Falling advertising rates and internet-inspired consumer indifference have combined to undermine Centaur Media's business in recent years. The company found itself particularly exposed, with leading titles such as Marketing Week heavily reliant on a shrinking advertising market. That has meant more cost-cutting to defend profits and the group booked restructuring charges of £2.3m in these latest results. Acquisition-related costs took a further £2.2m off the bottom line but, on an underlying basis, pre-tax profits rose 23 per cent to £8m, driving EPS up at a similar rate to 4.2p.
The biggest impression was the change in sales mix. Underlying revenues rose 2 per cent, with a 5 per cent decline in print partly offset by a 7 per cent rise in digital. Digital now accounts for 30 per cent of total turnover, with paid-for content becoming more important as advertising falters. That meant that Business Publishing, the segment most exposed to these pressures, saw underlying sales slip slightly after the effect of disposals are stripped out. Business Information, which includes data provider Perfect Information, benefited most from paid-for content, and underlying revenues there increased by 6 per cent to £7.6m. The exhibitions division, including The Business Travel Show and Marketing Week Live, reported double-digit revenues growth in the core business.
Peel Hunt forecasts current year pre-tax profits of £12m and EPS of 6.1p, reflecting the benefits of acquisitions and restructuring efforts.
CENTAUR MEDIA (CAU) | ||||
|---|---|---|---|---|
| ORD PRICE: | 40.5p | MARKET VALUE: | £57m | |
| TOUCH: | 40-41p | 12-MONTH HIGH: | 47p | LOW: 27p |
| DIVIDEND YIELD: | 5.6% | PE RATIO: | 45 | |
| NET ASSET VALUE: | 86p* | NET DEBT: | 6% | |
| Year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 90.4 | 14.5 | 6.6 | 4.20 |
| 2009 | 66.3 | 1.7 | 0.6 | 1.50 |
| 2010 | 59.9 | 2.6 | 1.4 | 1.70 |
| 2011 | 68.3 | -30.3 | -21.2 | 2.00 |
| 2012 | 65.6 | 2.7 | 0.9 | 2.25 |
| % change | -4 | - | - | +13 |
Ex-div: 7 Nov Payment: 7 Dec *Includes intangible assets of £137m, or 96p a share | ||||
