According to UBM plc:
Strategic progress and performance on track
* PR Newswire (PRN) disposal completed - £490m net cash proceeds
o £243.7m special dividend paid to shareholders on 8 July
* Continued progress with execution of Events First strategy:
o Invested £61.4m in acquisitions and announced disposal of Electronics Media portfolio
o £10.2m of portfolio rationalisation
o Operational initiatives driving performance improvement
* Continuing revenue up 8.0% at £380.0m – benefiting from 6.5% currency tailwind
* Continuing revenue up 1.0% on an adjusted underlying basis*, comprising:
o Events revenue growth of 1.3%
o Other Marketing Services (OMS) revenue down 0.4%
* Continuing adjusted operating profit* up 24.5% to £93.4m
* Continuing adjusted operating profit margin* +3.3%pts to 24.6%. (Pre strategic opex +2.4%pts)
* Free cash flow of £81.6m and cash conversion* of 114%
* Net debt (adjusted for special dividend payment on 8 July) at 1.2 times EBITDA
* Continuing diluted adjusted EPS* up 31.5% to 14.2p
* Interim dividend declared of 5.4 pence per share
* Full year trading outlook unchanged
Tim Cobbold, CEO of UBM plc said: “The sale of PRN was the final major step in the transformation of UBM into a focused events business, following which more than 80% of revenues are now generated from Events. Going forward UBM’s performance will increasingly reflect the attractive characteristics of the events industry, and we continue to see high-quality acquisition opportunities to strengthen further the portfolio.
“Our performance in the first half was in line with our expectations and the business is well-positioned for a strong second half. Good progress continues to be made in the execution of the Events First strategy.
“With more than 80% of the Group’s revenues generated in the US and Emerging Markets and less than 10% from the UK we expect little direct impact from Brexit and a benefit from the stronger dollar.
“Our trading outlook for the year remains unchanged, with further FX benefits expected.”
