Trading Statement
Informa PLC
17 December 2007
17 December 2007
TRADING UPDATE FOR YEAR ENDED 31 DECEMBER 2007
Informa, the global information specialist, continues to perform well in the
second half of the year. Strong trading in our important September, October and
November months which account for around 35% of Group operating profit, is
carrying on into December. The Board is confident that the 2007 performance will
be in line with our significant growth expectations. Organic revenue on a
constant currency basis* is projected to increase by 9%.
All three of Informa's divisions: Academic & Scientific, Professional and
Commercial, are contributing well to the year on year increase. Commercial is
having a particularly strong 2007 of double digit growth. Trading within each of
the divisions is good across all of Informa's business activities: events,
performance improvement and publishing.
Publishing
Publishing is finishing the year strongly across the Academic & Scientific,
Professional and Commercial markets. Publishing revenues are primarily
subscription driven with advertising revenues accounting for only c. 3%. In 2008
publishing, which includes Datamonitor, will represent approximately 60% of
Informa's profits.
Academic publishing is concluding a good 2007. The LEA, Haworth and Productivity
Press acquisitions have all been successfully integrated. In 2008 Informa
expects to benefit from strong renewal rates of over 95%. In addition, content
growth driven price increases in the 7 - 9% range and a robust pipeline of new
book launches promises well for next year. The 14th edition of the best selling
specialist book Microbiology of the Cell (which has sold over a million copies
in its lifetime) is published this month providing a strong start to 2008.
Publishing in the Professional and Commercial divisions is benefiting from
higher yields through the increased utility of digital delivery. Renewal rates
in both these divisions, as well as in Informa Healthcare, are tracking ahead of
this time last year.
PI
The Performance Improvement (PI) group of companies, working with corporate and
government clients to solve business issues in different operational
disciplines, continue to experience good global demand for their products and
services. This growth is largely driven by multi-nationals seeking efficiencies
and consistency of best practice across their global operations.
The PI sales pipeline for 2008 is 8% ahead of where it was at this same point
last year. The softening of some US commercial markets is being offset by strong
international growth and the high percentage of PI revenue from the currently 16
agencies of the US Federal government.
Robbins-Gioia, the Program Management specialists, has around 90% of revenues
from the US Federal Government. Robbins-Gioia is on track to finish the year
with double digit growth.
Events
The Events businesses continue to benefit from the focus on 'must attend' Large
Scale Events. These strong brands create high barriers to entry, good pricing
power, substantial levels of repeat business and the opportunity for
replications elsewhere in the world, known as 'geo-cloning'. All of these
factors have contributed to strong trading in September, October and November
and position Informa well for 2008.
The Dubai events business is completing another particularly good year with
growth in all its flagship products including the newly cloned Cityscape series.
In October Cityscape Dubai, the world's largest property event, attracted more
than 50,000 participants from 120 countries. Over 1,000 exhibitors showcased
their projects and services on 70,000 square metres of exhibition space. Record
show revenues were 35% ahead of 2006. In November the first Cityscape India was
held beating expectations on both exhibitor and delegate figures and providing a
strong platform for further growth in India.
In the Professional division, the geo-cloning strategy is also producing good
results. ICBI, the market leading international financial events specialists,
has continued to perform strongly in the second half of the year. In December
the business held its largest ever inaugural geo-cloned event with the extension
of its Large Scale Event, SuperReturn, the world's largest private equity
conference, to the Middle East. ICBI's sponsorship and exhibition revenues for
2008 are currently over 15% ahead of this same point last year.
Datamonitor
Datamonitor, which delivers its business intelligence via electronic
subscriptions, is performing well in the second half of the year. It is on track
for an organic revenue growth rate of over 20% in 2007. The recent introduction
of a multi-tiered global marketing plan to drive synergies between Datamonitor
and legacy Informa businesses is building a strong pipeline for 2008.
The acquisition of Datamonitor, which follows Informa's merger with T&F in 2004
and the acquisition of IIR in 2005, has further strengthened Informa's ability
to deal with market volatility. In 2008, Informa's subscription revenues, which
are now almost all electronically delivered, will account for around 30% of
total revenue.
Financials
As previously reported, in cash flow terms Informa is largely unaffected by
currency movements as we structure our bank debt to reflect the currencies in
which we transact our business. Informa receives around 50% of its revenue and
incurs around 40% of its costs in US dollars and is therefore affected by
movements in the exchange rate of the US dollar to sterling in translation
terms. For each one cent movement in the sterling to dollar exchange rate the
translation impact on our revenue is around £3m and on our operating profit is
around £1m but this is offset by around £0.2m in tax and interest.
Against a background of pressure in the debt markets, the syndication of
Informa's new £1.45bn multi-currency debt facility that was taken out in July
has been successfully completed. This syndication process was completed on
budget and to plan; a testament to the resilience and attractiveness of the
Informa business model and the strength of its cash flows.
David Gilbertson, Informa's Chief Executive notes:
'Our strategy to rebalance the company with a broader focus is paying off. We
now have a good balance of high growth capturing and more defensive businesses.
We are not over-exposed to any single sector or geography. Our publishing
renewal rates, PI repeat business and Large Scale Events portfolio give us good
visibility into 2008. We move into the new year with confidence.'
The full Preliminary Results will be announced on 27 February 2008.
ENDS
* Adjusted for acquisitions, IPEX (the quadrennial print show) and new
contractual terms for 3GSM.
Further Enquiries:-
Informa plc Tel: 020 7017 5000
Peter Rigby, Chairman
David Gilbertson, CEO
Anthony Foye, Finance Director
Susanna Kempe, CMO and IR Director Tel: 020 7017 5796
Maitland Tel: 020 7379 5151
William Clutterbuck
Emma Burdett
This information is provided by RNS
The company news service from the London Stock Exchange