So far 2020 has not been easy on the global events industry – Informa (INF) has been no exception. Adjusted operating profit more than halved to £118.6m in the six months to the end of June, as the coronavirus pandemic wiped out more than £1bn worth of physical events revenue scheduled for this year.
Management had at first expected that events in Europe and North America, its largest market, would gradually restart in the summer and then pick up again this month. But a resurgence in infections, local lockdowns and continued travel restrictions has prompted Informa to launch an extended “action plan”.
The scheme aims to push revenues to £1.7bn in 2020, by moving back events to mid to late spring in 2021, reducing cash expenditure, and cutting headcount in North America and EMEA territories. Management believes that this should secure £400m of direct savings and £200m of annualised indirect savings by year-end. Meanwhile, Informa is optimistic that it will be in a positive monthly cashflow position by January 2021, even without physical events – apart from shows in mainland China.
Indeed, in mainland China the group has restarted in-person events, including large shows such as the China Beauty Expo in Shanghai, which attracted more than 100,000 visitors. There is hope then that its other markets could return to regular activity. And with a new “AllSecure” health standard, Informa is certainly gearing up for a new Covid-adjusted environment in the events industry.
The specialist subscriptions and data and content segments proved to be more resilient during the first half. The academic publishing business Taylor & Francis was the only one to grow in the period, with a modest 1.9 per cent increase in sales.
Broker Peel Hunt forecasts adjusted pre-tax profits of £325.3m and EPS of 17.7p in the 2020 full year, compared with £821.4m and 51.3p in 2019.
| INFORMA (INF) | ||||
| ORD PRICE: | 382p | MARKET VALUE: | £ 5.7bn | |
| TOUCH: | 380-381p | 12-MONTH HIGH: | 870p | LOW: 364p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 401p* | NET DEBT: | 31% | |
| Half-year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2019 | 1.41 | 233 | 14.5 | 7.55 |
| 2020 | 0.81 | -801 | -56.9 | nil |
| % change | -42 | - | - | - |
| Ex-div: | na | |||
| Payment: | na | |||
| *Includes intangible assets of £9.4bn or 623p a share | ||||
