Skip to main navigation or content
Informa's three business units are firing on all cylinders. And unlike most media operations it has avoided the advertising recession because it earns just 3 per cent of revenues from ad sales. The company has instead developed new revenue streams by merging with Taylor & Francis in 2004 and IIR in July last year. This last merger in particular appears to be paying off nicely, generating good cost savings and adding to the number of markets where Informa is the leader.
Advertising
The inclusion of IIR also boosted reported sales, but organic revenue growth was still impressive at 11 per cent, twice the rate achieved in the first half of 2005. Informa's events business was particularly strong, with sales up 28 per cent on a pro-forma basis. Marketing spend is now increasingly shifting from advertising to direct methods such as events, which is benefiting the group. There was strong growth in Informa's publishing and performance-improvement business, too, with sales up by 11 per cent and 16 per cent respectively.
Numis Securities is therefore forecasting adjusted full-year EPS of 29.9p, rising to 34.3p in 2007.
| Ord price: 479p | Market value: £2bn |
|---|---|
| Touch: 477-479p | 12-month High: 498p Low: 353p |
| Dividend yield: 1.9% | PE ratio: na |
| Net asset value: 219p* | Net debt: 80% |
| Half-year | Turnover | Pre-tax | Earnings | Dividend per |
|---|---|---|---|---|
| to 30 Jun | (£m) | profit (£m) | per share (p) | share (p) |
| 2005 | 260 | -58.9 | 14.55 | 2.7 |
| 2006 | 534 | 39.1 | 6.99 | 3.3 |
| % change | +105 | - | -52 | +22 |
Informa combines good defensive elements, including strong cash flow and strong market positions, with decent growth. But its shares trade on a forward earnings multiple of 14 for 2007, which doesn't reflect these excellent qualities. Good value.
The UK’s No.1 Stockbroker
Access a selection of share tips, comprehensive company analysis and full financial data on listed companies. Plus portfolio tools with advanced alerts when you register for free here.
Advertorial Feature
With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?
by Dominic Piccarda
© The Financial Times Limited 2008. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
