Interim Results

Informa Group PLC
09 September 2002

Monday 9 September


Informa Group plc

Interim Results for the Six Months To 30 June 2002

Business Review

- First half profit before tax, exceptional items and amortisation of goodwill
  28% lower at £16.2m on turnover down 15% to £151m.

- Turnover, profit and margin all strongly ahead of second half 2002

- Resilient performance from major events

- Subscription revenue grew by 3% and represents nearly one-third of total
  revenue

- Profit growth in Finance and Insurance and Life Sciences

- Dividend unchanged at 2.66pence per share


Informa Group's Chairman Peter Rigby commented:

'The first half of 2002 has seen a stabilisation in market conditions with a
significant recovery in profits and operating profit margin since the second
half of 2001. We continue to manage our cost base closely, as well as ensuring
we exploit our brands to their full potential.


The Board remains confident about Informa's future and believe that the Group is
ideally positioned to benefit from any recovery in our markets.'


Enquiries

Peter Rigby/David Gilbertson/Jim Wilkinson                   020 7017 4302
Informa Group plc

Fiona Piper                                                  020 7379 5151
The Maitland Consultancy

Results

Turnover at £151million was 15% below the comparable period last year
(£179million) while operating profits before goodwill amortisation were 24%
below at £20.1million (2001: £26.6million). However, vigorous and ongoing
management of costs ensured there was only a modest decline in the operating
margin from 14.8% to 13.3%.


Profit before tax (excluding goodwill amortisation and exceptional items) was
28% lower at £16.2million (2001: £22.6m). These figures are considerably ahead
of the second half of 2001 which saw turnover of £144million, and a profit
before tax (excluding goodwill amortisation and loss on disposal of a
subsidiary) of £7.5million. The first half 2002 figures do include the results
of the important 3GSM event, but even excluding this there is an underlying
margin recovery and significant profit growth compared with the second half of
2001.


Adjusted earnings per share were 31% lower at 8.70pence (2001:12.62 pence) and
we will be paying an interim dividend of 2.66pence per share (2001:2.66 pence)
on 11 November 2002 to shareholders on the register on 11 October 2002.

Operational Review

i. Overview

Against a difficult trading background it has been important to manage our cost
base proactively to counter the effects of reductions in some of our revenue
streams. This is an ongoing process and since the beginning of 2001 we have
reduced our total workforce by 20% on a like for like basis, at a cost of
£6.4million. This measure, along with a number of other cost saving initiatives,
is saving us in excess of £20million a year.


Subscriptions, our most resilient revenue stream accounting for 31% of total
group sales, grew by 3%. However, compared with the first half of 2001
advertising, sponsorship, exhibition and delegate revenues are down a combined
24%.


Although advertising income only accounts for 12% of total Group revenue the
slowdown in advertising spend has affected our Maritime business in particular,
which traditionally derives more than a third of its revenues from advertising.
Tight cost control and some product mergers and rationalisations have helped
offset, but not fully compensated for, the reduction in advertising income. We
continue to address this portfolio actively to ensure that we maintain proper
levels of investment in those market-leading products that we expect to rebound
strongly and quickly in an advertising upturn. At the same time we continue to
take action to merge, suspend or close titles we judge can only prosper in
strong market conditions.

Our Life Sciences and Finance and Insurance areas grew by 29% and 7%
respectively compared with the first half last year and we have seen profit
growth in most of our business sectors compared with the second half of 2001.

ii. Highlights

The 3GSM Conference held in February, which is the Group's largest event and the
rallying point for the mobile phone industry, maintained its profits despite a
decline in delegate numbers. This was as a result of continuing growth in
sponsorship and exhibition income from the event and effective cost control.
Encouragingly, pre-booked exhibition space for the 2003 event has already
renewed at above 80% of this year's final level to date.


The Bluetooth Congress in June saw increased profit over 2001 due to higher
exhibition revenue and good cost control more than offsetting lower delegate
numbers. Pre-bookings of exhibition space at 84% of this year's level promise
another successful event next year. In addition the Bluetooth Special Interest
Group has awarded us the contract for the Bluetooth Developers Conference in the
United States in December. This first event will be profitable and it also
provides us with the opportunity to build a new annual in the United States to
complement our European events.


Our Life Sciences business, buoyed by the acquisition of BioTechniques last year
is performing well. BioTechniques magazine itself has exceeded our revenue and
profit expectations and is rapidly expanding its European edition. The
conference business has also done well with very successful European events in
Drug Discovery, Infotech Pharma and Biochips alongside established US based
events.


The flagship Drug Discovery Technology conference (which was held in Boston in
August) and is the Group's second most profitable event, attracted more than
1,100 delegates and will show profit growth of about 7% over last year. The
event has already secured 97% exhibition renewals for 2003.


Geographically our conference businesses in the US, France, Sweden and Brazil
have all increased profitability in the first half of 2002 although those in
Holland, UK and Germany have slowed somewhat as economic slowdown has hit those
countries. It is part of our strategy and a real strength to be diversified
geographically as well as by market sector and product line.


Our Dutch publishing businesses performed extremely well with profit growth of
18%. However our Dutch University training business, O&O, which made £1million
in the first half of 2001, was closed as highlighted in our 2001 final results
announcement. The closure costs of £0.5million are shown as an exceptional item
in the profit and loss account and the ongoing activities of this business have
now been transferred to the University of Amsterdam.


Whilst we have yet to see much benefit from the Asian recovery we have continued
to expand into China largely through conferences. To this end we have entered
into a joint venture with the Xinhua Financial Network, which is part of the
Xinhua News Agency, to develop finance and banking based conferences and courses
for China.


The Finance and Insurance division has performed strongly to grow year on year
by 7% despite the upheavals in the capital markets. Around 80% of the division's
revenues are from subscriptions, the majority of which are electronic. The
acquisition of MCM last year is performing in line with expectations and has
given us the leading position in fixed income securities commentary and
analysis. We have radically improved margins in this business through tight cost
control and this has helped the overall division's margin to grow from 13.3% to
14.7%.


Subscription renewal rates are, on average, 80% not just in Finance but
throughout our business. Since subscription income is around one third of our
total revenue this provides a very secure platform for Informa to add on other
revenue streams which are more highly operationally geared.


The percentage of total revenue the Group derives from electronic publishing is
continuing to grow. For this six month period it stands at 19% of total Group
turnover compared to 17% for the whole of 2001 and 15% for the equivalent six
month period last year. Much of this revenue is subscription based and is
renewing at rates even higher than our hard copy subscriptions.


iii. New Products

It is important for a niche information business like Informa to continue its
new product development programme. Fortunately development costs are relatively
low especially if we are migrating hard copy to electronic media or developing
supplements to existing publications.


In Life Sciences, as well as continuing the successful development of the
European edition of BioTechniques, we are planning two major new magazine
launches in the fields of pre-clinical trial scientific research and
biopharmaceutical technology.


In Finance & Insurance, we have also just launched Analyser, which is an
electronic version of our US insurance company review product, while in Maritime
the second half will see the launch of Vigilance, a maritime security product
which provides Governments and defence agencies with up to date information on
ship movements and trading patterns, ownership and related data.


The second half of 2002 will also see a number of new newsletters launched in
our Commodities & Energy division.

Strategy

Our strategy is to be a major supplier of niche business information and to
exploit our strong brands in the various market sectors in which we operate.
Accordingly we intend to continue to operate over a diverse number of market
sectors, using a variety of media and in a number of geographical regions.
Through this we intend to continue to develop a business which is broadly based
enough to withstand a downturn, but has enough elements which are highly
operationally geared such as advertising and delegate revenues which will
rebound strongly and prosper in an upturn. We remain committed to ensuring the
business produces high levels of product innovation as this is the main driver
of organic growth in better times. In addition we will continue to make suitable
acquisitions to help us build brand leading market positions.

Outlook

The last eighteen months have been challenging for media businesses. We have
successfully managed our profitability through close cost control alongside
which we have done some necessary product rationalisation. Our goal has been to
maintain our market leading positions, accepting that this may mean lower
margins at this low point in the economic cycle. We are also pleased by the
resilience of our subscription publication portfolio and by that of our major
events.


Whilst there are as yet no real signs of an upturn in the markets we serve, our
business has rebounded well from the repercussions of international terrorism
which so affected last year's second half. Many of our businesses are highly
operationally geared and the potential benefits in an upswing are significant.
One extra delegate registration to each of our conferences is worth over
£1million in additional profit and more than 50% of each incremental £1 of
advertising revenue falls through to the bottom line.


With this in mind and in a business which has excellent cash generation
characteristics we remain confident about Informa's future and accordingly we
are retaining this year's interim dividend at the same level as last year.


Consolidated profit and loss account

For the period ended 30 June 2002

                                                                             2002              2001              2001
                                                                                      (As restated)     (As restated)
                                                                        Half year         Half year             Total
                                                                        unaudited         unaudited
                                                          notes              £000              £000              £000

Turnover - continuing operations                              2           151,464           178,896           322,853

Operating profit before goodwill amortisation
Continuing operations                                         2            20,084            26,558            38,091
Goodwill amortisation                                                     (5,551)           (4,602)           (9,959)
Goodwill impairment                                                             -                 -           (4,288)
                                                                          (5,551)           (4,602)          (14,247)

Operating profit - continuing operations                                   14,533            21,956            23,844
Exceptional item                                              3             (525)                 -             (838)
Profit on ordinary activities before interest                 2            14,008            21,956            23,006
Net interest payable                                                      (3,884)           (3,968)           (7,977)
Profit on ordinary activities before tax                                   10,124            17,988            15,029
Tax on profit on ordinary activities                          4           (5,159)           (7,179)           (9,838)
Profit on ordinary activities after tax                                     4,965            10,809             5,191
Minority interests - equity                                                    24               142              (96)
Profit for the financial period attributable to                             4,989            10,951             5,095
shareholders
Equity dividends paid and proposed                                        (3,412)           (3,886)          (10,184)
Profit / (loss) for the financial period                                    1,577             7,065           (5,089)
Dividends per share                                                         2.66p             2.66p             7.60p
Earnings per share
Earnings per share (basic)                                    5             3.92p             8.89p             4.07p
Earnings per share (diluted)                                  5             3.92p             8.64p             4.03p
Adjusted basic earnings per share                             5             8.70p            12.62p            16.12p


Consolidated statement of total recognised gains and losses

For the period ended 30 June 2002

                                                                             2002              2001              2001
                                                                                      (As restated)     (As restated)
                                                                        Half year         Half year             Total
                                                                        unaudited         unaudited
                                                                             £000              £000              £000

Profit for the financial period                                             4,989            10,951             5,095
Currency translation differences on foreign currency net                    (254)             2,597                17
investments and borrowings
Total gains and losses recognised relating to the period                    4,735            13,548             5,112


Consolidated balance sheet

At 30 June 2002

                                                                             2002              2001              2001
                                                                                      (As restated)     (As restated)
                                                                          30 June       31 December           30 June
                                                                        unaudited                           unaudited
                                                                             £000              £000              £000
Fixed assets
Intangible assets                                                         169,825           174,396           188,432
Tangible assets                                                            27,888            28,292            22,123
Investments                                                                 4,462             4,109             4,066
                                                                          202,175           206,797           214,621
Current assets
Stocks and work in progress                                                 9,911             6,558             7,212
Debtors                                                                    54,168            61,274            71,037
Cash at bank and in hand                                                    2,155             4,102             1,853
                                                                           66,234            71,934            80,102
Creditors: amounts falling due within one year                          (109,507)         (126,309)         (124,802)
Net current liabilities                                                  (43,273)          (54,375)          (44,700)
Total assets less current liabilities                                     158,902           152,422           169,921
Creditors: amounts falling due after more than one                      (120,253)         (117,192)         (120,261)
year
Provisions for liabilities and charges                                    (2,143)             (828)             (686)
Minority interests                                                          (187)             (206)              (76)
Net assets                                                                 36,319            34,196            48,898
Capital and reserves
Called up share capital                                                    12,818            12,787            12,785
Share premium account                                                     123,103           122,334           122,304
Special reserve                                                                 2                 2                 2
Other reserve                                                              37,398            37,398            37,398
Profit and loss account                                                 (137,002)         (138,325)         (123,591)
Surplus on shareholders' funds - equity                                    36,319            34,196            48,898


Consolidated cash flow statement

For the period ended 30 June 2002

                                                                             2002              2001              2001
                                                                          30 June           30 June       31 December
                                                                        unaudited         unaudited
                                                          notes              £000              £000              £000

Cash inflow from operating activities                         6            19,017            15,745            41,076
Return on investments and servicing of finance                            (3,813)           (3,937)           (6,581)
Taxation                                                                  (1,014)           (3,728)          (11,145)
Capital expenditure                                                       (2,981)           (6,218)          (15,489)
Acquisitions and disposals                                                (3,746)          (58,326)          (59,262)
Equity dividends paid                                                     (6,289)           (6,438)           (9,825)
Cash inflow/(outflow) before financing                                      1,174          (62,902)          (61,226)
Financing                                                                     (7)            62,526            61,454
Increase / (decrease) in cash in the period                                 1,167             (376)               228


Reconciliation of net cash flow to movement in net debt

For the period ended 30 June 2002

                                                                             2002              2001              2001
                                                                          30 June           30 June       31 December
                                                                        unaudited         unaudited
                                                          notes              £000              £000              £000

Increase / (decrease) in cash in the period                                 1,167             (376)               228
Cash outflow/(inflow) from decrease/(increase) in                             764           (9,774)           (8,393)
debt financing
Change in net debt resulting from cash flows                                1,931          (10,150)           (8,165)
Translation differences                                                   (1,777)               673               714
Movement in net debt in the period                                            154           (9,477)           (7,451)
Net debt at the start of the period                           7         (118,832)         (111,381)         (111,381)
Net debt at the end of the period                             7         (118,678)         (120,858)         (118,832)


Notes

1. Basis of preparation

The financial statements for the six months ended 30 June 2002, which are
unaudited, have been prepared on the basis of the accounting policies set out in
our 2001 Annual Report, except that FRS 19 'Deferred Tax' has been adopted. The
effect of this change in accounting policy is disclosed in note 4.

2. Segmental analysis

Underlying operating profit in the segmental analysis excludes the amortisation
of goodwill.

                                                                   Turnover        Underlying operating profit / (loss)
Analysis by market sector               2002            2001           2001           2002           2001          2001
                                     30 June         30 June          Total        30 June        30 June         Total
                                   unaudited       unaudited           £000          unaudited      unaudited      £000
                                        £000            £000                          £000           £000               
                                                       
                                        

Finance and Insurance                 39,717          41,202         82,621          5,838          5,478        10,347
Telecoms and Media                    34,677          50,882         73,866          7,879         10,320        10,910
Law and Tax                           25,148          29,210         54,328          2,587          3,900         5,283
Maritime, Trade and                   22,595          28,609         52,484            364          3,447         4,531
Transport
Life Sciences                         13,240          12,383         26,515          2,061          1,595         3,846
Commodities and Energy                15,550          15,616         31,880          1,707          2,250         3,717
Other                                    537             994          1,159          (352)          (432)         (543)
                                     151,464         178,896        322,853         20,084         26,558        38,091


                                                                                        Profit / (loss) before interest
Analysis by market sector                                                            2002            2001          2001
                                                                                  30 June         30 June         Total
                                                                                unaudited       unaudited          £000
                                                                                     £000            £000               
              
                                                                                     

Finance and Insurance                                                               3,661           3,813         6,487
Telecoms and Media                                                                  7,115           9,753         7,458
Law and Tax                                                                         1,590           3,314         2,744
Maritime, Trade and Transport                                                       (301)           2,624         2,079
Life Sciences                                                                       1,529           1,143         2,607
Commodities and Energy                                                                766           1,763         2,227
Other                                                                               (352)           (454)         (596)
                                                                                   14,008          21,956        23,006

3. Exceptional item

The exceptional item represents the expected net cost arising on the closure of
a Dutch subsidiary. The 2001 exceptional item represents the loss on disposal of
a subsidiary undertaking for amounts due from the purchaser of a subsidiary sold
in 2000 which are unlikely to be received.


4. Taxation

The underlying worldwide operating tax rate for the Group, after removing the
effect of goodwill amortisation and exceptional items, is 31% (2001 half year
restated: 32%). However, due to goodwill amortisation and the exceptional item,
together with the impact of FRS 19, the effective worldwide tax rate is 50%
(2001 half year restated: 40%).

                                                                2002               2001               2001
                                                                          (As restated)      (As restated)
                                                           Half year          Half year              Total
                                                           unaudited          unaudited
                                                                £000               £000               £000

United Kingdom corporation tax                                   828              3,805              5,346
Overseas tax                                                   2,770              3,198              4,139
Current tax                                                    3,598              7,003              9,485
Deferred tax                                                   1,561                176                353
                                                               5,159              7,179              9,838

Adoption of FRS 19 has required a change in the method of accounting for
deferred tax. As a result the comparative figure for tax on profit on ordinary
activities has increased by £176,000 for the six months to 30 June 2001 and
£353,000 in the year to 31 December 2001. This is primarily a result of
providing for deferred tax on consolidation adjustments. The impact of adopting
FRS 19 on the results for the six months to 30 June 2002 is an increase in the
tax charge of £1,561,000.

5. Earnings and adjusted earnings per share

In order to show results from operating activities on a comparable basis, an
adjusted earnings per share has been calculated which excludes amortisation of
goodwill and exceptional items.

                                                                2002               2001               2001
                                                                          (As restated)      (As restated)
                                                           Half year          Half year              Total
                                                           unaudited          unaudited
                                                                £000               £000               £000

Profit for the financial period                                4,989             10,951              5,095
Adjustments:
Amortisation of goodwill                                       5,551              4,602             14,247
Exceptional item                                                 525                  -                838
Adjusted earnings                                             11,065             15,553             20,180
Weighted average number of equity shares                 127,226,241        123,212,504        125,174,819
- for basic and adjusted earnings

Effect of dilutive share options                             181,772          3,562,413          1,110,519
Weighted average number of equity shares                 127,408,013        126,774,917        126,285,338
- for diluted earnings                                                         

Earnings per equity share                                      3.92p              8.89p              4.07p
Diluted earnings per equity share                              3.92p              8.64p              4.03p
Adjusted earnings per equity share                             8.70p             12.62p             16.12p


6. Reconciliation of operating profit to net cash inflow from operating profits

                                                                 2002               2001              2001
                                                            Half year          Half year             Total
                                                            unaudited          unaudited
                                                                 £000               £000              £000

Operating profit                                               14,533             21,956            23,844
Depreciation charges                                            3,651              2,916             5,798
Amortisation of goodwill                                        5,551              4,602            14,247
(Profit) / Loss on sale of tangible fixed assets                  (8)                 10                17
(Increase) / decrease in stocks                               (3,493)                507             1,197
Decrease / (increase) in debtors                                6,139              7,079            16,336
(Decrease) / increase in creditors                            (7,630)           (21,049)          (20,279)
Other operating items                                             274              (276)              (84)
Net cash inflow from operating activities                      19,017             15,745            41,076

7. Analysis of changes in net debt

                                                                                           
                                                                        Cash flow          Exchange        At 30 June
                                                   At 1 January         unaudited          movement         unaudited
                                                           £000              £000         unaudited              £000   
                                                                                               £000
                                                                                               
Cash at bank and in hand                                  4,102           (1,768)             (179)             2,155
Overdrafts                                              (3,815)             2,935                 -             (880)
                                                            287             1,167             (179)             1,275
Bank loans due in less than one year                    (2,500)             1,750                 -             (750)
Loan notes due in less than one year                      (438)               438                 -                 -
Bank loans due after one year                         (116,181)           (1,424)           (1,598)         (119,203)
Total                                                 (118,832)             1,931           (1,777)         (118,678)



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