UBM Back in the Black

Current NOP World parent United Business Media Plc has reported its first annual profit in four years. Net income last year was £111.3m ($213m), or 33.2p a share, including a tax credit of £121m, compared with a loss of £41.4m (12.5p a share) the previous year. Sales rose 8.4% to £809.6m.

Revenues in 2002-3 suffered from a global advertising slump, and in 2003 from the effects of the Asian SARS scare on Conference attendance. Chief Exec Lord Hollick said that overall trading to date and improving forward order books indicated 'another year of good progress'. The company also stated that in the event of an NOP sale, a 'substantial portion of the proceeds would be returned to shareholders'.

Based on estimates from Bloomberg News, analysts expected the company to report sales of £810m. UBM shares closed yesterday at 538.75p, valuing the business at £1.8b. UBM said it lifted its full-year dividend 33% to 12p.

UBM recently gave potential suitors until the end of February to submit first round bids for NOP. As well as WPP, MR groups GfK and VNU are both said to be in the running, along with a list of equity firms including Kohlberg Kravis Roberts & Co, CVC Capital Partners, Cinven and 3i Group Plc. UBM is expected to examine bids in March and draw up a shortlist of fewer than 10 hopefuls for a second round, according to a source quoted by Bloomberg. The sale of the unit is expected to be concluded by the end of April.

Web sites: www.unitedbusinessmedia.com and www.nopworld.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.