger and revenue there rose 5 per cent to £28.9m, with profits up 6 per cent to £9.8m. On the conferences and seminar side, event revenue edged ahead to £47.2m, although timing differences on some events meant that adjusted operating profit fell 7 per cent to £14.7m.
Broker Numis Securities expects full-year pre-tax profit of £114.6m, giving EPS of 70.7p (from £106.8m and 65.9p in 2012).
| EUROMONEY INSTITUTIONAL INVESTOR (ERM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 994p | MARKET VALUE: | £1.25bn | |
| TOUCH: | 993-998p | 12-MONTH HIGH: | 1,030p | LOW: 672p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 245p* | NET DEBT: | 12% | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 189 | 39.8 | 22.9 | 7.00 |
| 2013 | 187 | 42.7 | 25.9 | 7.00 |
| % change | -1 | +7 | +13 | - |
Ex-div: 22 May Payment: 27 Jun *Includes intangible assets of £515m, or 408p a share | ||||
