UBM (UBM), which organises global events such as the Japan Jewellery Fair and offers communications services, took a £32m top-line hit from currency movements last half. In contrast, its operating profits were boosted by £11m in gains from disposals and a pension settlement.
Exclude these one-off effects and UBM increased sales at both its events and PR newswire segments by about 5 and 3 per cent, respectively, to £214m and £98m. The growth in events was driven by a shift to holding larger events as well as strong trading in emerging markets, which contributed 41 per cent of annual event sales, up from 38 per cent last year. And the division's outlook seems strong, with deferred revenue up over 4 per cent to £191m and forward bookings for its largest 20 events up 8 per cent (ignoring currency movements).
However, those gains were offset by a 9 per cent underlying slump in sales of 'other marketing services' - a division that helps clients improve their branding and customer engagement. UBM is currently restructuring the unit to complement its events. For instance, it may launch websites with blogs, chat rooms and forums that act as 'honeypots' for communities such as gamers and hackers, says newly appointed chief executive Tim Cobbold. Those could drive up registrations for events and inform their content.
Broker Liberum expects pre-tax profits of £147m this year, giving EPS of 47p, rising to £162m and 52.1p in 2015.
| UBM (UBM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 620p | MARKET VALUE: | £1.5bn | |
| TOUCH: | 620-622p | 12-MONTH HIGH: | 759p | LOW: 617p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 88p* | NET DEBT: | 184% | |
| Half-yearto 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 (restated) | 392 | 41 | 12.8 | 6.7 |
| 2014 | 361 | 83 | 28.5 | 6.8 |
| % change | -8 | +104 | +123 | +1 |
Ex-div: 20 Aug Payment: 9 Oct *Includes intangible assets of £875m, or 356p a share | ||||
