Strong top line growth at UBM

Exhibitions group and business publisher UBM saw strong underlying revenue growth in the first half of 2012, but the future of the Data Services division is up in the air.

"We have had a good first half of the year with underlying revenue growth of 6.8% and margins up almost a percentage point to 20.3%," said David Levin, UBM's Chief Executive Officer.

"We have decided to explore strategic options for the Data Services businesses to confirm we are allocating capital appropriately between the growing number of opportunities now available to us," Levin revealed.

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Revenue rose 7.3%, or 6.5% on a constant exchange rate basis, to £508.7m from £474.0m the year before. The Events division grew underlying revenue by 16.7% year-on-year; PR Newswire's underlying top-line growth was 3.9% while Marketing Services (Online) grew 8.2%.

Letting the team down were Data Services (underlying decline of 2.1% in revenue) and Marketing Services (Print), where underlying revenue was down 12.2%.

Reported profit before tax rose 12.7% to £70.1m from £62.2m the year before, while with one-off items stripped out it jumped 13.5% to £90.6m from £79.8m last year.

"We remain on track to meet our expectations for the full year. We now expect improved underlying growth for Events of 12%-14%," revealed Levin.

Despite announcing a strategic review of the Data Services unit, full year guidance for the division has been maintained, with an improved performance expected in the second half. However, reflecting faster than previously anticipated declines in print advertising, the group now expects Marketing Services - Online and Print combined - to deliver growth of between 0%-2%.

"While our business is trending positively, we are retaining our consolidated guidance as we are mindful of the uncertain external environment," Levin said.

Cash generated from operations edged up to £113.9m from £112.4m in the first half of 2011. Net debt at the end of June had risen to £536.8m from £482.2m a year earlier.

The interim dividend has been bumped up by 6.3% to 6.7p from 6.3p last year.

The shares rose 34p to 641p in the first two hours of trading on the day the results were announced.

JH