UBM reports:
Significant strategic progress and performance ahead of expectations
• PR Newswire (PRN) disposal completed - £490m net cash proceeds - £243.7m special dividend
• Allworld Exhibitions (Allworld) acquired for $485m (£392.9m)
• Excellent progress implementing the Events First strategy:
• £82.7m invested in bolt-on acquisitions
• Disposal of the Electronics Media business, Light Reading and Ecobuild
• Exit run rate of £11.5m of savings p.a. from operational initiatives
• Continuing revenue up 12.1% at £863.0m (0.1% at constant currency)
• Events revenue growth of 3.1% on an adjusted underlying basis
• Continuing adjusted operating profit up 19.2% to £234.8m
• Continuing adjusted operating profit margin up 1.6%pts to 27.2% (+1.0%pts excl. pension gain)
• Continuing adjusted attributable profit up 23.4% to £166.3m
• Continuing diluted adjusted EPS up 31.0% to 39.7p (tax rate of 14.0%)
• Free cash flow of £159.6m and cash conversion of 96%
• Year-end net debt at 2.4 times continuing EBITDA
• Final dividend declared of 16.6p per share – total 2016 ordinary dividend of 22.0p per share
Tim Cobbold, CEO of UBM plc said: “During 2016 we made significant strategic progress and delivered performance ahead of expectations."
“We took further steps to focus UBM on the attractive B2B events sector by completing the PRN disposal and, in December, acquiring Allworld. At the same time, we made excellent progress implementing the Events First strategy at an operational level and delivered a strong financial performance ahead of market expectations. In a favourable FX environment, reported revenues grew 12.1%, the operating margin was 1.6% points higher at 27.2% and earnings per share increased by 31.0%."
“While remaining conscious of the global macro-economic and geopolitical uncertainties, in 2017 the Board expects to see higher underlying revenue growth (excluding the impact of further portfolio rationalisation), enhanced by the consolidation of Allworld and the positive impact of odd-year biennials. This growth coupled with Events First initiatives will drive further improvement in the margin and continued strong cash generation.”
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