Informa looks out of shape

The strategy is a departure from the textbook of a company that has spent 25 years building a hive of distinct operating units that were largely left to their own devices. Informa has also earmarked £60m to £90m for organic investment over the next three years, but that could depress its margin by up to 2.5 percentage points. The goal is to return its floundering business intelligence unit to growth by the end of 2016. Divisional sales fell about 7 per cent (organically) to £161m over the half, reflecting a lack of divisional structure as well as greater frugality in the pharmaceutical and financial industries.

Informa’s standout performer was its global events division, which increased adjusted operating profit by 18 per cent to £70m. That can be explained by the acquisition of China Beauty Expo, which attracted 250,000 visitors to its flagship event in Shanghai. Those gains could accelerate - Informa is acquiring US trade show organiser Virgo to establish a foothold in the world’s largest exhibition market.

Broker N+1 Singer expects adjusted pre-tax profits of £293m, giving EPS of 38.1p, falling to £291m and 37.6p in 2015.