Euromoney confident as it keeps head above water
Business information provider Euromoney Institutional Investor issued its results for the year ended 30 September on Thursday, reporting a 3% decline in total revenue to £414.1m.
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The FTSE 250 company said its adjusted operating profit was 3% higher at £110.7m, with an adjusted operating profit margin two percentage points higher at 27%.
Adjusted profit before tax improved 3% to £109.2m, with its adjusted diluted earnings per share rising 6% to 81.3p.
On an underlying basis, revenue was ahead 3% at £388.4m and profit before tax rose 8% to £100.6m, while on a statutory basis, revenue eked out gains of 1% to £390.3m, and diluted earnings per share surged to 187p from 37.9p.
Net cash stood at a positive £78.3m at year-end, swinging from net debt of £154.6m a year ago, with the board declaring a final dividend per share of 22.3p, up 2% from the 21.8p paid 12 months ago.
On the operational front Euromoney reported an “encouraging” overall performance with a year of underlying growth, reporting strong growth in its pricing, data and market intelligence segment.
It said its good underlying revenue growth came from events across all segments, with action taken to mitigate headwinds in the asset management segment.
A continued decline was seen in advertising revenue, with Euromoney saying that now accounted for just 9% of total revenue.
The board said it undertook “active” portfolio management through the year in line with its strategy, making three acquisitions and four disposals, before selling Mining Indaba post year-end.
“2018 was a successful year for Euromoney, delivering good growth in underlying revenue and profit as forecast at our March 2016 investor day,” said Euromoney chief executive officer Andrew Rashbass.
“Our pricing, data and market intelligence segment recorded a very strong performance and there was good underlying growth in events across all segments.”
Rashbass said Euromoney was making steady progress towards a 3.0 business model, guided by its clear strategy of investing in semi-opaque markets where mission-critical information was hard to find, transforming its operating model, and actively managing its portfolio.
“This development, combined with our strong balance sheet underpins our confidence in further progress in the year ahead.”