Join our community of smart investors

Events and publishing support Informa

RESULTS: Business publisher Informa looks well placed for economic recovery
July 27, 2010

Downsizing, along with improved corporate events spending and a decent showing from the academic publishing arm, helped to support business publisher Informa. Indeed, adjust for one-off items - such as restructuring charges and aborted transaction costs - and pre-tax profit grew 13 per cent in the period to £133.4m.

IC TIP: Hold at 401p

True, organic revenue at the events and training business did fall 1.5 per cent year on year to £304m as the company axed marginal exhibitions. But higher-margin events, such as Arab Health and its IPTV exhibition, meant underlying operating profits there grew more than 11 per cent higher to £55.6m. What's more, 2011's divisional re-bookings are up around 9 per cent. Meanwhile, Informa - whose range of publications include the shipping newspaper, Lloyd’s List - experienced a typically robust showing from its academic publications arm. Operating profits there rose 6.1 per cent to £45.5m and divisional organic revenue grew 5 per cent to £141.5m. Although the professional and commercial information side was held back by financial sector weakness, prompting a 2.9 per cent revenue decline to £178.5m.

Panmure Gordon expects full-year pre-tax profit of £281m and EPS of 35.3p.

INFORMA (INF)

ORD PRICE:401pMARKET VALUE:£2.4bn
TOUCH:400-401pp12-MONTH HIGH:439p225p
DIVIDEND YIELD:3.1%PE RATIO:18
NET ASSET VALUE:230p*NET DEBT:65%

Half-year to 30 JunTurnover (£m)Pre-tax profit (£m)Earnings per share (p)Net div per share (p)
200963632.14.403.60
201062466.48.104.50
% change-2+107+84+25

Ex-div: 18 Aug

Payment: 17 Sep

*Includes intangible assets of £2.84bn, or 473p a share

.

More analysis of company results