Excerpts from the report:
Overview
The Group reported results that show good profit growth, albeit at a slower rate than initially anticipated, in what have remained challenging economic conditions. Trading was stable in the last two months of the 2013 financial year. This reflects improved conditions across those markets that proved volatile for much of 2013, but also a sharper focus across the Group and with much greater emphasis on the speed of change and delivery of results.
Adjusted EBITDA increased by 10% to £12.9m (2012: £11.7m). Adjusted profit before tax increased by 8% to £8.6m (2011: £8.0m) with adjusted EPS up 7% to 4.5p (2012: 4.2p). The Board is recommending a final dividend of 1.575p per share, giving a full year dividend of 2.4p (2012: 2.25p). The 7% increase in the full year dividend reflects the Board's confidence in the future prospects of the Group.
While Centaur has made significant progress in re-engineering the business over the last two years, the management changes made in May 2013 reflect the need to accelerate the Group's delivery of the strategic objectives. These strategic objectives are to build market-leading positions in selected high growth markets, to improve the quality of the revenue streams by growing revenues from digital, paid-for content and events, and to leverage scale to deliver sustainable growth in adjusted EBITDA margins and cash flow.
The refocus around four market segments - Marketing, Professional, Financial and Consumer - will facilitate effective delivery and execution of revenue and cost synergies, strengthen further initiatives to increase the proportion of revenues generated from digital, paid-for content and events, and allow the business to exploit fully the opportunities presented by the five acquisitions completed since July 2011.
The Group has also further strengthened the efficiency and scalability of its central departments and made significant back office investment. This combined with a new focus on the Group's markets and customers will provide for an enhanced ability to realise synergistic opportunities on a more flexible cost base.
The process to appoint a Chief Executive Officer is continuing and the Board anticipates making an announcement in due course.
Mark Kerswell, Interim Chief Executive, commented:
"We have continued to improve our revenue and earnings profile as well as accelerate the delivery of our strategic objectives.
"We now have a sharper focus on markets and customers and a strong pipeline of new digital platforms and event launches. We are better placed to exploit fully the numerous opportunities across the Group.
"Our digital, subscription and events businesses are growing well, whilst our print, advertising funded businesses are stable. With deferred revenues up 27%, the outlook for 2014 is positive."
