Events, publishing and information colossus Informa (INF) only swallowed up rival UBM last June, but the deal significantly enhanced full-year numbers for 2018, adding £613m to the top line. Meanwhile, the underlying business continued to fare well, delivering 3.7 per cent revenue growth. This was buoyed by improvements across all operating businesses, including a 6.7 per cent increase within the largest global exhibitions division to £576m. Academic publishing saw an underlying uptick of 2.2 per cent to £533m, thanks to “solid” journal renewals and investment in open access.
Pre-tax profits were constricted by higher amortisation, acquisition and integration costs. The group has also provided for a £9.1m charge relating to a late tax payment in the UAE, which it is disputing. Earnings comparisons were distorted by the inclusion of a non-cash credit in 2017, stemming from US tax reforms.
That said, net debt, as a consequence of the UBM deal, rose by 95 per cent to £2.68bn, exceeding analysts’ estimates. There’s some comfort in the fact that free cash flow remained strong, at £503m – up by just over a quarter.
Peel Hunt has left its 2019 forecasts unchanged, expecting adjusted pre-tax profits of £819m with EPS of 51.3p, against £650m and 49.2p last year.
| INFORMA (INF) | ||||
| ORD PRICE: | 723.2p | MARKET VALUE: | £ 9.1bn | |
| TOUCH: | 722.8-723.2p | 12-MONTH HIGH: | 870p | LOW: 603p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 37 | |
| NET ASSET VALUE: | 469p* | NET DEBT: | 44% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014** | 1.14 | -31.0 | -7.9 | 17.8 |
| 2015** | 1.21 | 220 | 24.3 | 18.5 |
| 2016** | 1.35 | 178 | 23.6 | 19.3 |
| 2017*** | 1.76 | 268 | 37.7 | 20.5 |
| 2018 | 2.37 | 282 | 19.7 | 21.9 |
| % change | +35 | +5 | -48 | +7 |
| Ex-div: | 25 Apr | |||
| Payment: | 31 May | |||
| *Includes intangible assets of £10.1bn or 808p a share**EPS and DPS restated for one-for-four rights issue in October 2016***2017 restated for accounting standards 'IFRS 15' | ||||
