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RNS Number : 6457A
Informa PLC
03 June 2021
Informa LEI: 5493006VM2LKUPSEDU20
Informa PLC Press Release
3 June 2021
Trading Update
Further Stability and Security
Informa (LSE: INF.L), the Information Services, Advanced
Learning, B2B Exhibitions and Events Group today issued a trading
update to coincide with its Annual General Meeting in London.
Stephen A. Carter, Group Chief Executive, Informa PLC, said:
"Further strength in Informa's subscriptions-led businesses and
measured confidence in the progressive return of physical events
in Mainland China, North America and the Middle East, is delivering
further Stability and Security."
He added:
"We remain on track to deliver our revenue commitments through
the 2021 Transition Year, whilst continuing to generate positive
cashflows. Improving growth in subscriptions, ongoing expansion
in Digital Services and the enduring strength of our B2B brands
and platforms, gives us increasing confidence in Revitalisation
and Growth through 2022-2024."
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Key Highlights
Following Informa's 2020 Full Year Results published on 22 April
2021, the Group has continued to trade in line with expectations
and remains on track to deliver the baseline revenue target for the
year of at least GBP1.7bn, as well as remaining cashflow positive,
underpinned by improving underlying revenue growth in our two
Subscriptions-led businesses.
This is supported by further expansion in B2B Digital Services
and the progressive return of physical events, led by Mainland
China, but with measured confidence in return and recovery across
our major brands in the Group's two other major markets, the US and
Middle East.
Actions to preserve cash and manage our costs through 2020
continue to provide strength and flexibility in our balance sheet.
This strong financial position, combined with increasing confidence
in the 2022-2024 growth outlook for the Group, was underscored by
all three major credit rating agencies post-results, with each
confirming investment grade status for Informa, including an
inaugural rating by Fitch (BBB-, Stable Outlook), alongside
Standard & Poors (BBB-, Negative Outlook) and Moody's (Baa3,
Negative Outlook).
Taylor & Francis
Our strategy to modernise Taylor & Francis through
investment in digital services and accelerated new product
development continues to deliver benefits. The business continues
to demonstrate resilience, supported by a broader mix of products,
services and funding sources and a wider base of customers.
In Open Research Services, the Group continues to expand and
improve its offering, both in the range of services and products
through platforms like F1000, and in the quality of the user
experience, as well as speed-to-market, which are becoming
increasingly valued by researchers and authors. This is translating
into further strong growth, with open research submissions seeing
further double-digit growth, which in turn is driving corresponding
article publication and revenues.
The combination of continuing strength in our core subscriptions
business, improving trends in royalty-based publishing and further
acceleration in open research services, gives us increasing
confidence in the outlook for Taylor & Francis. The business is
on track to return to pre-COVID levels of growth in 2021, with the
potential for further improvement in the 2022-2024 Revitalisation
and Growth period.
Informa Intelligence
The benefits of consistent investment in our products, in our
platforms and in our service offering to customers, combined with
increasing portfolio focus, are delivering consistent levels of
growth in our specialist information and data business. We remain
confident of meeting our target for 4%+ underlying growth in
2021.
All three core market businesses of Pharma (including clinical
trials intelligence and MedTech market data), Finance (including
mortgage pricing intelligence and international fund flow data) and
Maritime (including real-time tracking of global shipping and
cargo) are in growth, with positive annualised contract values and
strong 90%+ renewal rates. The clinical trials business, in
particular, is benefiting from a consistently high level of
investment in enhanced technology applications, as well as our
recent expansion into patient recruitment through Trialscope, where
we are developing a strong niche position.
Our recent expansion in the retail banking information market,
through the combination of FBX with Novantas, is also progressing
well. The agreement has now received regulatory approval and Mark
Greene, the former CEO of Fair Isaac Corporation, has been
appointed as independent non-executive Chair. A programme of work
is now underway to establish a new brand and go-to-market
proposition for the combined business, with further details to
follow at our Half-Year Results in July.
As part of our ongoing commitment to portfolio focus in Pharma,
Finance and Maritime, we have launched a review of our Asset
Intelligence portfolio of businesses: Barbour ABI (UK construction
industry data and intelligence), Barbour EHS (health and safety
data and intelligence) and Asset Intelligence (pricing data and
intelligence on industrial machinery). All are now growing
businesses, with strong market positions and highly valuable niche
brands. As a result, it is now the right time to review the best
way to drive future growth and value, either inside or outside of
Informa. We aim to conclude this review by the end of 2021.
Informa Markets / Informa Connect / Informa Tech
Across our portfolio of B2B brands and platforms, we are
remaining flexible in our operating approach through the 2021
Transition Year, staging physical events as geographical markets
open up, whilst continuing to expand our range of B2B Digital
Services. This includes our specialist content and marketing
services activities, as well as an ongoing commitment to virtual
and hybrid events which complement and extend our physical event
brands.
In Mainland China, the return of physical events continues at
pace. Almost a year on from when Informa staged its first physical
event post-COVID, we are seeing some domestically focused brands
return close to pre-COVID levels of revenue and participation. This
was demonstrated most recently within Beauty & Personal Care,
with more than 200k exhibitors and attendees at China Beauty Expo
in Shanghai.
In our other major markets in North America and the Middle East,
we are gradually seeing more restrictions relaxed and permissions
to stage events granted, providing measured confidence in the
progressive return of our major brands and the potential for
recovery post-COVID. Similar to Mainland China, participation and
revenues are expected to build over time, as confidence recovers
and brands progressively return to their traditional industry
calendar slots.
Separately, we continue to invest in the development of Iris,
our centralised platform for collating, curating and managing all
our customer profiles and behavioural data from our B2B events and
digital services. Our objectives here are data accurate customer
insights and market knowledge, higher value buyer/seller
connections and the development of a further range of B2B digital
and data services.
2021 Half-Year Results
The Group will publish its Half Year Results on 29 July 2021,
when there is expected to be greater clarity on the likely shape of
the Transition Year and the potential pace and rate of return
through the 2022-2024 period of Revitalisation and Growth.
Enquiries
Informa PLC
Stephen A. Carter, Group Chief Executive
Gareth Wright , Group Finance Director +44 (0)20 7017 5771
Richard Menzies-Gow , Director of IR +44 (0)20 7017 7096
& Comms +44 (0)20 3377 3445
Teneo Strategy
Tim Burt / Zoë Watt +44 (0)20 7240 2486
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Notes to Editors
Informa PLC
Informa is a leading international Information Services,
Advanced Learning, B2B Exhibitions and Events Group. It helps
commercial, professional and academic communities work smarter and
make better decisions faster, through specialist content and
intelligence, and opportunities to connect and learn. For more
information, please visit www.informa.com .
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