Informa releases trading update

Informa Plc, an international academic markets, B2B markets and digital services group, published a trading update ahead its Annual General Meeting last week, confirming strong year-on- year growth and further progress on its Growth Acceleration Plan 2 (“GAP 2”).

Stephen A. Carter, group chief executive, Informa, said: ”The Informa Group is delivering accelerating growth in revenues, profits, earnings and cashflows, with a strong balance sheet and increasing shareholder returns. This enables us to increase our guidance for 2023 and create further opportunities for growth and acceleration in 2024 and beyond.”

Informa Plc report the trading highlights as follows:

• Strong trading...Group underlying revenue growth of 24.5% in the first five months of the year, reflecting consistent growth in Academic Markets (3.0%) and further strong growth in B2B Markets (31.2%), including strong performances from all three B2B businesses: Informa Markets (+43.5%), Informa Connect (+19.2%) and Informa Tech (+8.3%);
• Increased market guidance...Strong underlying performances combined with portfolio additions delivers 7% increase in revenue guidance (+£200m to between £2.95bn and £3.05bn) and a 10% increase in adjusted operating profit guidance (+£70m to between £750m and £790m); Revenues from streamlined portfolio above 2019 pre-COVID levels, a year in which the since-divested Informa Intelligence business accounted for c.12% of revenues;
• B2B strength and value...Following a decade of investment, expansion and growth acceleration, we have built a powerful portfolio of major B2B brands in 20+ growth verticals and 10+ major geographic regions. Having maintained investment in our brands, our data, product and customer relationships during COVID, we are now seeing strong demand for our B2B services around the world. This includes in Mainland China, where we recently ran two of our major brands in Beauty (China Beauty) and Hospitality (Hotelex) attracting c.5,000 exhibitors and 250,000+ attendees;
• Capital allocation discipline...Following the divestment of Informa Intelligence for c.£2.5bn in 2022 (sold for average multiple 28x EV/EBITDA), we are returning £1bn to shareholders, resuming ordinary dividends and redeploying capital into targeted acquisitions. This includes Tarsus and Winsight (acquired for average post-synergy multiple of c.9x EV/EBITDA), which have expanded our presence in key regions such as the US, the Middle East and Asia, and strengthened our position in attractive B2B market categories including Healthcare, Packaging, Aviation and Foodservice;
• Accelerating shareholder returns...Strong earnings growth and high levels of cash conversion are delivering accelerating returns for shareholders, with £650m+ total cash returns expected in 2023, including strong double-digit growth in ordinary dividends (minimum payout ratio of 40% of adjusted EPS) and further share buybacks (c.£785m of £1bn programme completed to date);
• Future growth and acceleration…Our GAP 2 programme, which is beginning to deliver, will continue through 2024, when we anticipate further volume and value growth and increasing cash flow strength, supporting shareholder returns and further targeted acquisitions, whilst retaining a strong underlying balance sheet.

The full trading update can be seen here.