A strong performance from UBM's core events business helped it deliver record revenues. And although higher financing costs resulting from a renegotiation of its debt profile chipped into reported pre-tax profits, on an underlying basis profits rose 13.4 per cent to £177m.
With 20 high-margin biennial events held during the year, the events business - which represents two thirds of adjusted operating profits - recorded a 28 per cent rise in revenues to £397m. The division also benefited from its exposure to emerging markets, which now represent 40 per cent of the unit's sales after five acquisitions in the region during the year. Across the group, sales from emerging markets soared 24 per cent, and now contribute just under a third of group profits.
Meanwhile, the more vulnerable data services and PR Newswire businesses have remained relatively stable, with revenues growing 1.2 per cent and 3.6 per cent respectively.
Management expects underlying revenue growth of between 4 and 5 per cent this year, a slowdown on the 8 per cent achieved in 2011 as a result of fewer large-scale biennial events. Broker Singer Capital has left its 2012 pre-tax profit forecasts unchanged at £183.1m, giving EPS of 58.3p (from 54p last year).
UBM (UBM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 593p | MARKET VALUE: | £1.45bn | |
| TOUCH: | 592-593p | 12-MONTH HIGH: | 718p | LOW:407p |
| DIVIDEND YIELD: | 4.4% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 157p* | NET DEBT: | 128% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 802 | 130 | 42.7 | 21.6 |
| 2008 | 887 | 102 | 31.5 | 23.8 |
| 2009 | 848 | -36.0 | 30.9 | 24.2 |
| 2010 | 889 | 116 | 37.3 | 25.0 |
| 2011 | 972 | 102 | 31.1 | 26.3 |
| % change | +9 | -12 | -17 | +5 |
Ex-div: 11 Apr Payment: 17 May *Includes intangible assets of £1.25bn, or 511p per share | ||||
