UBM confident of growth despite Q1 dip

Despite a three per cent fall in underlying first-half sales, events and marketing group UBM is confident its emerging markets strength will deliver 'strong growth' for the full year.

Despite a three per cent fall in underlying first-half sales, events and marketing group UBM is confident its emerging markets strength will deliver 'strong growth' for the full year.

UBM, which sold its Delta loss-making data services division in a £160m deal announced in February, saw adjusted operating profit collapse 24% from £46m to £35m in the three months to March 31st, as the dominant events arm suffered contractions in sales and profits.

First-quarter revenues slid 7.9% to £194.7m, although allowing for exceptional events the underlying fall was less than half that.

Chief Executive Officer David Levin said the tough first quarter had been anticipated and was due to declines in UK shows, but that events revenues in its emerging markets such as China and India were strongly weighted to the second half.

He said that there was no change to the group's full year guidance, which is for revenue growth of between 3.0 and 7.0 per cent for 2013.

"Our portfolio of events in the US and Emerging Markets performed well. Forward bookings are tracking in line with our expectations and we continue to expect strong growth through the balance of the year, particularly in our Emerging Markets events which are weighted to the second half."

"PR Newswire has made a good start to the year. In Marketing Services, we have begun to restructure the UBM Tech business to create a more sustainable and profitable model supporting our strong technology events franchise."

The balance sheet was bolstered by the receipt of net £92m cash proceeds from the Delta disposal, with a further closing of balance expected in due course.

OH

Recommended

Which assets will benefit as the “jam tomorrow” bubble pops?
Investment strategy

Which assets will benefit as the “jam tomorrow” bubble pops?

With tech stocks, cryptocurrencies and many other “long duration” investments crashing hard, the “jam tomorrow” bubble looks to be bursting. John Step…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Share tips of the week – 21 January
Share tips

Share tips of the week – 21 January

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
21 Jan 2022
Seven cheap defence stocks to buy now
Share tips

Seven cheap defence stocks to buy now

We’ve got used to a world without war between major powers, but that era is coming to an end as Russia threatens Ukraine and China eyes Taiwan. Buy de…
21 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Temple Bar’s Ian Lance and Nick Purves: the essence of value investing
Investment strategy

Temple Bar’s Ian Lance and Nick Purves: the essence of value investing

Ian Lance and Nick Purves of the Temple Bar investment trust explain the essence of “value investing” – buying something for less than its intrinsic v…
14 Jan 2022