Daily Research News Online no. 9650 - Datamonitor Helps Solid Performance for Informa

Datamonitor Helps Solid Performance for Informa

March 4 2009

UK-based Informa plc has announced preliminary results for the year ended 31 December 2008, with a positive contribution from its recently acquired market intelligence firm Datamonitor adding to slow but sure organic growth.

Informa saw modest organic growth in group revenue (up 1.1% to £1,278.0m) and operating profit (up 1.4% to £305.8m) but managed to reduce costs and improve adjusted operating margin (to 23.9%) while reaping benefits from currency changes. Adjusted diluted earnings per share grew 14% to 40.32p and adjusted profit before taxation increased by 15% to £233.4m. It also reported free cash flow of £205.7m, up 53%, and reduced its debt ratio.

The firm says Datamonitor, in its first full year of ownership, continued to grow and increased its operating margin. The year saw the launch of an enhanced suite of Knowledge Centres across six principal vertical sectors as well as a new office in Dubai making use of the Informa Group network. The healthcare and telecoms sectors are said to have performed well.

Datamonitor's subscriber base continues to grow with almost 1,000 new subscribers since the acquisition. Larger subscribers, paying more than £20,000 per annum, grew by 19% and had a renewal rate of 83%. Informa expects Datamonitor's growth to slow given the economic climate, but that it will nevertheless 'make a substantial contribution to the Group's 2009 results'.

Chairman Derek Mapp said Informa had 'a strong portfolio of businesses that balances geographic and sector exposure' and confirmed: 'Our overall expectations for 2009 have not changed. We will not be immune to recession, however we expect to benefit from a more favourable translation of overseas earnings.'

The Board says it has considered sales of non-core businesses but in the current conditions 'has no desire to sell quality assets at depressed prices'. In September, a private equity consortium behind a rejected bid for the group officially pulled out. The Board says it will 'continue to pursue opportunities as appropriate, throughout 2009'.

Web sites: www.informa.com and www.datamonitor.com .