UBM first half profit down but full year outlook unchanged

UBM posted a 37.2% decline in first half pre-tax profit, and said it was confident of meeting full-year expectations.

The marketing and events company posted a £47.6m profit for the six months to June this year, down from £75.8m the year prior.

Reported revenue was up by 26.3% to £456m from £361 the year prior, which UBM attributed to its new US acquisition Advanstar and favourable foreign exchange movements.

UBM took a £1m hit from acquisition costs relating to Advanstar and product fair Hospitalar.

On an underlying basis revenue was down 4.1% due to the slower growth profile of its first half events.

The company noted its tax rate would be higher than expected at 12.7% after new rules were introduced in the UK budget which meant the company could no longer offset losses against controlled foreign companies’ income.

The board kept its interim first half dividend unchanged at 5.3p per share, and said it was confident in meeting expectations for 2015.