UBM says: UBM’s trading in the fourth quarter has been as anticipated and we expect 2013 full year reported revenues to be approximately £800m, in line with market expectations. With the robust performance of our large events in the fourth quarter, and Marketing Services delivering a margin of approximately 10%, we expect our Group operating profit margin to be at the top of the 22-23% guidance range. We continue to expect fully diluted adjusted EPS from continuing operations to be about 53-54p.
Outlook
Reported Group revenues for 2014 will reflect the devaluation of our major trading currencies relative to 2013 (See Footnote 1) given over 85% of our revenues are generated in currencies other than the Pound.
Events reported revenues and margin will also reflect reduced revenues from “even year” biennial events compared with our strong “odd year” biennial contribution, continued expansion in new growth markets (including geo-adaptations and new launches), investment in the exhibitor and visitor experience and improvements in health and safety standards. These factors, together with the impact of venue space limitations at a number of our largest shows and growth shifting to a broader base of China and other Emerging Markets, will result in margin for the Events segment of about 30%. Reported revenues of Marketing Services, which are now largely aligned with our events communities, will reflect the discontinuations and disposals made in 2013. We continue to target a 10% margin in Marketing Services. At PR Newswire we anticipate continued stable margins.
We have been investing in our corporate management team and infrastructure to support future growth, including the new finance ERP system which will be rolled out during 2014. Group operating profit margin in 2014 is expected to be better than 2012, the last “down” biennial year, and from 2015 we anticipate margin expansion through improved efficiency.
PA Group disposal of MeteoGroup
PA Group, the parent company of the Press Association, in which UBM has an investment of 17%, has announced today that it has signed an agreement to sell its weather forecasting business MeteoGroup to global growth investment firm General Atlantic for cash consideration of €190m. The transaction is subject to German competition clearance and is expected to complete in early 2014, with 75% of the consideration payable on completion with the balance payable one year after completion. PA Group is expected to report a profit on disposal of approximately £125m.
UBM will account for its share of such profit as an exceptional gain at the time of completion. This gain is expected to offset our total exceptional restructuring charges for 2013, which include both the charges described at the interim results, as well as additional restructuring costs relating to the installation of the ERP finance system.
