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UBM puts on a good show

International expansion and more large exhibitions helped UBM deliver a sound performance
March 3, 2014

UBM’s (UBM) global expansion and shift towards larger exhibitions continue to pay off. The former TV-and-magazine group posted higher profits across all three of its divisions last year. But events led the pack, with adjusted operating profits up 5 per cent to £149m - about four-fifths of the group total.

IC TIP: Hold at 716pp

The key to the segment’s profitability has been a focus on large annual trade fairs. UBM organised 91 events generating over £1m in revenue last year - two more than in 2012. Its visitor numbers leaped 19 per cent to 1.9m, and forward bookings for its largest events, which include blockbusters like the Hong King Jewellery & Gem Show and Frankfurt's Food Ingredients Europe, were up 13 per cent year-on-year at the end of January.

Perhaps in a bid to escape Europe’s economic malaise, UBM launched 22 shows in 12 countries last year. The company now earns over 90 per cent of its revenues in foreign currencies. This proved a tailwind last year, boosting the company's underlying rate of profit growth by a percentage point to 6 per cent.

Broker Investec expects pre-tax profit of £155m in 2014, giving EPS of 49.2p, rising to £175m and 55.5p in 2015.

UBM (UBM)
ORD PRICE:716pMARKET VALUE:£1.8bn
TOUCH:715-716p12-MONTH HIGH:775pLOW: 619p
DIVIDEND YIELD:3.8%PE RATIO:20
NET ASSET VALUE:88p*NET DEBT:183%

Year to 31 DecTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Dividend per share (p)
2009848-3630.924.2
201088911637.325.0
201197210225.426.3
2012 (restated)76912243.326.7
201379411036.427.2
% change+3-10-16+2

Ex-div: 30 Apr

Payment: 27 May

*Includes intangible assets of £888m, or 361p a share