Interim Management Statement

RNS Number : 0384R

Centaur Media PLC

14 November 2012

 



14 November 2012

Centaur Media PLC

Interim Management Statement

Centaur Media plc (LSE: CAU, the "Group"), the business information, events and marketing services group, today issues an interim management statement for the period from 1 July 2012, based on results for the four month period to 31 October 2012, with commentary on trading up to 13 November 2012.

Reported revenues across the Group increased by 14% in the period with EBITDA margins continuing to benefit from recent restructuring initiatives, including those completed in the past four months. Underlying revenues across the Group declined by 4%, reflecting the impact of stronger comparatives and continued market weakness affecting advertising revenues, principally across the financial and marketing sectors.

The Group continues to build strong momentum in growing digital and events revenues, which accounted for 38% and 30% of total revenues in the period, up from 32% and 22% in the same period last year.

Across the Business Publishing division, while the marketing, legal and financial communities continue to see weakness in advertising revenues, the HR and engineering communities have reported good rates of underlying growth. This division continues to benefit from the cost savings arising out of the major rationalisation in 2012. The outlook across Business Publishing for the seasonally stronger second half of the financial year remains relatively uncertain for the Group's advertising-led products. However, this division is well placed to take advantage of any recovery in Centaur's markets.

The Business Information division continues to maintain good rates of underlying revenue growth, with reported revenues up substantially, reflecting the impact of the VBR, Profile and Econsultancy acquisitions, each of which also continues to report good rates of growth. The Econsultancy integration is progressing well.

Underlying revenues across the Exhibitions division grew strongly in the period, with Employee Benefits Live, the National Home Improvement Show and Aidex all performing ahead of expectations and with encouraging re-bookings across all three events.  The Group continues to generate good momentum in building a strong pipeline of new event launches.

Operating cash out flow in the four months to 31 October 2012 was lower than in the same period last year. Net debt to EBITDA at the end of October 2012 was approximately 1.8 times. With earnings and cash flows heavily weighted towards the second half of the financial year, the Group expects the ratio of net debt to EBITDA to reduce by 30 June 2013. Deferred revenues at 31 October 2012 were £13m, 30% ahead of the same period last year.

Geoff Wilmot, Chief Executive, commented:

"We have seen a significant improvement in our revenue profile and cost base at the start of the 2013 financial year, and the business has demonstrated strong momentum in growing its revenues from digital and events. Whilst trading conditions remain challenging in some markets, we are well placed to deliver further growth in 2013 and continue to make good progress towards our medium-term targets. We anticipate trading to be in line with our expectations for the current financial year."

Enquiries

Centaur Media plc	[phone]
Geoff Wilmot, Chief Executive
Mark Kerswell, Finance Director
College Hill	[phone]
Adrian Duffield / Kay Larsen

 

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