Final Results

Informa Group PLC
12 March 2002

                                                               Tuesday, 12 March


                               Informa Group plc
                  Results for the year ended 31 December 2001



Operating highlights


  • Turnover up 9%


  • Profit on ordinary activities before tax* 24% lower at £30.1m


  • Two major acquisitions in Finance and Insurance, and Life Sciences
    performing well


  • Over 30% of Group revenue from subscriptions and 50% of profit from
    publishing


  • Unchanged dividend for 2001 of 7.6p


*before loss on disposal of a subsidiary and goodwill amortisation




Informa Group's Chairman Peter Rigby commented:


"2001 was a difficult year for Informa, particularly in the second half with the
downturn in the telecom market and lower advertising and delegate numbers in the
final quarter of the year."


"The first few months of the current year has seen a stabilisation in the market
conditions. We are cautiously optimistic that when market conditions improve we
will be well placed to take advantage."




For further information

Peter Rigby, David Gilbertson, Jim Wilkinson

Informa Group plc                                            020 7017 4302

Fiona Piper

The Maitland Consultancy                                     020 7379 5151




Results


2001 was a difficult year for many media companies including Informa. The year
saw increasing recessionary pressures in many economies, a substantial downturn
in the mobile telecommunications market and economic uncertainty caused by the
terrorist attacks in the United States and the ensuing hostilities.


We saw pre-tax profits (excluding goodwill amortisation and the loss on disposal
of a subsidiary) fall by 24% to £30.1m (2000 £39.7m) on turnover up by 9% to
£323m (2000 £297m). This decline was largely caused by a fall in the number of
delegates attending our conferences, down on average by 16% and a reduction in
advertising income of 8%. Adjusted earnings per share fell by 29% to 16.40p
(2000 23.17p).


The Board recommends a final dividend of 4.94p payable on 28 May 2002 to
shareholders whose names are on the register of members on 26 April 2002. When
added to the interim dividend of 2.66p this gives a total dividend for the year
of 7.6p, unchanged from 2000.


Operating Review


2001 started well with the 3GSM World Congress welcoming over 7,200 delegates
and a further 16,000 exhibition visitors during February. A record breaking
annual Energy conference in Germany preceded this success. With some strong
advertising sales, especially in the mobile telecommunications area, we had a
good first quarter.


We started to see some signs of weaker trading during the second quarter of 2001
and took appropriate action. During the year we reduced the workforce by around
13%, excluding acquisitions, at a cost of £4.9m. Although some benefit of the
cost reduction measures was felt in 2001 most of the expected £10m savings will
flow into 2002. We examined all other cost lines during the year eliminating
unnecessary expenditure and achieving a number of cost savings. We closed our
office in Finland, downsized in the USA and discontinued some marginal products.
We continue to review our portfolio actively.


At the half year in 2001 we saw growth in all six of our market sectors but in
the full year only Finance and Insurance, and Life Sciences still showed growth
over 2000 and both of these were bolstered by acquisitions.


Our Finance and Insurance business stood up well during the year, with profits
up 29% to £10.3m from high levels of subscription retention and some good new
business. However, the insurance side was more difficult as advertising spend
fell away and delegate numbers declined drastically following the terrorist
actions.


The Life Sciences division did well with profits up 49% to £3.8m. Another record
Drug Discovery Congress was held in August with other notable successes
especially in the research and development area. The event business was badly
affected by travel restrictions in the autumn, although we do not expect this to
have damaged the business or affected its underlying growth rate in the medium
to long term.


The Telecoms and Media division profit fell by 40% to £10.9m in response to the
difficulties of the mobile telephone industry following their huge investments
in the 3G network licences and a slowing in handset sales. Although our flagship
conferences performed well and sponsorship and exhibition sales held firm,
delegate attendance at our smaller events and display advertising in our
magazines declined.


With 36% of our Maritime, Trade and Transport division's revenue coming from
advertising it was hard hit by the events of 11 September, particularly in the
air freight area as airlines cancelled advertising campaigns. Despite a strong
performance from conferences and exhibitions they failed to offset the fall in
advertising leaving the division down 38% at £4.5m profit.


The Commodities and Energy division profits were down 11% to £3.7m largely due
to a difficult year for our commercial fishing business, which was affected by
North Sea fish quota concerns. Our energy events performed well as the oil
exploration and production industry continued to recover, whilst our energy
consultancy had its best year ever.


The Law and Tax division saw profits fall 23% to £5.3m as a lack of legislation
in the UK before the General Election, decreased demand for our events. The
subscription renewal rates continued to hold firm and our overseas events
businesses, particularly in Germany performed well.


The Netherlands government is conducting an investigation into funding for third
party training of university students, which is likely to have an adverse impact
on future revenues at Opleiding & Ontwikkeling, the Dutch academic training
provider we acquired in late 2000. The final results of this review have yet to
be determined but in view of the uncertainty concerning future government
funding we have taken the opportunity to provide fully for the goodwill
associated with the acquisition of O&O.


Subscription, exhibition, sponsorship and delegate revenue


Subscription, exhibition and sponsorship revenues held firm as advertising and
delegate revenues suffered. Subscription income, which is our most stable source
of income, now accounts for around a third of the Group's revenue and around 40%
of the Group's operating profit. This part of our income renews at around 80%
per annum.


Sponsorship and exhibition revenue increased by 15% to account for 13% of the
Group's revenue. This remains our fastest growing organic revenue stream and
reflects the quality of our delegates and their attractiveness to sponsors.


Delegate income fell by 11% largely due to a reduction in customers' willingness
to travel after the events at the World Trade Centre and because of decreased
demand for our smaller mobile telecoms events. It now accounts for 36% of Group
revenue. During the last two months of the year we saw a small recovery in
delegate numbers. Advertising income, which we see as the most volatile form of
income, remains at only 12% of Group revenue, a relatively small proportion.


E-Commerce


Our on-going investment in electronic formats continues to pay dividends with
the proportion of the Group's profit derived from electronic products rising
from 11% to 23%. In addition 22% of delegates booked over the internet. With
around 20% of these registrations coming from new customers there are
opportunities to reduce our significant marketing spend.


Acquisitions


On the back of the good start to the year we made two major acquisitions both of
which have performed well. In total we spent £51million, which was financed by a
cash and vendor placing share issue in March 2001.


In February we acquired MCM, an electronic real time financial analytical
service covering the fixed income and foreign exchange markets. This fits well
with our existing business in the sector and with the integration now largely
complete the company is performing in line with our pre-acquisition
expectations.


We also acquired the monthly scientific magazine publisher BioTechniques which
we had targeted to help add publishing product to our largely conference based
life sciences business. We merged the magazine and conference businesses into a
market-facing unit and are achieving positive results. The performance of the
magazine has exceeded our expectations.


Later in the year we acquired a small private company, Evandale, which produces
subscription based periodicals in the financial and taxation area and which is
also doing well.


Towards the end of the year we declined a number of potential acquisitions due
to the economic uncertainty and a desire to preserve cash and minimise
indebtedness.


Last week we announced a small investment in Xinhua Financial Network that
increases our operations in the Chinese market. It is intended that following
the investment, Informa will provide further products and also become the
official Conference arm of XFN using the Xinhua brand where appropriate.


Outlook


Although there are always further ways in which costs can be reduced, we enter
2002 leaner and more efficient than before. We believe we have retained the
muscle of the group and have enough resources to have the ability to take
opportunities and achieve good organic growth as markets and economies recover.


Although we do not assume that market conditions will improve markedly this year
we are well placed to take advantage of upturn should it occur.


The 3GSM World Congress, which took place in early 2002, had 30% fewer delegates
this year than last. But with higher sponsorship and exhibition sales and tight
cost control it was in line with our expectations.


The first quarter is similarly in line and we look forward to the remainder of
2002 with cautious optimism.

Consolidated Profit and Loss Account
For the year ended 31 December 2001
                                                                                    2001              2000
                                                                  Notes            £'000             £'000
Turnover
Continuing operations                                                            290,466           296,992
Acquisitions                                                                      32,387                 -
                                                                    1            322,853           296,992
Operating profit before goodwill amortisation
Continuing operations                                                             31,877            46,811
Acquisitions                                                                       6,214                 -
                                                                    1             38,091            46,811
Goodwill amortisation                                                            (9,959)           (5,900)
Goodwill impairment                                                              (4,288)                 -
                                                                                (14,247)
Operating profit
Continuing operations                                                             20,211            40,911
Acquisitions                                                                       3,633                 -
                                                                                  23,844            40,911
Loss on disposal of subsidiary undertaking                                         (838)                 -
Profit on ordinary activities before interest                       1             23,006            40,911
Interest                                                                         (7,977)           (7,130)
Profit on ordinary activities before tax                                          15,029            33,781
Tax on profit on ordinary activities                                             (9,485)          (12,400)
Profit on ordinary activities after tax                                            5,544            21,381
Minority interests - equity                                                         (96)             (174)
Profit for the financial year                                                      5,448            21,207
attributable to shareholders
Equity dividends paid and proposed                                              (10,184)           (8,922)
(Loss)/profit for the financial year                                             (4,736)            12,285
Divdends per share                                                                  7.6p              7.6p
Earnings per share (basic)                                          2              4.35p            18.13p
Earnings per share (diluted)                                        2              4.31p            17.84p
Adjusted basic earnings per share                                   2              16.4p            23.17p



Alternative presentation
Consolidated Profit and Loss Account
For the year ended 31 December 2001
                                                                   2001                                   2000
                                                     Results                               Results                      
                                                        from        Other                     From       Other
                                        Notes     operations        items      Total    Operations       items  Total
                                                     £'000          £'000      £'000         £'000       £'000  £'000
Turnover
Continuing operations                                  290,466          -    290,466       296,992          -    296,992
Acquisitions                                            32,387          -     32,387             -          -          -
                                          1            322,853          -    322,853       296,992          -    296,992
Operating profit
Continuing operations                                   31,877    (7,378)     24,499        46,811    (5,900)     40,911
Acquisitions                                             6,214    (2,581)      3,633             -          -          -
Goodwill impairment                                          -    (4,288)    (4,288)             -          -          -
                                          1             38,091   (14,247)     23,844        46,811    (5,900)     40,911
Loss on disposal of subsidiary undertaking                   -      (838)      (838)             -          -          -
Profit on ordinary activities 
before interest                           1             38,091   (15,085)     23,006        46,811    (5,900)     40,911
Interest                                               (7,977)          -    (7,977)       (7,130)          -    (7,130)
Profit on ordinary activities before tax                30,114   (15,085)     15,029        39,681    (5,900)     33,781
Tax on profit on ordinary activities                   (9,485)          -    (9,485)      (12,400)          -   (12,400)
Profit on ordinary activities after tax                 20,629   (15,085)      5,544        27,281    (5,900)     21,381
Minority interests - equity                               (96)          -       (96)         (174)          -      (174)
Profit for the financial year                           20,533   (15,085)      5,448        27,107    (5,900)     21,207
attributable to shareholders
Equity dividends paid and proposed                                          (10,184)                             (8,922)
(Loss)/profit for the financial year                                         (4,736)                              12,285


Divdends per share                                                              7.6p                                7.6p

Earnings per share (basic)                2                                    4.35p                              18.13p
Earnings per share (diluted)              2                                    4.31p                              17.84p
Adjusted basic earnings per share
                                          2                                    16.4p                              23.17p




Consolidated statement of total recognised gains and losses
For the year ended 31 December 2001
                                                                                   2001           2000
                                                                                  £'000          £'000
Profit for the financial year                                                     5,448         21,207
Currency translation differences on foreign
currency net investments and borrowings                                              17          1,156
Total gains and losses recognised relating to the financial year                  5,465         22,363



Consolidated cash flow statement
for the year ended 31 December 2001
                                                               Notes               2001           2000
                                                                                  £'000          £'000
Cash inflow from operating activities                            3               41,076         46,474
Return on investments & servicing of finance                                  (6,581)          (8,563)
Taxation                                                                       (11,145)       (10,991)
Net capital expenditure                                                        (15,489)        (6,584)
Acquisitions and disposals                                                     (59,262)       (32,226)
Equity dividends paid                                                           (9,825)        (8,433)
Cash outflow before financing                                                  (61,226)       (20,323)
Financing                                                                        61,454         16,044
Increase / (decrease) in cash in the year                                           228        (4,279)



Reconciliation of net cash flow to movement in net debt
for the year ended 31 December 2001
                                                               Notes               2001           2000
                                                                                  £'000          £'000
Increase / (decrease) in cash in the year                                           228        (4,279)
Cash inflow from increase in debt financing                                     (8,393)       (16,388)
Change in net debt resulting from cash flows                                    (8,165)       (20,667)
Translation differences                                                             714            626
Movements in net debt in the year                                               (7,451)       (20,041)
Net debt at 1 January                                            4            (111,381)       (91,340)
Net debt at 31 December                                          4            (118,832)      (111,381)



Consolidated balance sheet
At 31 December 2001

                                                                                                   2000
                                                                 2001                          (as restated)
                                                              £'000         £'000              £'000            £'000
Fixed assets
Intangible assets                                                         174,396                             131,166
Tangible assets                                                            28,292                              16,095
Investments                                                                 4,109                               2,709
                                                                          206,797                             149,970
Current assets
Stocks and work in progress                                   6,558                            7,648
Debtors                                                      61,274                           69,743
Cash at bank and in hand                                      4,102                            3,047
                                                             71,934                           80,438
Creditors: amounts falling due
within one year                                           (126,309)                        (134,865)
Net current liabilities                                                  (54,375)                            (54,427)
Total assets less current liabilities                                     152,422                              95,543
Creditors: amounts falling due
after more than one year
Bank loans                                                (116,181)                        (104,546)
Other creditors                                             (1,011)                          (5,019)
                                                                        (117,192)                           (109,565)
Provisions for liabilities and charges                                      (475)                               (674)
                                                                           34,755                            (14,696)
Minority interest                                                           (206)                               (218)
Net assets/(liabilities)                                                   34,549                            (14,914)
Capital and reserves
Called up share capital                                                    12,787                              11,800
Share premium account                                                     122,334                              69,139
Special reserve                                                                 2                                   2
Other reserve                                                              37,398                              37,398
Profit and loss account                                                 (137,972)                           (133,253)
Surplus/(deficit) on shareholders'
funds - equity                                                             34,549                            (14,914)



NOTES

Note 1
Segmental Analysis
                                         Turnover                Underlying operating           Profit/(loss) before
                                                                        profit                        interest
                                       2001           2000           2001           2000           2001            2000
                                      £'000          £'000          £'000          £'000          £'000           £'000
Analysis by market sector
Financial and Insurance              82,621         53,235         10,347          8,047          6,487           6,456
Telecoms and Media                   73,866         74,693         10,910         18,195          7,458          17,136
Law and Tax                          54,328         56,526          5,283          6,905          2,744           6,250
Maritime, Trade and Transport        52,484         55,278          4,531          7,282          2,079           5,867
Life Sciences                        26,515         19,724          3,846          2,574          2,607           2,467
Commodities and Energy               31,880         32,064          3,717          4,190          2,227           3,163
Other                                 1,159          5,472          (543)          (382)          (596)           (428)
                                    322,853        296,992         38,091         46,811         23,006          40,911



Note 2
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 loss on disposal of subsidiary.
                                                                                            2001                    2000
                                                                                           £'000                   £'000
Profit for the financial year - basic and diluted earnings                                 5,448                  21,207
Adjustments:
Amortisation of goodwill and impairment                                                   14,247                   5,900
Loss on disposal of subsidiary                                                               838                       -
Adjusted earnings                                                                         20,533                  27,107
Weighted average number of equity shares - for basic and adjusted earnings           125,174,819             116,996,711
Average number of share options                                                        1,110,519               1,897,334
Number of shares that would have been issued at fair value                           126,285,338             118,894,045
Earnings per share (basic)                                                                 4.35p                  18.13p
Earnings per share (fully diluted)                                                         4.31p                  17.84p
Earnings per share (basic adjusted)                                                        16.4p                  23.17p



Note 3
Reconciliation of operating profit to net cash inflow from operating activities
                                                                                  2001            2000
                                                                                  £'000          £'000
Operating profit                                                                 23,844         40,911
Depreciation charges                                                              5,798          4,304
Amortisation of goodwill                                                         14,247          5,900
Loss on sale of tangible fixed assets                                                17             27
Decrease/(increase) in stocks                                                     1,197        (1,356)
Decrease/(increase) in debtors                                                   16,336       (20,549)
(Decrease)/increase in creditors                                               (20,279)         17,274
Other operating items                                                              (84)           (37)
Net cash inflow from operating activities                                        41,076         46,474



Note 4
Analysis of Net Debt
                                                               1.1.01      Cashflow      Exchange          31.12.01
                                                                                         movement
                                                                £'000         £'000         £'000             £'000
Cash at bank and in hand                                        3,047         1,057           (2)             4,102
Overdrafts                                                    (2,986)         (829)             -           (3,815)
                                                                   61           228           (2)               287
Bank loans due in less than one year                          (6,392)         3,892             -           (2,500)
Loan notes due in less than one year                             (75)         (363)             -             (438)
Bank loans due after one year                               (104,546)      (12,351)           716         (116,181)
Loan notes due after one year                                   (429)           429             -                 -
Total                                                       (111,381)       (8,165)           714         (118,832)



NOTE 5
Basis of preparation and statutory information


The financial information set out above on pages 5 to 11 does not constitute the
Group's statutory accounts for the year ended 31 December 2001 or 2000. The
financial information for 2001 and 2000 is derived from the audited statutory
accounts for 2001 which were approved by the Board of Directors on 12 March 2002
and will be delivered to the Registrar of Companies following the Company's
Annual General Meeting. Copies of the statutory accounts will be posted to
shareholders on 20 March 2002.


The statutory accounts were prepared on a going concern basis under the
historical cost convention and in accordance with all applicable current
accounting standards.


Upon adoption of FRS18:Accounting Policies, the Group has changed the accounting
treatment for the ESOP trust (QUEST) and has restated the comparative figures in
the Balance Sheet at 31 December 2000. This restatement had the effect of
reducing the Group's investments at that date by £725,000, increasing the share
premium by £2,206,000, other creditors by £245,000 and reducing the profit and
loss reserve by £3,176,000. The net result is a reduction of net assets at 31
December 2000 of £970,000. This change in treatment had no impact on either the
current or prior year's Profit and Loss Account or Statement of Total Recognised
Gains and Losses.



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