The negative sentiment surrounding Ascential’s (ASCL) Cannes Lions marketing festival has been largely dispelled by a strong set of half-year numbers. Despite a fall in the number of delegates from some of the world’s largest marketing agencies, like-for-like revenue at the event – which contributed more than a quarter of turnover for the period – rose by 7 per cent to £62.9m.
Customer retention is better elsewhere. The group’s largest single contributor to annual revenue is fashion industry market intelligence service WGSN, where retention rose slightly to 93 per cent. The information services division recorded organic revenue growth of 5.2 per cent, which was augmented by the first six-month contribution from data specialist One Click Retail and four months from marketing services business MediaLink.
Ascential’s reported numbers were enhanced by the absence of IPO costs, lower acquisition spending and foreign exchange movements. The latter raised the adjusted cash profit margins at the events segment to 47 per cent, meaning adjusted cash profit rose 9 per cent to £64.5m. Information services has continued to absorb significant restructuring investment, stunting profit growth.
Broker Numis expects pre-tax profit and EPS for the full year to December 2017 of £95.3m and 17.7p, respectively (from £65.2 and 15.5p in 2016).
| ASCENTIAL (ASCL) | ||||
| ORD PRICE: | 349p | MARKET VALUE: | £1.4bn | |
| TOUCH: | 348.5-349.6p | 12-MONTH HIGH: | 364p | LOW: 237p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 38 | |
| NET ASSET VALUE: | 91.9p* | NET DEBT: | 57% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2016 | 176 | 8.2 | 1.6 | 1.5 |
| 2017 | 222 | 42.7 | 8.0 | 1.8 |
| % change | +26 | +421 | +400 | +20 |
| Ex-div: | 31 Aug | |||
| Payment: | 29 Sep | |||
| *Includes intangible assets of £692m, or 173p a share | ||||
