• Group revenue increased to £1,137m (2013: £1,130m)
  • Adjusted operating profit consistent at £334.1m (2013: £334.7m)
  • Free cash flow strong at £232.5m (2013: £207.8m¹)

2014-2017 Growth Acceleration Plan (“GAP”) launched and implementation underway

  • Strong organic growth in Global Exhibitions with revenues up 18.9%; expanding US presence (US$200.2 million – growth 18.9%)
  • Differentiated operating model delivering consistent organic growth in Academic Publishing (US$ 408.9 million – growth flat)
  • Organic decline demands increased market and customer focus in Business Intelligence (US$281.7million – growth -7.9)
  • New management at Knowledge & Networking pursuing community engagement model (US$246.2 million – growth -4%)

The company announced a full portfolio review leads to exit from conference businesses and Chinese Pharma investment.  It proposes a balance sheet write down of underperforming Datamonitor information assets acquired in 2007.

Stephen A. Carter, Group Chief Executive, said: “These results, achieved against significant currency headwinds, deliver on our promise of improved earnings, increased dividends and stronger cash flow in 2014”.  “To have achieved this outcome whilst implementing the first phase of our Growth Acceleration Plan – which included a new operating structure, balance sheet refinancing and several targeted acquisitions – is a testament to the quality of our people, improved operating discipline and a growing international presence. The underlying business performance, combined with initial momentum from our growth strategy, underpins the proposed increase to the final dividend.”

Source:  Informa Press Release

Outsell’s Simon Alterman, VP & Lead Analyst, writes in his recent Outsell Insight:  “Informa’s  new management has finally acknowledged what almost everyone else  (except perhaps the old management) has long believed: it overpaid  dramatically when acquiring the Datamonitor market research business in  2007 for more than 7x revenues (see Insights, 16 May 2007, Informa Acquires Datamonitor For GBP 502m [1]). Its 2014 results [2] included a GBP 190 million write-down against those assets, equivalent to almost 40% of the purchase price. The non-cash charge effectively wiped out the company’s statutory operating profit for the year.”