Euromoney grew its pre-tax profit, when adjusted for such items as amortisation, by an impressive 37 per cent to £86.6m in the year. Management say that reflects last year's cost-cutting and a return to decent revenue growth in the second half.
Indeed, there's certainly been a significant turnaround during the second half. Subscription income - the largest source of revenue - whilst up only 1 per cent year-on-year, grew 9 per cent in the second half, while sponsorship revenue grew 34 per cent in the second half and 8 per cent on the year. Advertising, too, looks in better shape - second half revenue there jumped 16 per cent, and 5 per cent year-on-year. Meanwhile, delegate s revenue grew 19 per cent in the second half, while delivering respectable 2 per cent growth on the year.
Going forward, Euromoney's strategy is to continue increasing the proportion of its revenues that are generated from subscription products, whilst accelerating the online migration of its print products. Reflecting that, the online side received £6m of investment in the period.
Euromoney's robust cash generation characteristics have helped cut the net debt pile by £49.3m since March. And broker Altium Securities expects pre-tax profits £92.1m for 2011, giving EPS of 56.6p (2010: £86.6m/53.5p).
EUROMONEY INSTITUTIONAL INVESTOR (ERM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 671p | MARKET VALUE: | £ 795m | |
| TOUCH: | 671-673.5p | 12-MONTH HIGH: | 682p | 383p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 143p* | NET DEBT: | 76% | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 221 | 35.2 | 42.1 | 17.0 |
| 2007 | 305 | 41.1 | 30.7 | 19.0 |
| 2008 | 332 | 37.4 | 41.7 | 19.3 |
| 2009 | 318 | -17.4 | -6.83 | 14.0 |
| 2010 | 330 | 71.4 | 50.0 | 18.0 |
| % change | +4 | - | - | +29 |
Ex-div:17 Nov Payment:04 Feb *Includes intangible assets of £423m, or 357p per share | ||||
