Trading Statement

Informa Group PLC 1 November 2001 1st November 2001 INFORMA GROUP PLC The escalation in international political tension and the resulting downward pressure on commercial activity since September 11 on top of already weakened market conditions, particularly in the IT and Telecoms markets, have created challenging trading conditions for our important last quarter. Delegate attendance at our UMTS telecoms event, held in Barcelona earlier this month, reached 600, which represented the lower end of our expectations. Related sponsorship and exhibition income was 40% higher than last year. The overall net profit of the event was 50% lower than in 2000 when some 2500 delegates attended. This lower attendance, which was undoubtedly affected by concerns over air travel, reflects a trend which we have seen across a wider range of our international events since the terrorist attacks in the United States. Reluctance to travel internally within the US has also affected attendances at the Life Sciences events we run there. Overall delegate attendance in September was 20% below our expectations. Attendances in October events have improved but are still likely to be 15% lower than expected. The impact of these delegate reductions has been mitigated by continuing strong sponsorship and exhibition sales and cost control initiatives. We estimate the net profit impact of lower than expected delegate numbers in the two months September and October combined will be around £2m. Publication subscriptions, which makes up some 25% of total group revenue, remain firm with renewal rates continuing at around 80%, the same level they have consistently achieved through the economic cycle. But we have seen some slowdown in advertising spend particularly in our maritime and financial publications in the last two months. September advertising income across our range of business titles was some 25% below September 2000. Again, October has seen an improvement on September levels but will still fall 15% below the same month last year. Advertising accounts for some 11% of group revenue. We are continuing to reduce our cost base, including further lowering of headcount, to defend our operating margins. We have incurred restructuring charges of some £4.5 million which will largely benefit 2002. Enquiries: David Gilbertson, Informa Group, 0207 453 2222 Fiona Piper, The Maitland Consultancy, 0207 379 5151

Companies

Informa (INF)
UK 100

Latest directors dealings