Euromoney delivers despite toughening conditions

Euromoney Institutional Investor, an international online information and events group, has delivered a good set of full year results, but warned that market conditions have become 'noticeably tougher from June' and it expects this to continue into the early part of 2013.

For the full year to September 30th 2012, it grew revenues by 9% to £394.1m (2011: £363.1m) and increased pre-tax profits 35% to £92.4m (2011: £68.2m).

In a statement the company said: "The negative trends in advertising and delegate revenues in the last quarter are expected to continue into the first quarter of financial year 2013, although the outlook for event sponsorship is more positive.

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"First quarter trading has started in line with the board's expectations but as usual at this time, forward revenue visibility beyond the first quarter is limited, other than for subscriptions."

The group's strategy to build a robust and tightly focused global online information business with an emphasis on emerging markets appears to be bearing fruit. The acquisition of Ned Davis Research (NDR) in August 2011 has also helped increase the proportion of revenues generated from subscriptions to more than 50% for the first time.

Adjusted operating margin was unchanged at 30%. Costs, particularly headcount, have remained tightly controlled throughout the year. At the same time, the group has increased its investment in technology and new products as part of its online growth strategy.

Net debt at September 30th was £30.8m compared with £88.5m at March 31st and £119.2m at September 30th 2011. In the absence of any significant acquisitions, net debt fell by £88.4m since the start of the year, reflecting the group's strong cash flows and an operating cash conversion rate in excess of 100%. The group's net debt is now at its lowest level for more than a decade and its robust balance sheet provides plenty of headroom for the group to pursue its acquisition strategy.

CM