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Go-Ahead for Informa's New Structure
Datamonitor parent Informa plc has reiterated its confidence in its current position, in a trading statement, and has won approval for a restructure based around the creation tomorrow of a new parent company, New Informa.
The latest trading statement, for the period ending 30 June 2009, says that as per its statement of 1 May the Group is still trading in line with management expectations despite very challenging trading conditions. Its publishing businesses, including Academic Information and Professional and Commercial Information divisions and accounting for over 60% of the Group's adjusted operating profits, continue to grow, and will continue to see action to improve efficiencies resulting in increased adjusted operating profit margin. Its Events and Training Division continues to face 'weak demand' and therefore to pro-actively reduce volume to protect profitability despite significantly lower organic revenues for the first six months of the year. Across the Group, the board expects that its pro-active approach to cost means full year adjusted operating profit margins should be maintained at 2008 levels.
Restructuring costs incurred to date in 2009 related to cost saving initiatives are expected to be c.£10 million with annualised savings estimated at c.£20 million. The statement concludes: 'We remain confident about the Group's future prospects and believe that the market positions of our leading brands and events leave us well positioned to grow significantly when world economies start to improve.'
The High Court of Justice has approved the scheme of arrangement first reported on May 1st, that will see the creation of a Jersey-incorporated and Swiss tax resident parent company, New Informa, effective tomorrow, 30 June. Informa Shareholders will receive one New Informa Share for every Ordinary Share held by them at 6.00 p.m. today. It is expected that the New Informa Shares will be admitted to the Official List and to trading on the London Stock Exchange's main market for listed securities with effect from 8.00 a.m. on 30 June 2009, with the listing of the existing Ordinary Shares cancelled at the same time.
Informa operates in 80 countries and employs approximately 9,000 people. The Group will announce its half year results on 28 July 2009. Web site: www.informa.com .
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