Euromoney Institutional Investor plc (LON: ERM), the global information business providing essential B2B information to global and specialist markets, has announced an update on the strategic review announced in September and trading for the year ended 30 September 2019, ahead of the Group’s full year results announcement on Thursday 21st November 2019.
On 10 September, Euromoney announced that it was conducting a strategic review of its Asset Management segment made up of the Institutional Investor, BCA Research and NDR businesses. Although still at a relatively early stage, Euromoney confirms that the strategic review is progressing well and the businesses will be reported as discontinued operations and as assets held for sale in the financial statements for the year ended 30 September 2019.
Ahead of the full year results, the Company provides the following trading update1. Full year 2019 results are slightly above the Board’s expectations. Adjusted revenue for the year ended 30 September 2019 is expected to be approximately £401m (underlying revenue flat). This reflects a continuation of good growth in the Pricing, Data & Market Intelligence segment, with underlying revenue up approximately 4% and approximately 10% growth in Fastmarkets subscriptions. Asset Management continued to face challenges and saw revenue decline by approximately 4% on an underlying basis. Banking & Finance, our smallest segment which accounted for 15% of the Group’s revenues, was down by approximately 1%. BoardEx has now been fully integrated with strong underlying growth of approximately 11% year-on-year.
Adjusted profit before tax is expected to be approximately £104m, up approximately 9% on an underlying basis, a result that reflects underlying growth in our Pricing, Data & Market Intelligence segment, as well as lower net interest costs. Cash conversion remains strong at approximately 95%, and year end net cash was approximately £50m. Euromoney Institutional Investor plc is expected to propose a final dividend in line with last year’s final dividend of 22.3p, which would result in a full year dividend of 33.1p per share, up by 2% year on year.
- Unaudited results, subject to change.
- Underlying results above include the adjusted results (which include the results of (a) continuing operations and (b) those operations classified as discontinued in 2019) and restate prior periods using current period exchange rates and use pro-forma comparatives for acquisitions but exclude closed businesses and prior year disposals.
