newsbox.ch/ Informa plc: Interim Results for the -3-

27th Jul 2010 07:01

the policy of the new US administration to reduce its outsourcing expenditure. Robbins Gioia is wholly based in the US and the issues that affected it caused the year on year decline in the Events US results. The rest of our US training operations and our US conference business have improved their profits compared to 2009. Future Prospects Trading conditions remain uneven but the tough decisions that we took in 2009 to manage down cost and reduce the volume of events leave us in a strong position. We anticipate growth in the second half of 2010 driven by a continued improvement across Events and Training and stabilisation of subscription revenues. We are confident in our flexible and balanced business model and expect to deliver a full year result which remains in line with our expectations. Finance Review Revenues for the first half of 2010 were GBP624.0m, 1.9% lower than for the same period in 2009. Adjusted operating profit increased by 4.2% to GBP152.7m, driven by an increase in the adjusted operating margin from 23.0% to 24.5%. The increase in adjusted operating profit margin demonstrates the benefits of our early actions to adapt our cost base to the challenging trading conditions in many of the markets and geographies in which the Group operates. Adjusted and Statutory results In this Finance Review we refer to adjusted and statutory results. The Board believe the adjusted results provide a useful alternative measure to explain the underlying performance and trends across the Group and further details are provided in note 3 of the condensed consolidated financial statements. Translation Impact The Group generates the majority of its revenue overseas, and with most currencies slightly weakening against sterling over the period, there was a decrease to the 2010 revenue and adjusted operating profits over 2009 of approximately GBP8.9m and GBP1.9m respectively. The largest exposure is to the US dollar with approximately 45% of Group revenue generated in USD and currencies pegged to the USD. Each 1 cent movement in the USD to GBP exchange rate has a circa GBP3.5m impact on revenue and a circa GBP1.1m impact on operating profits. Offsetting any negative impact on operating profits are decreases to interest payable and tax payable. For bank debt covenant testing purposes, profit and debt translation is calculated at the average rate of exchange throughout the relevant period. Business segments Revenue and adjusted operating profit by division are set out below together with the respective actual and organic growth rates. +------------+------+------+-------+--------+ |Academic |2010 |2009 |Growth |Organic | |Information | | | | | +------------+------+------+-------+--------+ | |GBPm |GBPm |% |% | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Revenue |141.5 |136.5 |3.7% |5.0% | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Adjusted |45.5 |42.9 |6.1% |6.9% | |Operating | | | | | |Profit | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Adjusted |32.2% |31.4% | | | |Operating | | | | | |Margin | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ +------------+------+------+-------+--------+ |Professional|2010 |2009 |Growth |Organic | |& Commercial| | | | | |Information | | | | | +------------+------+------+-------+--------+ | |GBPm |GBPm |% |% | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Revenue |178.5 |185.6 |-3.8% |-2.9% | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Adjusted |51.6 |53.8 |-4.1% |-3.6% | |Operating | | | | | |Profit | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ |Adjusted |28.9% |29.0% | | | |Operating | | | | | |Margin | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ | | | | | | +------------+------+------+-------+--------+ +---------+------+------+-------+--------+ |Events |2010 |2009 |Growth |Organic | +---------+------+------+-------+--------+ | |GBPm |GBPm |% |% | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Revenue | | | | | +---------+------+------+-------+--------+ |Europe |134.5 |133.7 |0.6% |0.9% | +---------+------+------+-------+--------+ |US |94.7 |107.9 |-12.2% |-9.5% | +---------+------+------+-------+--------+ |Rest of |74.8 |72.6 |3.0% |5.3% | |World | | | | | +---------+------+------+-------+--------+ | |304.0 |314.2 |-3.2% |-1.5% | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Adjusted | | | | | |Operating| | | | | |Profit | | | | | +---------+------+------+-------+--------+ |Europe |25.7 |23.0 |11.7% |11.8% | +---------+------+------+-------+--------+ |US |9.9 |10.9 |-9.2% |-8.6% | +---------+------+------+-------+--------+ |Rest of |20.0 |16.0 |25.0% |35.3% | |World | | | | | +---------+------+------+-------+--------+ | |55.6 |49.9 |11.4% |14.6% | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Adjusted |18.3% |15.9% | | | |Operating| | | | | |Margin | | | | | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ +---------+------+------+-------+--------+ |Group |2010 |2009 |Growth |Organic | +---------+------+------+-------+--------+ | |GBPm |GBPm |% |% | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Revenue |624.0 |636.3 |-1.9% |-0.5% | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Adjusted |152.7 |146.6 |4.2% |5.6% | |Operating| | | | | |Profit | | | | | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ |Adjusted |24.5% |23.0% | | | |Operating| | | | | |Margin | | | | | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ | | | | | | +---------+------+------+-------+--------+ Revenue In the six months ended 30 June 2010, revenue of GBP624.0m is down 1.9% from the GBP636.3m in the same period last year, and down 0.5% on an organic basis for the same period. There were no material acquisitions during the period. The translation impact, mainly that of the US dollar to sterling, decreased revenue by GBP8.9m. Adjusted Operating Profit Adjusted operating profit is calculated after removing certain items (see note 5) not related to the underlying trading operations of the Group. Adjusted operating profit increased by 4.2% from GBP146.6m to GBP152.7m; and increased by 5.6% on an organic basis. The adjusted operating margin increased 1.5 percentage points to 24.5%. The translation impact decreased adjusted operating profits by GBP1.9m. The organic adjusted operating profit increase of 5.6% represents a creditable performance given the challenging trading conditions in which the Group operates. Operating Profit Operating profit increased by GBP24.6m to GBP85.7m from GBP61.1m in the first half of 2009. This includes a decrease in restructuring and reorganisation costs of GBP15.8m and intangible asset amortisation of GBP8.2m. This is partially offset by an impairment charge of GBP5.0m (note 14) and acquisition related costs of GBP0.5m. Net Finance Costs Net finance costs, which consist principally of interest costs net of interest receivable, decreased by GBP9.7m from GBP29.0m to GBP19.3m, mainly as a result of the decline in interest rates and reduction in debt from cash flows generated and the rights issue net proceeds of GBP242m received in May 2009. Profit Before Tax Adjusted profit before tax increased by 13.4% to GBP133.4m from GBP117.6m and (MORE TO FOLLOW) Dow Jones Newswires July 27, 2010 02:01 ET (06:01 GMT)