Informa (INF) surprised investors (and this investment writer) on Thursday when it unveiled a new operating structure and appointed a finance chief. The publishing, events and business-intelligence giant's strategy of "measured change" may have its merits, but it's too early to tell whether it can solve its problems.
The company promoted deputy finance director Gareth Wright to finance chief, filling a six-month vacancy. It also plans to consolidate its struggling business intelligence operations and has entrusted Patrick Martell, currently chief executive of St Ives, with the monumental task of turning the division around.
Informa divided its events segment into "knowledge and networking" - encompassing training, conferences and other content-driven activities - and "global exhibitions". It also said that trading is on track and that it will outline a strategic growth plan later this year.
The company seems keen to leverage its scale and improve focus and efficiency across its businesses. But with sales growing only 0.6 per cent in the first four months of this year, it may struggle to effect significant change without sacrificing growth.
Broker N+1 Singer reiterated its sell view, calling Informa's move a "desperately needed" first step towards a sound strategy that "does little to provide substantial comfort".
