Informa profits up despite flat sales

22nd Feb 2011 07:18

Specialist business publisher and trade events group Informa posted a sharp rise in profits in the year to 31 December despite flat revenues as it adjusted to the tough climate by consolidating publications, getting rid of marginal ones and reducing the scale of some events.Informa, whose publications include the shipping journal Lloyd's List, saw pre-tax profits rise to £125m from £96.5m the previous year on revenues that rose to £1.23bn from £1.22bn.Digital revenues now account for 74% of publishing sales, up from 72% the previous year, Informa said. The publishing business accounts for 55% of revenues.Informa said it continues to focus on raising the quality of earnings in its events division by increasing the number of larger, more resilient events. The company added to its emerging market growth during 2010 with new events in Brazil and other emerging markets. Revenue generated from outside the US and Europe now accounts for 23% of the business, up from 21%.Informa said its Academic Information division had a strong year. "We remain sensitive to the demands of an academic environment with significant budgetary pressure and we have worked closely with our customers to secure 2011 revenue," the company said.The Professional and Commercial Information division, which provides books and journals to the healthcare, pharmaceutical, financial services, maritime, commodities, telecoms and legal sectors, experienced a lag in subscriptions, particularly in the financial sector. However, revenues grew in the second half and are expected to continue doing so in 2011.The Events and Training Division witnessed improved economic conditions in Asia, Latin America, Australia, Germany and Scandinavia. The US remained tougher but there were definitely signs of an improved recovery towards the end of the year, Informa said."After the economic difficulties experienced over the last two years, the Group is in a strong place to deliver organic growth," said chief executive Peter Rigby. "We are investing in new products, recruiting and enhancing our sales teams and geo-cloning our leading events."He said 2011 has started well.