Euromoney (ERM) enjoyed a broadly positive year to September, though its active approach to portfolio management – engendering three acquisitions and four disposals – rendered the numbers rather complex. While statutory revenues edged up slightly, adjusted revenues dipped to £414m – partly reflecting the sale of the Global Markets Intelligence Division in April.
The group’s underlying results are the most relevant for our purposes. Accordingly, revenues rose 3 per cent to £388m, while pre-tax profits climbed 8 per cent to £101m. Key to this momentum was Euromoney’s pricing, data and market intelligence business, which enjoyed an 18 per cent improvement in underlying profits. Pricing’s performance helped subscription revenues to rise 2 per cent – notwithstanding the dampening impact of Euromoney’s asset management division. Indeed, asset management faced ongoing industry-wide challenges pertaining to investment research. Reassuringly, actions are underway to mitigate these pressures – including the move to take Institutional Investor magazine digital-only during 2018.
Lifted partly by the proceeds from disposals, Euromoney’s net cash position constituted a significant improvement from net debt of £155m a year earlier, leaving it well-placed for further organic and acquisitive expansion.
Broker Numis forecasts cash profits (Ebitda) of £103m for the Sept 2019 year-end, leading to adjusted EPS of 68.6p, against £110m and 74.5p in FY2018.
| EUROMONEY INSTITUTIONAL INVESTOR (ERM) | ||||
| ORD PRICE: | 1,246p | MARKET VALUE: | £ 1.36bn | |
| TOUCH: | 1,242-1,246p | 12-MONTH HIGH: | 1,462p | LOW: 1,100p |
| DIVIDEND YIELD: | 2.6% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 452p* | NET CASH: | £78.3m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2014 | 407 | 101 | 59.5 | 23.00 |
| 2015 | 403 | 123 | 83.4 | 23.40 |
| 2016 | 366 | 33.4 | 17.4 | 23.40 |
| 2017 | 387 | 40.7 | 32.7 | 30.60 |
| 2018 | 390 | 161 | 102 | 32.50 |
| % change | +1 | +296 | +212 | +6 |
| Ex-div: | 29 Nov | |||
| Payment: | 14 Feb | |||
| *Includes intangible assets of £588m or 539p a share | ||||
