These were the first results from Informa (INF) since the completion of its mega-merger with peer UBM, creating a global media and events behemoth. As the deal closed on 15 June, it's obviously too early to gauge the impact on trading – and scale benefits – from the combination of the two entities, but the message conveyed was broadly positive. Underlying sales – excluding UBM – were still 4.3 per cent to the good, adjusted operating profits rose 3.3 per cent to £294m, or 1.9 per cent underlying – impressive, given the higher rate of depreciation and currency headwinds in play.
The steep decline in statutory pre-tax profits stemmed largely from one-off acquisition-related costs, totalling a whopping £144m. Still, management is confident about the “increased scale and visibility” offered by the enlarged group, and continues to anticipate underlying revenue growth of over 3.5 per cent for the full year, including UBM’s contribution.
Broker Numis forecasts pre-tax profit of £669m and EPS of 48.3p for 2018 (from £486m and 46.1p in 2017).
| INFORMA (INF) | ||||
| ORD PRICE: | 820p | MARKET VALUE: | £10.3bn | |
| TOUCH: | 819.4-820p | 12-MONTH HIGH: | 870p | LOW: 657p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 24 | |
| NET ASSET VALUE: | 470p* | NET DEBT: | 46% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2017 | 915 | 149 | 14.1 | 6.65 |
| 2018 | 957 | 120 | 10.4 | 7.05 |
| % change | +5 | -19 | -26 | +6 |
| Ex-div: | 9 Aug | |||
| Payment: | 14 Sep | |||
| *Includes intangible assets of £10bn, or 806p a share | ||||
