Growth acceleration plan paying off for Informa

Business information, exhibitions, events and academic publishing group Informa issued its financial results for the 12 months ended 31 December on Wednesday, reporting a third consecutive year of growth in revenue, adjusted profit, adjusted earnings per share, cash flow and dividends.

The FTSE 100 company said it saw higher revenue growth of 30.7% during the year, to £1.76bn, including Penton Information Services and YPI.

Underlying revenue growth was 3.4%.

It also reported increased adjusted operating profit growth of 31.3%, to £545.5m, along with a higher statutory operating profit of £345.3m, compared to £198.6m.

The firm’s adjusted diluted earnings per share growth was improving, at 9.5% to 46.1p, with the board also confirming an “enhanced” dividend, up 6.0% to 20.45p.

Free cash flow growth remained strong at 31.1%, to £400.9m, as Informa’s directors described the balance sheet as “robust”, with its net debt-to-EBITDA ratio back within its target range at 2.5x, down from 2.6x in 2016.

Informa said all four of its divisions were in growth, with strong underlying revenue growth of 7.6% and reported revenue growth of 74.5% in global exhibitions.

The board said that was reflective of increased international scale, depth in attractive verticals and strengthened capabilities in data and marketing solutions.

In business intelligence, the company saw continued improvement in underlying revenue growth to 2.2% and reported revenue growth of 27.1%, which was reflective of the firm’s investment in products and platforms on subscription renewals, consulting activities and specialist data and marketing solutions.

Informa’s academic publishing unit saw improved underlying revenue growth of 2.0% and reported growth of 8.1%, which was a result of consistent growth in journals and improved performance in books following the board’s operational effectiveness programme.

Finally, in knowledge and networking, the group saw a return to positive underlying revenue growth of 0.1%, with reported growth of 22.6%, which reportedly reflected an increased portfolio focus, strength in branded confexes and events, and investment in digital capabilities.

On the strategic front, Informa reported progress in the delivery of its ‘Growth Acceleration Plan’, with the broad growth put down to the completion of the board’s four-year acceleration programme, including around £80m invested in product innovation and platform enhancements.

It also reported that the programme to integrate Penton Information Services was delivered ahead of plan, with the division now operating and reporting as an integrated business, and on track for at least $18.5m (£14m) of net cost synergies and revenue benefits in 2018.

Continued proactive portfolio management also saw increased operational focus through the sale of a majority stake in the German and Swiss conference business, the board claimed, along with a reduction in exposure to the volatile lower level textbooks market through the sale of Garland.

An ongoing review of selective non-core parts of the portfolio was still underway, Informa said.

The company also highlighted its recommended offer for UBM, reiterating that the enlarged group would create a leading business-to-business information services group.

A prospectus and circular were due for publication on 14 March.

“2017 was a year of performance and delivery, with all four divisions in growth, the integration of Penton Information Services achieved ahead of plan and our four-year acceleration programme delivered on budget and on schedule,” commented Informa chief executive Stephen A Carter.

“Our investments over the last four years have helped build operational capability for continued growth and scale in 2018 and beyond.”