Interim Management Statement

RNS Number : 6188D

Centaur Media PLC

18 May 2012

 



18 May 2012

Centaur Media PLC

Interim Management Statement

Centaur Media plc, the business information and events group, today issues an interim management statement updating trading since 1 January 2012, based on results for the 10 month period to 30 April 2012, and with commentary on trading up to 17 May 2012.

Total digital revenues increased by 9% and now represent 31% of total revenues, compared to 28% for the same period last year. Total underlying revenues across the Group were 3% ahead of the same period last year, with underlying digital, print and events revenues up 7%, down 3% and up 6% respectively. Despite the continuation of challenging trading conditions, the Group expects to report results in line with its expectations for the current financial year.

Across the Business Publishing division, the anticipated weakness in print advertising revenues principally related to the Marketing Week, Money Marketing and Fund Strategy titles.  All other print titles and all digital titles reported satisfactory revenue growth. The Group continues to actively manage its portfolio and as planned has discontinued a number of low margin events and products within the division. Forward bookings are 10% ahead of the same period last year.

In Business Information, underlying revenues continued to show good rates of growth. The VBR and Profile acquisitions have been integrated and are performing in line with expectations. Deferred revenues are 64% ahead of the same period last year.

In Exhibitions, all events held during the year to date have reported growth in revenues.  The key events that run in the last two months of the year, including Marketing Week Live, have forward bookings 20% ahead of the same time last year.  Forward bookings for events that run in the next financial year are 32% ahead of the same period last year.  The Group is also seeing a strong pipeline of new event launches.

As previously announced, the Group continues to actively manage its cost base. Initiatives over the period from 1 January 2012 to 30 June 2012 are expected to deliver in excess of £2m of annualised cost savings but will result in estimated restructuring charges of £1.5m. The Group will also report exceptional costs related to acquisitions and earn-out payments.

Operating cash flow in the 10 months to 30 April 2012 was £1m ahead of the same period last year. Net debt at 30 June 2012 will reflect the impact of the Profile acquisition and will also be impacted by the cash costs of the restructuring initiatives.  However, with continued focus on working capital across the Group, leverage is anticipated to be below one times EBITDA at 30 June 2012. Deferred revenues at 30 April 2012 were 12% ahead of the same time last year.

The Group traditionally generates in excess of 50% of annual EBITDA in the final quarter of its financial year. April results were in line with forecast and while the Business Publishing division continues to see some volatility in revenues, relative to last year the Group has improved visibility over the last two months trading.

Geoff Wilmot, Chief Executive, commented:

"We are encouraged by the progress made towards growing digital revenues and increasing margins. We have good momentum and a strong pipeline of potential acquisitions as we approach the new financial year.

"As anticipated, we have seen some weakness in print revenues but this has been offset by good growth across our digital and events revenues.  Furthermore our continued programme of improving our operational efficiencies has enabled us to grow our underlying margins.

"Despite the continuation of challenging trading conditions, the Group expects to report results in line with its 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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