Double-digit revenue growth at UBM's events business offset tough conditions at the print marketing and data services businesses. Accordingly, operating profit rose 12.5 per cent year-on-year to £103.4m – that growth leaves the share price rating looking too modest.
Strong demand for technology events in the US, and rapid expansion in China, helped the events business grow revenues 31.6 per cent to £233m, with operating profits there up 29.6 per cent to 74.8m. Moreover, emerging markets reported revenue growth of 20 per cent and now generate over a third of total events sales. Chief executive David Levin expects events' underlying revenue growth to reach 12-14 per cent for the full-year – only slightly slower than the 16.7 per cent underlying growth seen in the first half.
Conditions elsewhere, however, were tougher. Print marketing revenue slumped 34 per cent to £39.4m and management says that declines here have been faster than anticipated. Moreover, after data services' revenue slipped 10.2 per cent to £90m, a strategic review of that business is on the cards.
Broker Numis Securities expects full-year pre-tax profit of £184.3m, giving EPS of 58p (£177.4m and 56.8p in 2011).
UBM (UBM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 643p | MARKET VALUE: | £1.58bn | |
| TOUCH: | 641.5-643p | 12-MONTH HIGH: | 650p | LOW: 407p |
| DIVIDEND YIELD: | 4.2% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 154p* | NET DEBT: | 132% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 474 | 62.2 | 20.5 | 6.3 |
| 2012 | 509 | 70.1 | 22.7 | 6.7 |
| % change | +7 | +13 | +11 | +6 |
Ex-div: 24 Aug Payment: 11 Oct *Includes intangible assets of £1.24bn, or 506p a share | ||||
