UK - International information supplier and events producer Informa delivered “noticeably improved” six-month results, with profit before tax doubling to £66.4m “despite uneven economic recovery in terms of region and vertical sector”, according to chief executive Peter Rigby.
Informa results to 30 June 2010 show adjusted operating profit growth of 4.2 per cent on increased margins. Group revenues “on an organic basis marginally declined by 0.5 per cent”, the statement said.
The events and training portfolio now accounts for 48.7 per cent of Informa’s revenues. The results show improved trends in delegate numbers and sponsorship and exhibitions remain strong. Corporate training is starting to recover, the group noted. The portfolio increased adjusted operating profits by 11.4 per cent, although revenues of £304m marked a 3.2 per cent decrease on events and training’s £314.2m contribution in the same period of 2009.
Informa said it was running more large-scale events, which account for over a third of the portfolio’s revenues. Substantial cost has been removed from the businesses over the past two years, allowing it to now make selective investments by launching new products.
On the exhibition side, Informa claimed successes with its Arab Health, Palm China and IPTVa and IPEX shows. Real estate in the Middle East was identified as a weakness, however, with Cityscape shows down on previous years.
Some of the largest conferences – GAIM, Fund of Funds and Prepaid Card Expo – were up 30 per cent and the smaller European conference businesses experienced good growth, according to the interim statement, with conditions also improving in Australian, Russian and German markets.
The training sector was flagged up as the most challenging in the events portfolio.
Problems with a US government contractor Robbins Gioia had impacted the US business, leading to a 12.2 per cent decline.
Overall, Rigby said he was “pleased with the positive start we have made to the year which shows the strength of our balanced business model, where stable publishing and information revenues complement our more cyclical, operationally geared events and training business”.
The board increased the dividend by 25 per cent, to 4.5p.
