TIDMINF
RNS Number : 0609P
Informa PLC
16 June 2022
Informa PLC Press Release
16 June 2022
Robust Trading, Increased Portfolio Focus and Accelerating
Shareholder Returns
Robust Trading: Strong performances in all businesses, on track
for upper end of market guidance
Increased Portfolio Focus: GBP1.9bn value created through Pharma
Intelligence agreement
Accelerating Shareholder Returns: Share buyback programme
increased from GBP300m to GBP725m
Informa (LSE: INF.L), the international Academic Markets, B2B
Markets and Digital Services Group is today reconfirming full year
guidance on the back of robust year-on-year trading. The Group,
which is issuing a trading update to coincide with its Annual
General Meeting, also reported continued progress on the 2021-2024
Growth Acceleration Plan II ("GAP II").
Stephen A. Carter , Informa Group Chief Executive said:
"Our GAP II programme is delivering growth, portfolio focus and
shareholder returns. Today we are reporting robust and consistent
trading and are reconfirming guidance, which combined with strong
divestment returns allows us to expand our share buyback programme
to GBP725m, whilst significantly strengthening our balance sheet."
He added:
" We welcome the progressive reopening of Mainland China whilst
continuing to monitor broader market fluctuations and macro volatility
. Notwithstanding these external factors, we are confident in
our ability to deliver on our forward growth ambitions, underpinned
by the resilience of our subscription businesses, the continuing
return of Live and On-Demand Events, and our growing range of
Digital Services."
Trading Highlights
-- Robust trading: Group underlying revenue growth of 40%+, with
improving growth in Academic Markets (3.5% to end May), a strong
return in Live and On-Demand Events (100%+) and continued momentum
in B2B Digital Services (10%+). On track for upper-end of 2022
guidance, supported by continuing return in all geographies and
progressive re-opening in Mainland China. Full year growth in
revenue, adjusted operating profit and earnings per share expected
to be above historical trends.
-- Increased portfolio focus : Completion of GBP1.9bn Pharma
Intelligence agreement, with additional future returns through 15%
equity interest in the ongoing business. Next package of portfolio
divestment, Financial Intelligence, progressing well with continued
significant interest;
-- Strong cash generation: The Company's deliberate shift to
implement enhanced cash management processes and challenging cash
metrics is continuing to deliver benefits, with further strong cash
conversion and free cash flow generation over the first five months
of the year;
-- Strengthened balance sheet: Strong free cash flow and the
divestment of Pharma Intelligence effectively reduces net debt to
zero, significantly strengthening the balance sheet and providing
additional funds for growth and reinvestment. Outlook upgraded to
Stable by major credit ratings agencies (S&P Global,
Moodys);
-- Accelerating shareholder returns: Share buyback programme
further expanded from GBP300m to GBP725m, representing c.50% of
post-tax cash proceeds received to date from the delivery of GAP II
Portfolio Focus. Expanded programme will take us through to
year-end 2022, with 50.3m shares purchased so far this year,
equating to c.GBP290m of capital returned to shareholders.
-- Value in verticalisation: Informa's strategy of Market
Specialisation is accelerating through continued expansion in
On-Demand and B2B Digital Services in key markets. This is most
evident in Informa Tech, where the NetLine addition has added
content syndication and platform capabilities, helping to further
expand the volume, quality and engagement of our Tech audiences and
accelerating the development of targeted lead generation
services.
Trading Update
Guidance re-confirmed at upper end of range
Trading through the first five months of 2022 has been robust
across both our Academic Markets and B2B Markets businesses, with
Group underlying revenue growth of more than 40%+.
Markets are open or opening in all our geographies around the
world and with Mainland China restrictions now progressively being
removed, our current assumption is we will resume Live B2B Events
in that region from the third quarter.
On that basis, the Group's performance year to date, combined
with strong forward visibility on subscriptions revenues in Taylor
& Francis and exhibitor and delegate bookings in Live and
On-Demand Events, and favourable currency trends, puts the Group on
track for the upper-end of the full year guidance range provided at
our 2021 Full Year Results in March (Revenue of GBP2,150m-GBP2,250m
and adjusted operating profit of GBP470m-GBP490m).
Academic Markets & Knowledge Services
Taylor & Francis is continuing its track record of
consistent growth, delivering underlying revenue growth of 3.5%
through the first five months of 2022 and on-target for 3% across
the full year. This reflects consistent performances in Pay to Read
Subscriptions and Advanced Learning, and further strong growth in
Pay to Publish services.
In Pay to Read, Subscription renewals remain high, underpinned
by continued strong volumes of research submissions, which is
translating into consistent levels of validated and trusted
specialist subscription content. In Advanced Learning, increased
discoverability of content and continued strength in eBooks is
delivering solid growth, most notably in our Professional and
Self-Learning categories.
In Pay to Publish, our GAP II investments to broaden our range
of services, improve customer marketing and drive submission rates,
continue to deliver benefits, with further strong revenue growth so
far in 2022.
Continued expansion in this area, which widens our addressable
market beyond University Libraries into deeper global research and
development funding, underpins our underlying growth target of 4%+
across our Academic Markets business by the end of GAP II.
B2B Markets & Digital Services
The Group's three B2B businesses (Informa Markets, Informa
Connect, Informa Tech) are all trading strongly year to date, in
aggregate delivering 90%+ underlying revenue growth across the
first five months of the year.
Live Events continue to return at pace across North America, the
Middle East, Europe, ASEAN and Latin America, with customer demand
stronger than anticipated and post-show feedback very positive,
with record net promotor scores underpinning high levels of
rebooking, back at pre-pandemic levels.
In total, we have run more than 200 Live Event brands across the
world this year, attracting more than 1m participants, over 25k
exhibitors and generating more than GBP400m of revenue.
In Mainland China, COVID restrictions have limited the ability
to run Live Events through the first half and whilst this will
inevitably lead to some revenue leakage, our teams adapted quickly
to reschedule our major brands to the second half of the year. With
restrictions now progressively being removed we are planning to run
the first of these major brands in August and, on that basis, we
currently expect to deliver 60%+ of the revenue we budgeted for the
region this year.
As Live Events return, we are progressively embedding more
digital and on-demand capability in and around the core product in
areas such as registration, enhanced use of digital product
discovery and downloads, lead identification and customer
connectivity. This is increasing utility and value for customers,
enhancing the overall volume and quality of data capture and
underpinning pricing, yields and growth.
In addition, through GAP II, the Group continues to invest in
broader product diversification through a range of B2B Digital
Services. Underpinning all our digital developments is the
continued roll out of IIRIS, our centralised B2B customer data and
analytics platform. As we embed its registration, tracking and
segmentation service offerings across core verticals, the increased
volume and quality of data is enhancing our existing business
through more effective sales and marketing, and building a
consented first party data engine to fuel the development of lead
generation, lead qualification and audience development products
and services.
Informa Tech is at the forefront of these developments,
reflecting its broad portfolio of specialist B2B Media, B2B Events,
Data and Research brands and a more developed customer market for
data-driven lead generation services. The addition of NetLine has
accelerated our market knowledge and understanding of data
discipline, content syndication and buyer intent, as well as
underlining the critical importance of curated specialist content
to maintain the quality and high level of engagement with our
targeted audiences.
Accelerating Shareholder Returns
Completion of Pharma Intelligence agreement for GBP1.9bn
The GBP1.9bn Pharma Intelligence transaction completed on 1 June
2022, with the Group receiving c.GBP1.7bn in cash before tax
deductions and retaining a c.15% shareholding in the ongoing
business. It is expected that tax deductions will amount to a
little over GBP200m, payable through the second half of 2022.
The follow-on process for our Financial Intelligence portfolio
is now underway and is attracting strong interest. Our Maritime
Intelligence business, the smallest and most blended portfolio,
with a mix of B2B Media, B2B Events, Data and Intelligence
products, will be the last portfolio to be reviewed in the second
half of the year.
Following the completion and receipt of cash for Pharma
Intelligence, Informa is expanding its GAP II Shareholder Returns.
This began in February, when we commenced a share buyback
programme, initially up to GBP100m, which was subsequently expanded
to GBP300m.
After significant shareholder consultation, we can confirm our
approach to shareholder returns will continue to focus on share
buybacks, and so we are expanding our programme from GBP300m up to
GBP725m, which represents c50% of the post-tax cash proceeds
received to date from our approach to GAP II Portfolio
Focus.(1)
Around GBP290m of shares have been acquired in the market so far
in 2022, at an average share price of 575.7p, leading to the
cancellation of 50.3m shares. Today's expansion of the programme is
expected to see the Group maintain the current level of buybacks
through to year-end.
As previously announced, separate to the Share Buyback
Programme, Informa PLC will be re-starting ordinary dividends at
the time of our Interim Results in July 2022.
Board update
Informa will today host its 2022 Annual General Meeting at 11am
at its offices at 240 Blackfriars, London, SE1 8NW. Over the last
twelve months, the Board has undergone significant change and
replenishment, adding three new Non-Executive Directors, the
appointment of a new Chair, new Senior Independent Director, new
Chair of Audit and new Chair of the Remuneration Committee. It has
also consulted extensively with shareholders on a new, post-COVID
Remuneration Policy, for which it is seeking approval at the
AGM.
Stephen Davidson, who has been a Non-Executive Director on the
Board for the past seven years and who was yesterday appointed as
Chair of Calnex Solutions plc alongside his other responsibilities,
will not seek re-election as an Informa Director at today's
AGM.
Full details of all the other resolutions being presented to
shareholders are included with the 2022 AGM Notice, which is
available at
www.informa.com/investors/shareholder-centre/general-meetings.
Enquiries
Stephen A. Carter , Group Chief Executive +44 (0) 20 8052 0400
Gareth Wright, Group Finance Director +44 (0) 20 8052 0400
Richard Menzies-Gow, Director of IR
& Communications +44 (0) 20 8052 2787
Tim Burt / Simon Duke - Teneo +44 (0) 20 7240 2486
------------------------------------------ --------------------
Notes to Editors
(1) At today's AGM, Informa will seek authorisation to continue
to purchase its own ordinary shares. The maximum number of
additional ordinary shares that may be repurchased under those
authorities is 147,771,000, and the authority will apply until the
earlier of the conclusion of the Company's next AGM or close of
business on 15 September 2023.
As such, Informa has extended its irrevocable and
non-discretionary arrangement with Merrill Lynch International, and
entered into an irrevocable and non-discretionary arrangement with
Morgan Stanley & Co. International Plc, to purchase, subject to
authorisation being granted at the AGM, on its behalf and within
certain pre-set parameters, ordinary shares of 0.1 pence each in
the Company, with the intention to cancel those shares
purchased.
The share buyback programme will take place in accordance with
the Company's approved buyback authorities and be effected in
accordance with Chapter 12 of the FCA's Listing Rules. The
programme will recommence shortly and run through the Company's
close period (30 days from 28 June 2022 to 27 July 2022).
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END
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