Shares in Informa (INF) crept up 3 per cent on early signs of a turnround at the struggling business information, publishing and events group. Management has embarked on a two-year plan to simplify the business and focus on niche sub-markets in order to drive top-line growth across its four operating divisions, underpinned by £30m-£40m in additional investment this year.
Strip out £313m in intangible asset writedowns and impairment costs and adjusted operating profit was flat at £334m. Sales and profits slumped once again at its business intelligence division, which offers more than 400 digital subscription products; spending among its financial and pharmaceutical customers remains lacklustre. Informa's knowledge and networking business also posted declines as geopolitical tensions in continental Europe depressed demand.
The bright spot was global exhibitions, where Informa only recently "set out its stall", says chief executive Stephen Carter. Like-for-like operating profit leapt 18 per cent to £67m on the back of a strong international showing, led by Arab Health, Vitafoods in Europe and China Beauty Expo. The division also carved out a foothold in the enormous US market by acquiring a slew of trade shows spanning the construction, real estate, pop culture and nutrition industries.
Broker Numis forecasts pre-tax profit of £318m, giving EPS of 38.6p (from £306m and 39.5p in 2014).
| INFORMA (INF) | ||||
|---|---|---|---|---|
| ORD PRICE: | 532p | MARKET VALUE: | £3.5bn | |
| TOUCH: | 531-532p | 12-MONTH HIGH: | 541p | LOW: 441p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | NA | |
| NET ASSET VALUE: | 190p* | NET DEBT: | 71% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 1.23 | 125 | 16.5 | 14.0 |
| 2011 | 1.28 | 89 | 12.5 | 16.8 |
| 2012 | 1.11 | 70 | 15.6 | 18.5 |
| 2013 | 1.13 | 115 | 17.1 | 18.9 |
| 2014 | 1.14 | -31 | -8.6 | 19.3 |
| % change | +1 | - | - | +2 |
Ex-div: 30 Apr Payment: 28 May *Includes intangible assets of £2.5bn, or 390p a share | ||||
