Centaur Media PLC
12 July 2006
12th July 2006
Centaur Media plc
PRE-CLOSE TRADING STATEMENT
Full year results expected to be at top end of market expectations
New Chief Executive selected
Recent acquisitions integrating well
Improved outlook for new financial year
Full year dividend up 76%
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Centaur Media plc, the specialist business publishing and information company,
today issues a pre-close trading update for the year ended 30th June 2006,
prior to its preliminary results announcement, scheduled for 29th September
2006.
Overall trading performance review
Results for the year ended 30th June 2006 are anticipated to be at the top end
of market expectations, with the Group achieving further strong growth in PBTA
(note i). This growth has been driven by double digit revenue growth, led by
strong second half results in the legal, financial and engineering sectors in
particular and assisted by a positive contribution from recent acquisitions. We
anticipate reporting further improvement in margins, in line with the Board's
expectations.
In the year to 30th June 2006, total advertising revenues are expected to have
increased by more than 10% compared with the prior year, reflecting a strong
second half performance across most market sectors. The principal sources of
this growth were in magazine display advertising and in internet recruitment
advertising.
Revenues from exhibitions, conferences and other events are also expected to
show full year growth in the order of 10%. In particular, we have experienced
further strong growth in exhibition revenues, with established events
delivering significantly improved results. These have been enhanced by strong
performances from new events such as the Logistics Shows and the Mortgage and
Investment Summits.
Perfect Information has continued to perform well in the second half and is
expected to deliver a material profit improvement compared with the prior year.
Recent acquisitions, in particular the magazines The Recruiter and Period
Living and the online service Pro Talk have performed well, in line with our
expectations, and are being successfully integrated within the Group.
Management Succession
The process of appointing a new Chief Executive has been concluded. The
Nomination Committee of the Board, supported by an independent search
consultancy, considered a number of internal and external candidates. After due
consideration, the Board is pleased to announce that, with effect from 1st
November 2006, Geoff Wilmot (see note ii) will take up the post of Chief
Executive Officer and Graham Sherren will remain Chairman.
Share Buy Backs
In view of the ongoing strength of the Company's balance sheet, the Board
intends, subject to the market price of the Company's shares from time to time,
to utilise its existing share buyback authority in order to enhance shareholder
value. This authority was renewed at the last AGM and permits the Company to
make on-market purchases of up to 10% of the Group's existing issued share
capital at a price of up to 5% above the average of the middle-market
quotations for the five preceding business days. The Board will also consider
seeking shareholder approval for an increase in the number of shares covered by
the Company's buy back authority.
Dividend
In recognition of the Group's strong trading over the year and its continuing
confidence in the financial performance of the Group for the year to come, the
Board has decided to propose a final dividend for the year ended 30th June 2006
of 2.4p per share, lifting its full year dividend to 3.0p per share, compared
with a full year payment in respect of the year ended 30th June 2005 of 1.7p,
an increase of approximately 76%. The record date and payment date for this
final dividend are 13th October 2006 and 10th November 2006 respectively.
The Board intends to use this new dividend as the base from which to follow its
progressive dividend policy in the future (subject always to the Company's
financial position, capital requirements and forecast cash flow).
Current Trading and Outlook
The Board believes that its strategy of building and acquiring strong
multi-platform brands serving niche business communities will enable the Group
to make significant progress in the new financial year. The current outlook for
each of our served markets is positive for the year ahead. In addition we
expect to benefit from cost savings made in the year ended 30th June 2006 and
from a full year profit contribution from recent acquisitions. As a result, the
Board is confident that Centaur's financial performance for the year ending
30th June 2007 will exceed its previous expectations.
Notes
i. Our key measure of profit is profits before tax and amortisation of
acquired goodwill and excluding exceptionals (PBTA)
ii. Geoff Wilmot has been Chief Financial Officer (CFO) of Centaur since 1998,
prior to which he was CFO of The Thomson Corporation Legal &
Professional (Europe & Asia Pacific)
Enquiries
Centaur Media plc Graham Sherren Tel: 020 7970 4000
Geoff Wilmot
Gavin Anderson & Company Richard Constant Tel: 020 7554 1400
Robert Speed
Janine Brewis
This information is provided by RNS
The company news service from the London Stock Exchange
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