Informa reports rise in half year profit

29th Jul 2014 10:15

Publishing and events company Informa reported a 1.9% rise in half year organic revenue growth to £569.6m as the company overhauled its business.Adjusted operating profit grew 4.5% to £166.7m in the six months ended June 30th, 2014. The dividend was left unchanged at 6.4p.Chief Executive Stephen Carter said the company's strategy 'Measured Change', adopted at the beginning of the year, has enabled the smooth transition in management and ensured trading remained on track. "It has also allowed us to design a growth acceleration plan, including a new divisional operating structure, a strengthened executive management team and a programme for growth and scale," he said. "In the second phase of our strategic review, Informa is focusing on growth opportunities and improving returns across the group. Further details will be provided in the second half but we anticipate additional investment of up to £90m over three years to deliver on our mid-term organic growth objectives. This will be weighted to the Business Intelligence division, where we believe the potential for improvement is greatest." Alongside the results, the group announced the acquisition of Virgo Holdings, which has a portfolio of six major trade shows and conferences, including US exhibition in the Health & Nutrition Vertical, SupplySide West.The firm said the acquisition will complement Vitafoods, its health and nutrition exhibition brand in Europe, Latin America and Asia. "We remain disciplined in our approach to the remainder of 2014, retaining operational focus whilst simultaneously taking further steps to reposition the group to simplify its structure, leverage its scale and deliver future growth," Carter concluded.Shares in Informa were down 1.2% to 484.65p at 09:50 on Tuesday.RD