Reported full-year revenue for Euromoney Institutional Investor (ERM) – buoyed by the impact of acquisitions – came in ahead of management expectations, but it was flat on an underlying basis, reflecting growth of around 4 per cent in the pricing, data and market intelligence (PDMI) business – which constituted almost half of the overall top line – tempered by a 4 per cent decline for the asset management division. PDMI benefited from strong subscription revenue growth of 10 per cent in Fastmarkets – Euromoney’s price reporting agency, which was recently selected as the London Metal Exchange’s partner to develop the lithium benchmark.
Meanwhile, asset management, which made up more than a third of total revenues – and which has endured ongoing structural and cyclical challenges – was designated as ‘held for sale’ within these results. The strategic review that precipitated the planned sale is progressing well, but there was precious little detail about the probable impact of the move on group performance or the underlying cost base, but it's likely that we will get some idea about the valuation in the early part of 2020.
Numis expects adjusted EPS of 76.7p for FY2020, against 77.6p in FY2019.
| EUROMONEY INSTITUTIONAL INVESTOR (ERM) | ||||
| ORD PRICE: | 1,312p | MARKET VALUE: | £1.43bn | |
| TOUCH: | 1,306-1,312p | 12-MONTH HIGH: | 1,510p | LOW: 1,118p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 71 | |
| NET ASSET VALUE: | 481p* | NET CASH: | £50.1m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2015 | 403 | 123 | 83.4 | 23.4 |
| 2016 | 366 | 33.4 | 17.4 | 23.4 |
| 2017 | 387 | 40.7 | 32.7 | 30.6 |
| 2018 (restated)** | 245 | 107 | 60.8 | 32.5 |
| 2019 | 256 | 29.5 | 18.5 | 33.1 |
| % change | +5 | -72 | -70 | +2 |
| Ex-div: | 28 Nov | |||
| Payment: | 13 Feb | |||
| *Includes intangible assets of £405m, or 371p a share **2018 comparatives have been restated to reflect two prior-year tax exposures and discontinued operations relating to asset management | ||||
