"A key message is that we had a tough half," said UBM (UBM) finance director Bob Gray as the media group reported its results. Indeed, a tricky first quarter was partly offset by strong second-quarter trading, leaving group revenue slightly ahead of expectations, and the adjusted operating profit down 12 per cent to £80.7m in constant currencies.
Challenging UK market conditions and restructuring were partly to blame, but so was the cyclical nature of the events division, which accounts for 56 per cent of group revenue and 78 per cent of earnings. That's because a disproportionate share of big emerging markets events, notably in China, which alone delivers one-quarter of revenue, run in the second half. As a result, underlying sales grew 1.2 per cent, but profit slumped 17 per cent to £63m. However, forward bookings for the top 20 events were up an encouraging 11.7 per cent.
Elsewhere, sales at the PR newswire business nudged ahead by 2 per cent, but marketing services suffered a 13 per cent decline. Following the disposal of UBM's Data Services businesses in the first half, the group has put £16m of marketing services revenue under review and is restructuring the business to align with events, costing £9.6m.
JPMorgan has cut its pre-tax profit forecast from £169m to £160m for the full year, giving EPS of 53.5p (from £147m and 47.7p in 2012).
| UBM (UBM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 733p | MARKET VALUE: | £1.8bn | |
| TOUCH: | 732-733p | 12-MONTH HIGH: | 795p | LOW: 627p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 79p* | NET DEBT: | 206% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 397 | 59.4 | 18.6 | 6.70 |
| 2013 | 391 | 40.8 | 12.9 | 6.70 |
| % change | -2 | -31 | -31 | - |
Ex-div: 21 Aug Payment: 10 Oct *Includes intangible assets of £935m, or 381p a share | ||||
