WORLD - Publishing, exhibition and conference group Informa says bookings for its large events are improving despite a drop in exhibition and training revenues of over a quarter on the previous year.
The group announced full year results for 2009, 2 March, which showed the recent cost-cutting programme had, according to chairman Derek Mapp, put the company “in a stronger position than a year ago”.
Forward bookings for exhibitions and large-scale events were “slightly ahead of 2009”, according to the annual financial statement.
Informa, which pulled out of a bid to buy debt-laden German rival Springer Science last year, said it was no longer looking for large acquisitions, although chief executive Peter Rigby has not ruled out making “some strategic or bolt-on acquisitions”.
The company cut the volume of smaller events it runs, which it said were less profitable than large exhibitions, such as the Monaco Yacht Show.
Total revenue for the year ended 31 December 2009 was £1.22bn, down four per cent on 2008. The company reported adjusted operating profits up one per cent at £309.5m.
Events and training organic revenues slid most of all, down 27 per cent, “partly driven by a pro-active reduction of the number of events run”, said the company. Organic adjusted operating profits declined by 12 per cent, with an increase in publishing of eight per cent offset by a 41 per cent decline across events and training.
Brokerage Numis raised its target price for Informa’s stock to 459 pence from 429 pence. “We see scope for further upgrades to both FY10 and FY11 through a combination of a cyclical rebound in the group's structurally sound revenues and high operational gearing,” the broker said.
A second interim dividend of 7.85 pence was better than City forecasts.
Derek Mapp cautioned investors that the outlook remained uncertain, however, although he said the company was “in a stronger position than a year ago and has a suitably flexible business model that will allow it to manage uncertainty and capitalise on opportunities. The company is well placed to capture the economic upturn when it arrives”.
