According to Informa:
KEY HIGHLIGHTS
* Current trading: Consistent performance in the third quarter leads to nine-month reported revenue growth of 6.9% and organic growth of about 2%, ex-events phasing; full-year expectations re-confirmed.
- Academic Publishing: Performance continues in line with the market, alongside ongoing investment in content and technology.
- Business Intelligence: Focus on customer, subscription management and key market verticals delivers further improvement in organic trend; on track to more than halve 2014 decline this year.
- Global Exhibitions: Ongoing strong underlying organic growth from increasingly international portfolio of market-leading Exhibitions.
- Knowledge & Networking: Continued implementation of new strategy, including selective disposals of European Conference businesses; trading consistent during this transition ahead of traditionally busy fourth-quarter trading period.
* 2014-2017 Growth Acceleration Plan (“GAP”): Continued progress on implementing GAP, our multiyear strategy to accelerate growth and improve returns across the Group:
- Investment – Continued implementation of GAP investment programme, with close to 20 projects now underway. Estimated spend (£70-90m) and projected returns unchanged, fully funded through free cash flow.
- Portfolio Management – Exit from Scandinavian conference businesses (Denmark and Sweden) within Knowledge & Networking increases focus on large, Branded, recurring English-language events. Ongoing review of strategic options for remaining Continental European Conference businesses (Germany and the Netherlands).
- Acquisition Strategy – Addition of FIME, a leading provider of healthcare exhibitions in the Americas. This strengthens our growing international business in the Life Sciences vertical and further progresses our strategy to build scale in Global Exhibitions. As we enter 2016, the Division is expected to generate over £100m annual profit, representing more than 25% of the Group, compared with less than 10% five years ago.
- Funding – GAP strategy to retain financial flexibility with a strong balance sheet and competitive financing leads to issue of $250m US Private Placement Notes, extending average debt-maturity and increasing balance sheet flexibility.
Stephen A. Carter, Group Chief Executive, said: “Informa’s continued and improving operational performance and ongoing progress in the implementation of our Growth Acceleration Plan positions the Group to deliver the improvements in operations and earnings targeted for 2015.”
