According to Informa PLC:
Key Financial and Operating Highlights for enlarged Informa Group:
• Improving Revenue Growth: +3.7% underlying and +41.3% reported, including Penton
• Growing Adjusted Operating Profit: +1.0% underlying and +41.0% reported
• Higher Adjusted Diluted EPS Growth: +12.7% to 24.0p (H1 2016: 21.3p)
• Increased Interim Dividend: up 6.2% to 6.65p (H1 2016: 6.26p)
• Strong Free Cash Flow, On Track for £400m+ in Full Year: £113.8m (H1 2016: £74.2m)
• Robust Balance Sheet following completion of refinancing: Gearing of 2.8x (H1 2016: 2.4x)
• Enhanced Statutory Operating Profit: +28.7% to £182.2m (H1 2016: £141.6m); Statutory Diluted EPS +11.9% to 14.1p (H1 2016: 12.6p)
Continuing Operational Performance and Financial Delivery:
• Global Exhibitions Expansion: Clear benefits of building a portfolio of large-scale international Brands in attractive verticals, combined with continuous product innovation and a positive weighting to the first-half of the year generates strong underlying revenue growth, +11.0%;
• Academic Publishing Resilience: Continued strength in Academic Research Journals, combined with steady trading in Upper Level reference-led Books offsets the challenging market for our small, sub-scale holding in Lower Level textbooks, producing underlying revenue growth of +1.2%;
• Business Intelligence Growth: Improving underlying revenue growth of +1.1%, reflects increased focus on core subscription renewals, positive new product momentum and further traction in the development of contingent revenues;
• Knowledge & Networking Focus: Shift in portfolio balance to the three end markets of Global Finance, Life Sciences and TMT helps ease the decline in underlying revenue to -4.0%. Portfolio focus continues today with the majority purchase by Handelsblatt2 of the German/Swiss domestic conference business, Euroforum. This follows on from previous portfolio changes in Scandinavia, the Netherlands, Russia and a number of other markets;
• Penton Information Services Integration: Effective integration of US-based business ahead of plan; operating and reporting as a single, enlarged Informa Group and on track to deliver £14m net operating synergies in 2018;
• Dividend Increase: Improving operational performance, strong cash generation and confidence in full-year delivery leads to a further increase in our GAP dividend commitment to a minimum of 6% year-on-year growth for 2017, the final year of GAP.
Stephen A. Carter, Group Chief Executive, said: “The Informa Group continues to make steady operational and financial progress in the fourth year of our acceleration programme, whilst effectively integrating US-based Penton Information Services ahead of plan.”
He added: “Our increased Balance and Breadth, improving operational fitness and the benefits of consistent product investment give us confidence that we will meet our financial and operational targets for 2017, including further growth in revenue, earnings, cashflow and dividends.”
