TIDMINF
RNS Number : 5251F
Informa PLC
10 March 2020
Informa LEI: 5493006VM2LKUPSEDU20
Informa PLC Press Release
10 March 2020
Results for 12 months to 31 December 2019
2019: Continued Growth & Delivery
2020: Market Specialisation & Growth
2020: COVID-19 in-year implications
Informa (LSE: INF.L), the International Exhibitions, Events,
Information Services and Advanced Learning Group, releases results
for the 12 months to 31 December 2019, reporting continuing
benefits of Market Specialisation, including further revenue growth
and strong cash generation.
2019 Financial Highlights
-- Strong revenue growth: +22.0% reported growth and +3.5%
underlying(1) , reflecting full year of UBM
-- Improved Adjusted Operating Profit growth(1) : +27.5% reported growth and +6.5% underlying(1)
-- Higher Statutory Operating Profit: +48.2% growth to GBP538.1m (2018: GBP363.2m)
-- Increased Adjusted Diluted Earnings per Share(1) : +4.3%
growth to 51.3p (2018: 49.2p), reflecting timing of UBM addition
and share issue; pro-forma EPS growth of +16.1%
-- Lower Statutory Diluted Earnings per Share: 18.0p compared to
19.7p in 2018, reflecting full-year impact of UBM, primarily the
higher share count and amortisation levels;
-- Strong Free Cash Flow(1) : GBP722.1m versus GBP503.2m in 2018;
-- Strengthened Balance Sheet: Reduction in leverage ratio to
2.5x, in line with plan (2018: 2.9x)
-- Enhanced Dividend per Share: Proposed final DPS +7.4%,
delivering total DPS of 23.5p (2018: 21.9p)
Stephen A. Carter, Group Chief Executive, Informa PLC, said:
"In 2019, the Informa Group delivered a sixth consecutive year
of growth in revenues, adjusted operating profits, adjusted earnings
per share, free cash flow and dividends."
"Over the past six years, we have been refocusing The Informa
Group on specialist markets, building brands and deploying technology,
to deliver consistent returns for our customers and our shareholders.
"
He added:
"Our subscriptions-related businesses, which account for around
35% of revenue, continue to grow consistently. However, we are
facing a 2020 impact from COVID-19 in our Events-related businesses
and so we have used our strong customer and supplier relationships
to swiftly deploy a material Postponement Programme, shifting
our Events Calendar to later dates in 2020. Our Brands and strong
platforms continue to provide attractive opportunities for further
market specialisation and future growth."
He concluded:
"As an international business, with Colleagues and Customers around
the world, since January we have been closely following relevant
national authority guidelines and advice, and putting in place
support, communications and in-market response. Our thoughts are
with those directly affected and our priorities are with Colleagues,
and serving and supporting our Customers for the long-term."
(1) In this document we refer to non-statutory measures
including underlying and adjusted results; these are defined in the
Financial Review on page 11 and Glossary on page 48.
2019 Divisional Highlights
Continued Growth and Delivery in 2019, with Group underlying
revenue growth of 3.5%(1) :
-- Informa Markets: Increased international breadth and depth
within specialist markets delivered underlying revenue growth(1) of
+4.3%. Reported growth of +40.5%, including a full year of UBM;
-- Informa Connect: Continued focus on major B2B brands in
Pharma and Finance delivered further improvement, with underlying
revenue growth(1) of +2.9%. Reported revenues -0.7%, reflecting the
sale of the Life Sciences Media Portfolio in January 2019;
-- Informa Tech: Solid performance in year of combination and
creation, whilst building strong foundations for future growth.
Underlying revenue growth(1) of +2.0% and reported revenue growth
of +46.0%, the latter including a full year of UBM and five months
of the IHS Markit TMT Portfolio;
-- Informa Intelligence: Increased focus on strongest brands in
attractive specialist markets delivered an increase in underlying
revenue growth(1) to +3.3%. Reported revenues at -0.7% after
divestiture of Agribusiness portfolio at end of June and Industry
& Infrastructure portfolio in October;
-- Taylor & Francis: Solid subscription renewals, strong
momentum in Open Access and steady performance in advanced learning
products delivered robust underlying revenue growth(1) of +2.4%.
Reported revenue growth of +5.0%, benefiting from positive currency
tailwinds.
Key Operational Highlights
Following the completion of the Accelerated Integration Plan
("AIP"), Informa is operating as one business, with a resilient and
balanced international platform built for further Market
Specialisation and future growth. Our focus is on:
-- Expanding our portfolio of B2B products and knowledge
services: By broadening and strengthening our range of B2B services
and advanced learning products for specialist markets, we have the
opportunity to sell more services to more customers, including in
events, data, digital, content, open access, consulting, research,
media and marketing services;
-- Enhancing our position in specialist markets through targeted
expansion: We are continuing to target additions and partnerships
that deepen our connections and add new capabilities in attractive
specialist markets; Partnership with Bologne Fiere in Beauty,
addition of F1000 in Open Research and Publishing Services and
joint venture with Founders Forum in Tech;
-- Strengthening our operating capability: Building on our
operational fitness programme we are further simplifying and
consolidating systems and strengthening operating capabilities in
key areas, including product development, product management, data
management and marketing automation;
-- Advancing our commitment to Sustainability: We are launching
a five-year programme called FasterFoward to become fully carbon
neutral by 2025 and net zero carbon by 2030, whilst also putting
Sustainability Inside all our Brands by 2025, thereby making
Informa a Champion of Sustainability within our own business and
across the specialist markets we serve;
-- Improving our Financial Fitness: We are continuing to use the
strength and scale of our cash flows and flexible, long-term
financing to maintain a strong balance sheet and underpin our
dividends.
(1) In this document we refer to non-statutory measures
including underlying and adjusted results; these are defined in the
Financial Review on page 11 and Glossary on page 48.
Enquiries
Stephen A. Carter, Group Chief Executive +44 (0) 20 7017 5771
Gareth Wright, Group Finance Director +44 (0) 20 7017 7096
Richard Menzies-Gow, Director of IR
& Communications +44 (0) 20 3377 3445
Tim Burt / Zoe Watt - Teneo +44 (0) 20 7240 2486
----------------------------------------- --------------------
2019 Financial Highlights
2019 2018 Reported Underlying(1)
GBPm GBPm % %
----------------------------------------------------------- ----------- ----------- ----------- ------------------
Revenue 2,890.3 2,369.5 22.0 3.5
Statutory operating profit 538.1 363.2 48.2
Adjusted operating profit(2) 933.1 732.1 27.5 6.5
Adjusted operating margin (%)(2) 32.3 30.9 4.5
Operating cash flow(2) 965.4 667.9 44.5
Statutory profit before tax 318.7 282.1 13.0
Adjusted profit before tax(2) 821.4 649.7 26.4
Statutory diluted earnings per share (p) 18.0 19.7 (8.6)
Adjusted diluted earnings per share (p)(2) 51.3 49.2 4.3
Dividend per share (p) 23.5 21.9 7.3
Free cash flow(2) 722.1 503.2 43.5
Net debt (inc IFRS 16)(2) 2,657.6 2,681.9 (0.9)
----------------------------------------------------------- ----------- ----------- ----------- ------------------
2019 Divisional Highlights 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- -------- -------- --------- --------------
Informa Markets
Revenue 1,450.2 1,032.2 40.5 4.3
Statutory Operating Profit 247.1 135.6 82.2
Adjusted Operating Profit(2) 493.3 357.4 38.0 7.5
Adjusted Operating Margin(2) (%) 34.0 34.6
---------------------------------- -------- -------- --------- --------------
Informa Connect
Revenue 275.6 277.5 (0.7) 2.9
Statutory Operating Profit 22.8 15.3 49.0
Adjusted Operating Profit(2) 47.2 45.8 3.1 (1.5)
Adjusted Operating Margin(2) (%) 17.1 16.5
---------------------------------- -------- -------- --------- --------------
Informa Tech
Revenue 256.2 175.5 46.0 2.0
Statutory Operating Profit 35.9 10.1 255.4
Adjusted Operating Profit(2) 70.4 40.1 75.6 7.1
Adjusted Operating Margin(2) (%) 27.5 22.8
---------------------------------- -------- -------- --------- --------------
Informa Intelligence
Revenue 348.7 351.1 (0.7) 3.3
Statutory Operating Profit 68.8 66.7 3.1
Adjusted Operating Profit(2) 104.1 91.4 13.9 11.3
Adjusted Operating Margin(2) (%) 29.9 26.0
---------------------------------- -------- -------- --------- --------------
Taylor & Francis
Revenue 559.6 533.2 5.0 2.4
Statutory Operating Profit 163.5 137.3 19.1
Adjusted Operating Profit(2) 218.1 197.4 10.5 3.6
Adjusted Operating Margin(2) (%) 39.0 37.0
---------------------------------- -------- -------- --------- --------------
(1) In this document we refer to Underlying and Reported
results. Underlying figures are adjusted for acquisitions and
disposals, the phasing of events including biennials, the impact of
changes from implementing new accounting standards and accounting
policy changes, and the effects of currency changes. It includes,
on a pro-forma basis, results from acquisitions from the first day
of ownership in the comparative period and excludes results from
sold businesses from the date of disposal in the comparative
period. Reported figures exclude all such adjustments. Alternative
performance measures are discussed in the Glossary.
(2) In this document we also refer to Statutory and Adjusted
results, as well as other non-statutory financial measures.
Adjusted results are prepared to provide an alternative measure to
explain the Group's performance. Adjusted results exclude adjusting
items as set out in Note 7 to the Financial Statements. Operating
cash flow, free cash flow, net debt and other non-statutory
measures are discussed in the Financial Review and the
Glossary.
The 2020 Impact of COVID-19
In 2020, our subscriptions-related businesses, representing
around 35% of Group revenue, continue to trade well, underpinned by
strong Renewal Rates, at 90%+ on average, and consistent low to
mid-single digit growth in Annualised Contract Values. However,
like a number of businesses, we are seeing an impact from the
outbreak of COVID-19 within our Events portfolio. We are making all
the decisions necessary to look after colleagues and customers and
ensure the long-term strength of our brands and customer
relationships.
As the implications of COVID-19 started to become apparent in
late January, initially in Mainland China, we moved quickly to
implement our COVID-19 Action Plan, creating an internal framework
for decision-making and actions to support Colleagues, Customers
and the specialist Communities we serve.
This included the launch of a Postponement Programme to
Re-Schedule and Re-Phase our event brands, ensuring we made the
right decisions for our Customers, for the Brands we own and
operate, and for the specialist Communities we serve and
support.
As of 10 March 2020, across the Group we have successfully
agreed or are in the process of agreeing the Re-Scheduling of
around 45 large event brands to a date later in 2020, representing
budgeted revenue of around GBP350m. Around 70 smaller brands have
also been Re-Scheduled with revenue of around GBP50m. In addition,
we have Localised or Virtualised several brands to deliver the best
solution for customers in those markets this year. We have also
Re-Phased (biennials)/Cancelled 13 brands in 2020, with budgeted
revenue of GBP25m.
For those brands we have Re-Scheduled, Localised or Virtualised
in 2020, we would expect to incur some incremental investment in
venue capacity, customer marketing and other duplicative costs of
Re-Scheduling and Virtualisation, subject to in-market support
budgets and insurance outcomes.
Implicit in all our decisions so far, has been the wellbeing of
Colleagues and Customers and this will remain our priority going
forward. It is testament to the foresight and commitment of our
teams around the world that, in very challenging circumstances, we
have stayed resilient and continued to find solutions to serve and
support our customers and the communities of which we are a
part.
At this point we are not providing market guidance for the
Informa Group in 2020.
Trading Outlook
Our strategy over the last six years has been to progressively
build a business with international reach and depth in a range of
attractive specialist markets. We have a strong presence in all
major geographic regions and a portfolio providing visibility,
balance and breadth.
Subscriptions-related Businesses (c.35% of Group Revenue):
This portfolio includes a range of subscription-related,
specialist knowledge and information businesses. These businesses
continue to grow consistently in 2020, with minimal impact to date
from the outbreak of COVID-19, underpinned by forward-booked
subscriptions that provide visibility and predictability, as well
as attractive cash flows.
Informa Intelligence
Following a period of targeted portfolio management, Informa
Intelligence is more focused on attractive and growing specialist
markets where we have strong brands and market positions.
This focus, supported by continuous investment in our product
and platform capabilities, is delivering good performances so far
in 2020, particularly in our clinical trials business in Pharma
(Citeline), our fund flow business in Finance (EPFR Global) and our
shipping intelligence business in Maritime (Lloyd's List
Intelligence).
Annualised contract values continue to grow consistently, and
renewal rates remain high, at around 90% on average. This provides
strong visibility and confidence we can further improve underlying
growth (1) in 2020.
Taylor & Francis
The market for verified and trusted, specialist knowledge
continues to grow, and is matched by the range of new formats and
distribution models. In this context, our strategy to invest in the
quality and integrity of our content, whilst remaining flexible
with customers, is delivering steady and predictable
performance.
In January 2020, we added F1000 Research to the portfolio, a
leader in open research publishing. This complements and extends
our programme of investment to strengthen our presence and
capabilities in the increasingly important Open Access publishing
arena.
After a strong end to 2019, trading remains solid in the early
part of 2020, with robust subscription renewals, continued positive
momentum in Open Access publishing and a steady performance in our
Advanced Learning products. With good forward visibility and a
solid pipeline of future activity, we are confident we can once
more meet our annual target for underlying revenue growth (1) in
2020.
Informa Tech: Research & Data (c.20% of divisional
revenue)
Our specialist research and data businesses within Informa Tech
were recently relaunched as Omdia, combining the strengths of Ovum,
Tractica and Heavy Reading, amongst others, with the IHS Markit TMT
portfolio, to offer customers a deep pool of specialist research
and analyst expertise.
As Omdia builds its reputation in the market, starts to launch
new products and focuses on greater collaboration and
cross-marketing with the events brands within Informa Tech, we are
targeting steady and consistent improvement in growth.
Events-related Businesses (c.65% of Group Revenue):
Our events businesses generate revenue through a range of
activities, including through exhibitors and attendees, as well as
sponsorship, digital, data, content and marketing services. All
three divisions entered 2020 with positive momentum and a strong
pipeline of activity and forward bookings. As the impact of
COVID-19 became clear, through our Postponement Programme we began
Re-Scheduling Brands, with around 45 large Events now agreed or in
the process of agreeing a move to later in 2020.
The strength of our brands and customer relationships put us in
a strong position to recover once the current disruption is past,
but in 2020 all three events businesses will see an impact from
COVID-19.
Informa Markets
Our portfolio of 450+ B2B brands has international reach and
breath, with around 40% of revenue in North America, 30% in Asia,
10% from the Middle East and the remainder across Europe and the
rest of the world.
Trading in the early part of the year was encouraging, with
strong forward bookings and good performances in Pharma &
Healthcare (Arab Health) and Construction & Real Estate (World
of Concrete), as well as an improving trend in Fashion (Magic).
Informa Connect
Our branded confex and content business continues to benefit
from greater focus on its major brands within specialist markets,
with our top 50 brands now representing around 50% of divisional
revenue.
This improvement in mix and quality was reflected in some good
performances in the early months of 2020, including in Global
Finance (SuperReturn International) and Life Sciences (BioTech
Showcase).
Informa Tech: Events (c.80% of divisional revenue)
The creation of Informa Tech in 2019 saw us establish our first
market-based division, bringing together all our B2B brands that
serve the Tech market through events, data, media, research and
training products.
Unlike in Informa Markets and Informa Connect, our major Events
Brands in this business were already weighted towards the second
half of the year, including in key segments like Cybersecurity
(Black Hat) and Artificial Intelligence (AI Summit). As we reap the
benefits of combination and scale, our target is for steady and
consistent improvement in growth across the division.
Operational Review
Since 2014, we have been pursuing a growth strategy, built
around specialist markets. The 2014-2017 Growth Acceleration Plan
("GAP") saw us reorient the group around customers and invest to
improve operational fitness, modernise our platforms and bring
fresh talent and experience to the Group. We also started to build
a position in the Exhibitions market, Identifying, Acquiring and
Integrating a series of international businesses to deepen our
connections in specialist markets.
In 2018-2019, through the Accelerated Integration Plan ("AIP"),
we combined two highly complementary portfolios that further
extended our reach and depth in specialist markets and created a
business of scale and quality in fast-growing Asian markets.
Accelerated Integration Plan ("AIP") completed on schedule
Our 12-month programme to combine UBM into Informa completed in
June, delivering benefits across six key areas:
-- AIP Operating Model: We adapted our divisional structure and
operating model to further increase the focus and orientation
around specialist markets;
-- AIP Leadership & Talent: Teams were combined and
leadership structures confirmed to enable the Group to go to market
as a single, unified business around the world;
-- AIP Operating Synergies: We removed duplication in central
functions, simplified systems and structures and rationalised
overheads to deliver more than GBP50m of savings in 2019;
-- AIP Fashion GAP: We injected fresh leadership into the
Fashion business and developed a three-year plan to return to
growth, with the initial focus on operational fitness, venues and
scheduling.
-- AIP Portfolio Management: We reviewed and divested several
portfolios and businesses, increasing our focus on specialist
markets where we have strong brands and market positions;
-- AIP Brand, Identity & Culture: We retired the UBM brand
and launched a brand platform for the enlarged Group, including an
updated Group purpose and set of guiding principles.
A number of combination activities remain ongoing, mainly in
relation to systems simplification and the consolidation of back
office services, but the Group is now operating as one business,
with a platform built for further Market Specialisation and future
growth.
Board strength and succession
With the AIP complete, there was a natural evolution in the mix
and composition of the Group Board of Directors during 2019, as
several Non-Executive Directors completed terms on the Board. This
led to the appointment of Gill Whitehead as Non-Executive Director
in August, bringing significant digital, data and analytics
experience to the Group from her time at Google and elsewhere.
In January, we also announced that, having completed a full term
at the Group, and with the integration of UBM complete, we had
started a process to identify a successor for our Chairman, Derek
Mapp. A new Chair is expected to be in place by the end of 2020,
following an appropriate handover period.
Market Specialisation and Growth
Our approach to Market Specialisation is seeing us move deeper
into a range of specialist markets. The creation of Informa Tech is
the best example of this commitment, bringing all our brands
serving the Tech market together and investing to further
strengthen our position across subject categories and
geographies.
More broadly, Market Specialisation sees us focused on a number
of areas:
-- Expanding our portfolio of B2B Products and Services: As we
deepen our knowledge and connections in specialist markets, our
relationship with customers is evolving. The closer we get to the
fabric of these professional communities, the more we become part
of these markets and the greater the opportunity to add value and
create opportunities for customers and ourselves.
In Health & Nutrition our portfolio of international brands
(Natural Products Expo, Vitafoods, SupplySideWest) spans the supply
chain, from ingredients to finished products, giving us depth of
knowledge and an extensive network of industry relationships. This
depth and proximity is enabling us to sell a broader set of B2B
products and services to customers, ranging from digital platforms,
to data, research, consulting, media and marketing services.
We are following this approach in other specialist markets. For
example, we have a growing portfolio of B2B services in Pharma and
Aviation, amongst others.
-- Enhancing our market positions through targeted expansion and
partnerships: Our strength in Identifying, Acquiring and
Integrating businesses gives us long-term confidence to pursue
targeted additions and partnerships that enhance our position in
specialist markets. Recent examples include:
-- Beauty: We are currently exploring the potential to expand
our existing joint venture with Bologne Fiere to enhance and
accelerate our position in the international Beauty market. This
will build on the strength of our current partnership on Cosmoprof
Asia, the international reach and profile of the Cosmoprof brand,
and Informa's broader portfolio of brands and businesses serving
the Beauty market.
-- Open Research: In January we announced the addition of F1000
Research, which offers fully managed, open research publishing
services directly to research funders and learned societies. It is
also the leading independent open research publishing platform for
scientists and academic scholars, enabling the rapid publication of
research. It adds new capabilities to our portfolio and further
deepens our presence in the growing Open Access publishing
arena.
-- Technology: In November, we announced a joint venture with
Founders Forum, the leading community for entrepreneurs, investors
and leaders in the Digital, Media and Technology markets. This has
raised the profile of some of our events, such as London Tech Week,
benefiting from Founders Forum unique brand and high-profile
connections in fast-growth segments.
-- Strengthening our operating capabilities: A key feature of
GAP was investment in operational fitness, strengthening our
capabilities in key areas like product development and customer
management, whilst also improving the level of experience and
expertise in many central functions.
As we grow and expand, the operational demands on our business
continue to evolve. The number of customers and suppliers is
increasing, the volume of transactions rising, the number of
countries we operate in growing, and our product portfolio is
becoming broader and more complex.
Meeting these challenges whilst maintaining flexibility and
operational effectiveness, requires investment and discipline. Our
ongoing work to consolidate our technology platforms and simplify
back-office systems is an important component of this.
We also continue to invest in front office capabilities to stay
relevant, ensuring we innovate and adapt our products and platforms
to serve the changing needs of customers. This includes key areas
of product development, data management, sales effectiveness and
marketing automation.
-- Advancing our commitment to Sustainability: In 2014, we
strengthened our resources in sustainability, with a view to
improving sustainable practices across the Group. This led to
Informa achieving membership of the Dow Jones Sustainability Index
for the first time in 2018. We also received certification from the
Science Based Target Initiative for committing to do our part to
meet the goals of the 2015 Paris Agreement to combat climate
change.
Therefore today, Informa is launching FasterForward, a five-year
plan to further enhance Informa's sustainability practices, with a
goal to become a Champion of Sustainability within our own business
and across the specialist markets we serve.
This sees us commit to move Faster to Zero , with a goal to be
carbon neutral across our business and products by 2025 and net
zero carbon and zero waste by 2030 or earlier.
Across our markets, we are committing to put Sustainability
Inside all our brands by 2025 or sooner, ensuring our platforms for
sharing knowledge and connections are used to support sustainable
development and identify solutions to key issues in every
specialist market we serve.
Finally, we also recognise that our products deliver
efficiencies for customers, from knowledge transfer and
distribution, to idea exchange, decision making and investment,
sourcing suppliers, launching products, business meetings and
travel. For example, our events convene an industry or professional
community in one location to meet their shared goals, saving
attendees multiple flights to multiple locations to meet customers
individually. By focusing on improving the efficiencies we deliver,
we can help industries, companies and individuals improve their own
impact on the world. Our role as an Impact Multiplier, sees us
target saving our customers more carbon than we emit ourselves as a
company by 2025.
-- Improving our Financial Fitness: Following the completion of
the AIP, the enlarged Group delivered further consistent growth,
with high levels of cash conversion, leading to strong free cash
generation. In 2019, free cash flow(1) was GBP722m, up from just
GBP237m in 2014, providing significant flexibility for investment,
expansion and returns.
This cashflow underpins the 7% increase in dividends per share
we have proposed for 2019, which extends our track record of
consistent dividend returns to shareholders over the past six
years.
It also underpins a strong and flexible balance sheet, helping
us to meet our leverage target for 2019, with net debt to EBITDA
ending the year at 2.5 times.
In October, we strengthened our balance sheet further through a
EUR500m bond, lowering our cost of debt and allowing us to repay
the $350m bond due to mature in November 2020 and $185m of private
placement debt due to mature in December 2020.
More recently, in 2020, we secured a surplus, committed credit
facility of GBP750m which will provide full flexibility through the
current period of market volatility.
Following the pro-active management of our financing structure,
the Group's average maturity on its drawn borrowings is 5.6 years,
with no borrowing maturities until 2022, providing attractive and
secure long-term financing.
Divisional Trading Review
In 2019, the Informa Group's reported revenues increased +22.0%,
reflecting attractive underlying growth (1) (+3.5%), supported by
the benefits of targeted expansion, including a full year of UBM
(+15.3%), as well as a small phasing benefit (+0.2%) and positive
currency tailwinds (+3.0%). Adjusted operating profit (2) followed
a similar pattern, with underlying growth (1) of +6.5% reflecting
the effective delivery of combination synergies, with over GBP50m
realised in-year. Statutory operating profit increased with the
full year contribution of UBM.
The commentary below includes statutory and adjusted measures,
with adjusted operating profit a useful additional measure in
monitoring Divisional trading performance.
Informa Markets 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- -------- -------- --------- --------------
Revenue 1,450.2 1,032.2 40.5 4.3
Statutory Operating Profit 247.1 135.6 82.2
Adjusted Operating Profit(2) 493.3 357.4 38.0 7.5
Adjusted Operating Margin(2) (%) 34.0 34.6
---------------------------------- -------- -------- --------- --------------
Informa Markets creates platforms for industries and specialist
markets to trade, innovate and grow. Through more than 450
international B2B brands, we provide opportunities to engage,
experience and do business via face-to-face exhibitions, specialist
digital content and actionable data solutions.
In 2019, Informa Markets accounted for 50.2% of Group Revenue
and 52.9% of Adjusted Operating Profit. This included revenue of
GBP101m from biennial events.
Increased international reach and the continuing benefits of
market specialisation delivered further good underlying growth in
2019, with particular strength in Health & Nutrition (Natural
Products Expo West), Healthcare & Pharma (CPhI Worldwide) and
Hospitality & Food (Hotelex). This strong performance included
two market-specific, in-year impacts in Dubai and Hong Kong, as
well as the managed programme of change within Fashion, underlining
the strength in depth across our portfolio.
In total, the AIP delivered more than GBP50m of synergies in
2019, the majority falling within Informa Markets. At a reported
level, divisional margins were broadly consistent at 34%, with the
benefit of synergies offset by a full year of lower margin UBM
businesses, which were only included for six months in 2018.
Informa Connect 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- ------ ------ --------- --------------
Revenue 275.6 277.5 (0.7) 2.9
Statutory Operating Profit 22.8 15.3 49.0
Adjusted Operating Profit(2) 47.2 45.8 3.1 (1.5)
Adjusted Operating Margin(2) (%) 17.1 16.5
---------------------------------- ------ ------ --------- --------------
Informa Connect is our Content and Connectivity business,
organising content-driven events, training and programmes, that
provide platforms for professional communities to meet, network and
share knowledge. It has 500+ major brands, with particular
strengths in Biotech & Pharma and Finance & Investment.
In 2019, Informa Connect accounted for 9.5% of Group Revenue and
5.1% of Adjusted Operating Profit.
Our focus on major brands in specialist markets delivered
further improvement in underlying growth in 2019, with strong
performances in Biotech & Pharma (Bio-Europe) and Finance &
Investment (SuperReturn).
As part of the AIP, we sold the Life Sciences Media Portfolio in
January, lowering reported growth. We also absorbed our portfolio
of Real Estate and Consumer Brands in Canada into Informa Connect,
effective 1(st) January 2019, with 2018 figures restated to reflect
its inclusion. Increased investment in this business, combined with
the overall mix of profits in 2019, contributed to lower underlying
divisional profit in the year.
Informa Tech 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- ------ ------ --------- --------------
Revenue 256.2 175.5 46.0 2.0
Statutory Operating Profit 35.9 10.1 255.4
Adjusted Operating Profit(2) 70.4 40.1 75.6 7.1
Adjusted Operating Margin(2) (%) 27.5 22.8
---------------------------------- ------ ------ --------- --------------
Informa Tech informs, educates and connects specialist
Technology communities around the world. Through more than 100 B2B
brands, we provide specialist intelligence and knowledge, and build
platforms for customers to engage, learn and be inspired to create
a better digital world.
In 2019, Informa Tech accounted for 8.9% of Group Revenue and
7.5% of Adjusted Operating Profit.
In a year of combination and creation, Informa Tech performed
steadily, with strong performances in Security (Black Hat) and
Artificial Intelligence (AI Summit), amongst others. The priority
was to combine teams effectively, including those who joined with
the IHS Markit TMT Portfolio in August, and establish the brand in
the market. In February 2020, we further enhanced our proposition
through the launch of Omdia, a new business combining all our
specialist research and data businesses, including the IHS Markit
TMT Portfolio.
Reported growth and operating margins reflected the full year
impact of UBM and related synergies.
Informa Intelligence 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- ------ ------ --------- --------------
Revenue 348.7 351.1 (0.7) 3.3
Statutory Operating Profit 68.8 66.7 3.1
Adjusted Operating Profit(2) 104.1 91.4 13.9 11.3
Adjusted Operating Margin(2) (%) 29.9 26.0
---------------------------------- ------ ------ --------- --------------
Informa Intelligence provides specialist data, intelligence and
insight to businesses, helping to make better decisions, gain
competitive advantage and enhance return on investment. Through a
range of specialist B2B brands, we provide intelligence to niche
communities, including in Pharma, Finance and Maritime.
In 2019, Informa Intelligence accounted for 12.1% of Group
Revenue and 11.2% of Adjusted Operating Profit.
Increased focus around our major brands in Pharma (Citeline),
Retail Banking (FBX) and Maritime (Lloyd's List) delivered further
steady improvement in underlying growth, underpinned by strong
subscription renewals, steady new business activity and a solid
order book for project consulting.
The divestiture of our Agribusiness and Industrial portfolios
during the year adds further focus and momentum going forward.
These disposals are reflected in the reported revenue decline in
2019.
Taylor & Francis 2019 2018 Reported Underlying(1)
GBPm GBPm % %
---------------------------------- ------ ------ --------- --------------
Revenue 559.6 533.2 5.0 2.4
Statutory Operating Profit 163.5 137.3 19.1
Adjusted Operating Profit(2) 218.1 197.4 10.5 3.6
Adjusted Operating Margin(2) (%) 39.0 37.0
---------------------------------- ------ ------ --------- --------------
Taylor & Francis publishes peer-reviewed scholarly research
and specialist advanced learning products across subjects within
Humanities & Social Sciences and Science, Technology and
Medicine. It is recognised internationally through its major
publishing brands, including Taylor & Francis, Routledge and
CRC Press.
In 2019, Taylor & Francis accounted for 19.3% of Group
Revenue and 23.3% of Adjusted Operating Profit.
Our flexible approach, balancing customer needs with maintaining
the quality and integrity of our content, continues to deliver
results, with robust subscription renewals, steady performance in
advanced learning and strong Open Access momentum, which was
further buoyed by the recent addition of F1000 Research.
Higher operating margins in 2019 reflect the benefit of positive
currency tailwinds on statutory and adjusted operating profit, as
well as Taylor & Francis' share of central operating
efficiencies delivered by the AIP.
Financial Review
Income Statement
In 2019, Informa delivered a further year of increased revenue
and profit on an underlying, adjusted and statutory basis.
Adjusted Adjusting Statutory Adjusted Adjusting Statutory
results items results results items results
2019 2019 2019 2018 2018 2018
GBPm GBPm GBPm GBPm GBPm GBPm
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Revenue 2,890.3 - 2,890.3 2,369.5 - 2,369.5
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Operating
Profit/(loss) 933.1 (395.0) 538.1 732.1 (368.9) 363.2
(Loss)/profit on
disposal - (95.4) (95.4) - 1.1 1.1
Net finance costs (111.7) (12.3) (124.0) (82.4) 0.2 (82.2)
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Profit/(loss)
before tax 821.4 (502.7) 318.7 649.7 (367.6) 282.1
Tax(charge)/credit (156.1) 83.5 (72.6) (116.2) 55.7 (60.5)
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Profit/(loss) for
the period 665.3 (419.2) 246.1 533.5 (311.9) 221.6
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Adjusted operating
margin 32.3% 30.9%
Adjusted diluted
EPS 51.3p 18.0p 49.2p 19.7p
-------------------- -------------- --------------- -------------- -------------- --------------- --------------
Statutory income statement results
Statutory revenue increased by 22.0% to GBP2,890.3m, with growth
including the full year benefit of the UBM combination, the
business's underlying growth and favourable currency benefits. In
2019, there was a first full year of contribution from UBM,
compared to just six and a half months contribution in 2018.
Statutory operating profit increased by 48.2% to GBP538.1m,
reflecting a GBP201.0m growth in adjusted operating profit. This
also reflects UBM, underlying business growth and favourable
currency impacts, and partly offset by a GBP26.1m increase in
adjusting items charged to operating profit. These were largely
related to the UBM acquisition.
Statutory net finance costs rose GBP41.8m to GBP124.0m and
comprised GBP134.1m of finance costs and GBP10.1m of investment
income. The increase in finance costs reflects the full year impact
of the additional GBP1.2bn debt taken on to finance the UBM
addition in June 2018, the adverse currency impact on our largely
USD-denominated debt and the early repayment of borrowings to
refinance and take advantage of favourable market conditions.
Statutory profit before tax increased by 13.0% to GBP318.7m,
reflecting the GBP174.9m increase in operating profit, partly
offset by the GBP96.5m increase in loss on disposals and the
GBP41.8m increase in net finance costs.
The statutory tax charge for the year was GBP72.6m, representing
an increase of GBP12.1m compared to 2018. This increase was due to
the larger profit before tax and a higher statutory effective tax
rate of 22.8% compared to 21.4% in 2018.
Statutory diluted earnings per share decreased by 8.6% to 18.0p
(2018: 19.7p). This reflected a GBP174.9m increase in operating
profit in the year, offset by four main factors: the GBP41.8m
increase in finance costs, the GBP96.5m increase in losses on
disposals, a GBP12.1m increase in the tax charge and a 198.5m
increase in the weighted average number of shares, reflecting the
full year effect of the shares issued in 2018 to part-fund the
combination.
Measurement and Adjustments
In addition to statutory results, adjusted results are prepared
for the income statement. These include adjusted operating profit,
adjusted diluted earnings per share and underlying measures and a
full definition of these metrics can be found in the glossary of
terms on page 48. The Divisional table provides a reconciliation
between statutory operating profit and adjusted operating profit by
division.
Underlying revenue and adjusted operating profit growth on an
underlying basis are reconciled to reported growth as follows.
Underlying Phasing and other Acquisitions and Currency change Reported growth
growth items disposals
------------------- ----------------- ------------------- ------------------ ---------------- ----------------
2019
Revenue 3.5% 0.2% 15.3% 3.0% 22.0%
Adjusted operating
profit 6.5% 2.1% 12.1% 6.8% 27.5%
--------------------- --- ----------- ------------------- ------------------ ---------------- ----------------
2018
Revenue 3.7% (0.4%) 35.4% (3.8%) 34.9%
Adjusted operating
profit 2.3% (0.1%) 37.6% (5.4%) 34.4%
--------------------- --- ----------- ------------------- ------------------ ---------------- ----------------
Adjusting Items
The items below have been excluded from adjusted results. The
total charge against operating profit for adjusting items rose to
GBP395.0m in 2019 (2018: GBP368.9m), mainly due to the increase in
amortisation of acquired intangible assets following the UBM
combination.
2019 2018
GBPm GBPm
---------------------------------------------------------- ------- -------
Intangible amortisation and impairment:
Intangible asset amortisation1 312.4 243.6
Impairment of acquisition intangibles and goodwill 4.7 9.8
Impairment of right of use assets 4.6 -
Acquisition costs 3.3 42.9
Integration costs 56.4 46.0
Restructuring and reorganisation costs:
Redundancy and reorganisation costs 6.4 8.1
Vacant property costs 2.2 5.0
Re-measurement of contingent consideration 3.2 (0.1)
VAT charges 1.8 9.1
GMP pension equalisation - 4.5
Adjusting items in operating profit 395.0 368.9
Loss/(profit) on disposal of subsidiaries and operations 95.4 (1.1)
Investment income (1.2) (1.2)
Finance costs 13.5 1.0
Adjusting items in profit before tax 502.7 367.6
Tax related to adjusting items (83.5) (55.7)
Adjusting items in profit for the year 419.2 311.9
----------------------------------------------------------- ------- -------
1 Intangible asset amortisation is in respect of acquired
intangibles and excludes amortisation of software and product
development
The GBP68.8m increase in intangible asset amortisation in 2019
primarily reflects an additional five and half months of
amortisation of acquired intangibles relating to the UBM
acquisition, which totalled GBP60.5m.
Intangible amortisation relates to book lists and journal
titles, acquired databases, customer and attendee relationships and
brands related to exhibitions, events and conferences. Intangible
asset amortisation arising from software assets and product
development is not treated as an adjusting item and so is not
included in the table, as it is treated as an ordinary cost in the
calculation of operating profit.
Integration costs of GBP56.4m included GBP42.4m relating to
acquiring UBM, and consisted mainly of process, property and
colleague-related reorganisation costs. This brings the cumulative
UBM integration costs to GBP81.9m to date. The integration of other
acquisitions, including the IHS Markit TMT research and
intelligence portfolio, amounted to GBP14.0m.
Net finance costs of GBP12.3m largely relate to incremental
finance costs associated with the early repayment of borrowings in
2019, allowing us to take advantage of favourable market conditions
to secure long-term refinancing.
The loss on disposal of GBP95.4m included a GBP35.6m profit
relating to the disposal of the Agribusiness Intelligence portfolio
on 30 June 2019 and a GBP120.6m loss associated with selling the
Industry & Infrastructure media brands portfolio on 9 October
2019.
Informa's updated Divisional structure was launched at the start
of 2019 and included new divisional names and the launch of a fifth
operating Division, Informa Tech. All five operating Divisions
posted underlying revenue growth in 2019, with Group underlying
revenue growth of 3.5% and underlying profit growth of 6.5%, as
shown in the following table.
Informa
Informa Informa Informa Tech Intelligence Taylor & Group
Markets GBPm Connect GBPm GBPm GBPm Francis GBPm GBPm
----------------- ------------- -------------- -------------- ------------- ------------- --------------
Revenue 1,450.2 275.6 256.2 348.7 559.6 2,890.3
Underlying
revenue growth 4.3% 2.9% 2.0% 3.3% 2.4% 3.5%
Statutory
operating
profit 247.1 22.8 35.9 68.8 163.5 538.1
Add back:
Intangible asset
amortisation(1) 197.5 17.9 21.7 23.3 52.0 312.4
Impairment of
acquisition
intangibles and
goodwill 4.7 - - - - 4.7
Impairment right
of use assets 1.4 - - 0.9 2.3 4.6
Acquisition
costs 0.7 - 2.0 0.3 0.3 3.3
Integration
costs 38.6 4.6 10.2 3.0 - 56.4
Restructuring
and
reorganisation
costs 3.0 0.2 0.6 4.8 - 8.6
Re-measurement
of contingent
consideration (1.5) 1.7 - 3.0 - 3.2
VAT charges 1.8 - - - - 1.8
Adjusted
operating
profit 493.3 47.2 70.4 104.1 218.1 933.1
Underlying
adjusted
operating
profit growth 7.5% (1.5%) 7.1% 11.3% 3.6% 6.5%
----------------- ------------- -------------- -------------- ------------- ------------- --------------
1 Intangible asset amortisation is in respect of acquired
intangibles, and excludes amortisation of software and product
development
Adjusted Net Finance Costs
Adjusted net finance costs, principally consisting of interest
costs on US private placement loan notes, bond and bank borrowings,
increased by GBP29.3m to GBP111.7m. The increase principally
reflected the full year effect of higher average debt levels
following the addition of UBM. This increased net debt by
GBP1,211.9m, reflecting the cash consideration of GBP643.5m and
GBP568.4m of net debt acquired with the business.
In addition, GBP3.1m of increased financing related to adverse
currency movements, with the remainder largely related to IFRS 16
net finance costs of GBP13.5m.
This reflects the inclusion in net debt of leases following the
adoption of IFRS 16 Leases on 1 January 2019 (GBP329.2m net IFRS 16
finance lease debt added on 1 January 2019). The reconciliation of
adjusted net finance costs to the statutory finance costs and
investment income is as follows:
2019 2018
GBPm GBPm
--------------------------------------------------------- ------- ------
Investment income (10.1) (8.2)
Finance costs 134.1 90.4
Add back: Adjusting items relating to investment income 1.2 1.2
Add back: Adjusting items relating to finance costs (13.5) (1.0)
---------------------------------------------------------- ------- ------
Adjusted net finance costs 111.7 82.4
---------------------------------------------------------- ------- ------
Taxation
Approach to tax
The Group continues to recognise that taxes paid are part of the
economic benefit created for the societies in which we operate, and
that a fair and effective tax system is in the interests of
tax-payers and society at large. We aim to comply with tax laws and
regulations everywhere the Group does business. Informa has open
and constructive working relationships with tax authorities
worldwide and our approach balances the interests of stakeholders
including shareholders, governments, colleagues and the communities
in which we operate.
The Group's effective tax rate reflects the blend of tax rates
and profits in the jurisdictions in which we operate. In 2019, the
effective tax rate was 19.0% (2018: 17.9%).
The calculation of the effective tax rate is as follows.
2019 2018
GBPm GBPm
---------------------------- ------ ------
Adjusted tax charge 156.1 116.2
Adjusted profit before tax 821.4 649.7
Effective tax rate % 19.0% 17.9%
---------------------------- ------ ------
Tax payments
During 2019, the Group paid GBP100.6m (2018: GBP82.4m) of
corporation and similar taxes on profits, with the increase largely
reflecting the full year of tax payments relating to UBM.
A breakdown of the main geographies in which the Group paid tax
is as follows:
2019 2018
GBPm GBPm
UK 25.8 39.9
Continental Europe 10.7 7.7
United States 19.9 1.7
China 21.8 25.2
Rest of world 22.4 7.9
Total 100.6 82.4
-------------------- ------ ------
The reconciliation of the adjusted tax charge to cash taxes paid
is as follows:
2019 2018
GBPm GBPm
-------------------------------------------------------------- ------- -------
Tax charge on adjusted PBT per Consolidated Income Statement 156.1 116.2
Movement in deferred tax including US tax losses (27.1) (5.3)
Net current tax credits in respect of adjusting items (20.1) (29.4)
Movement in provisions for uncertain tax positions 4.3 5.6
Taxes paid in different year to charged (12.6) (4.7)
Taxes paid per Statutory Cash Flow 100.6 82.4
-------------------------------------------------------------- ------- -------
At the end of 2019, the deferred tax asset relating to US tax
losses was GBP69.2m (2018: GBP106.0m), which is expected to be
utilised against future US profits.
Goodwill is not amortised, and as a result, there is no charge
to adjusting items for goodwill amortisation. However, there can be
an allowable tax benefit for certain goodwill amortisation in the
US and elsewhere. Where this benefit arises, it reduces the tax
charge on adjusted profits.
The amortisation of intangible assets is considered an adjusting
item. Therefore, the GBP14.4m (2018: GBP16.7m) of current tax
credits taken in respect of the amortisation of intangible assets
is also treated as an adjusting item and is included in the current
tax credits in respect of adjusting items noted above.
Tax contribution
The Group's total tax contribution, which comprises all material
taxes paid to, and collected on behalf of, governments globally was
GBP375.2m in 2019 (2018: GBP316.9m). The geographical split of
taxes paid by our businesses was as follows:
UK US Other Total
GBPm GBPm GBPm GBPm
----------------------------------- ------ ------ ------- ------
Profit taxes borne 25.8 19.9 54.9 100.6
Employment taxes borne 23.4 20.8 10.6 54.8
Other taxes (e.g. business rates) 6.7 1.4 1.8 9.9
Total tax contribution 55.9 42.1 67.3 165.3
----------------------------------- ------ ------ ------- ------
In addition to the above, in 2019 we collected taxes on behalf
of governments (e.g. employee taxes and sales taxes) amounting to
GBP209.9m (2018: GBP177.8m).
Earnings Per Share
Informa delivered an increase in adjusted earnings per share
(EPS) of 4.3% to 51.3p (2018: 49.2p). This reflects a 24.0%
increase in adjusted earnings to GBP644.7m (2018: GBP519.8m), more
than offsetting the 18.8% increase in the weighted average number
of shares.
Reconciliation of Adjusted profit after tax and adjusted diluted
earnings per share is as follows:
2019 2018
GBPm GBPm
----------------------------------------------------------- -------- --------
Statutory Profit for the year 246.1 221.6
Add back: Adjusting items in profit for the year 419.2 311.9
------------------------------------------------------------ -------- --------
Adjusted profit for the year 665.3 533.5
Non-controlling interests (20.6) (13.7)
------------------------------------------------------------ -------- --------
Adjusted earnings 644.7 519.8
Weighted average number of shares used in diluted EPS (m) 1,255.7 1,057.2
------------------------------------------------------------ -------- --------
Adjusted diluted EPS (p) 51.3p 49.2p
------------------------------------------------------------ -------- --------
Statutory Profit for the year 246.1 221.6
Non-controlling interests (20.6) (13.7)
------------------------------------------------------------ -------- --------
Statutory Earnings 225.5 207.9
Weighted average number of shares used in diluted EPS (m) 1,255.7 1,057.2
------------------------------------------------------------ -------- --------
Statutory Diluted EPS (p) 18.0p 19.7p
------------------------------------------------------------ -------- --------
If we were to reflect a full 12 months ownership of UBM, related
finance costs and share issuance, and remove the impact of owning
the Life Sciences media brands portfolio which was sold in January
2019, pro-forma adjusted diluted EPS grew by 16.1% from 2018 (51.3p
in 2019 compared to 2018 pro-forma amount of 44.2p, see table
below). See the glossary of terms for a full definition of
pro-forma diluted EPS measures.
2019 2018 Pro-forma
GBPm
GBPm
------------------------------------------------------------ --- -------- ---------------
Adjusted profit for the year 665.3 533.5
Adjustment to 2018 profit (UBM & Life Sciences) - 40.5
Non-controlling interests (20.6) (13.7)
Non-controlling interest adjustment (UBM & Life Sciences) - (4.8)
------------------------------------------------------------ --- -------- ---------------
Adjusted earnings 644.7 555.5
Weighted average number of shares used in diluted EPS (m) 1,255.7 1,057.2
Weighted average number of shares adjustment - 198.9
------------------------------------------------------------ --- -------- ---------------
Adjusted diluted EPS (p) 51.3p 44.2p
----------------------------------------------------------------- -------- ---------------
Dividends
The Group's strong cash conversion and free cash flow generation
supported further growth in dividends in 2019. The Board has
proposed a final dividend of 15.95p per share (2018: 14.85p per
share) representing a 7.4% increase on the final dividend in the
prior year.
The final dividend is scheduled to be paid on 10 July 2020 to
ordinary shareholders registered at the close of business on 19
June 2020. This will result in total dividends for the year of
23.5p (2018: 21.9p), a 7.3% year-in-year increase.
The growth in earnings in 2019 means dividend cover (see
glossary of terms for definition) was 2.2 times (2018 2.2 times),
being adjusted diluted EPS of 51.3p (2018: 49.2p) divided by total
dividends per share of 23.5p (2018: 21.90p). Our dividend payout
ratio was 45.8%, being total dividends per share of 23.5p divided
by adjusted EPS of 51.3p.
2019 2018
------------------------------------------------------------------- ------ ------
Adjusted diluted EPS (p) 51.3 49.2
Dividends per share (p) 23.5 21.9
-------------------------------------------------------------------- ------ ------
Dividend cover 2.2 2.2
-------------------------------------------------------------------- ------ ------
Dividend payout ratio (dividends per share/ adjusted diluted EPS) 45.8% 44.5%
-------------------------------------------------------------------- ------ ------
In 2019 GBP280.0m (2018: GBP201.9m) of dividends were paid to
external shareholders and GBP17.5m (2018: GBP8.6m) in dividends
were paid to non-controlling interests.
Currency Impact
One of the Group's strengths is its international reach and
balance, with businesses in most major regions. This means the
Group generates revenues and costs in a mixture of currencies, with
particular exposure to the US Dollar and some exposure to the Euro
and the Chinese Renminbi.
In 2019, approximately 59% (2018: 61%) of Group revenue was
received in USD or currencies pegged to USD, with 7% (2018: 6%)
received in Euro and around 8% (2018: 7%) in Chinese Renminbi.
Similarly, we incurred approximately 53% (2018: 53%) of our
costs in USD or currencies pegged to USD, with 3% (2018: 2%) in
Euro and around 7% (2018: 6%) in Chinese Renminbi.
Each one cent ($0.01) movement in the USD to GBP exchange rate
has a circa GBP13m (2018: GBP11m) impact on annual revenue, and a
circa GBP5m (2018: cGBP4m) impact on annual adjusted operating
profit.
For the purposes of testing Informa's leverage in accordance
with the Group's bank covenants, both profit and net debt are
translated using the average exchange rate during the relevant
period.
The following rates versus GBP were applied during the
period:
2019 2018
----------- ---- ------------------ ------------------
Closing Average Closing Average
rate rate Rate rate
----------- --- -------- -------- -------- --------
US Dollar 1.32 1.28 1.27 1.33
Euro 1.17 1.14 1.11 1.13
Renminbi 9.17 8.80 8.73 8.82
----------------- -------- -------- -------- --------
Free Cash Flow
Cash generation remains a key priority and focus for the Group,
providing the funds and flexibility for paying down debt, future
organic and inorganic investment, and consistent shareholder
returns. Our businesses typically convert adjusted operating profit
into cash at an attractive rate, reflecting the relatively low
capital intensity of the Group.
The following table reconciles statutory operating profit to
free cash flow. See glossary of terms for the definition of free
cash flow.
2019 2018
GBPm GBPm
------------------------------------------------------- -------- -------
Statutory operating profit 538.1 363.2
Adjusting items 395.0 368.9
------------------------------------------------------- -------- -------
Adjusted operating profit 933.1 732.1
Depreciation of property and equipment 17.2 13.1
Depreciation of right of use assets(1) 33.1 -
Software and product development amortisation 41.9 42.5
Share-based payments 10.4 8.1
Pension curtailment gain - (0.8)
Adjusted share of joint venture and associate results (1.5) (1.0)
Adjusted EBITDA 2 1,034.2 794.0
Net capital expenditure (49.8) (59.4)
Working capital movement (3) (13.6) (62.3)
Pension deficit contributions (5.4) (4.4)
------------------------------------------------------- -------- -------
Operating Cash Flow 965.4 667.9
Restructuring and reorganisation (9.9) (18.1)
Net interest (4) (132.8) (64.2)
Taxation (100.6) (82.4)
------------------------------------------------------- -------- -------
Free Cash Flow 722.1 503.2
------------------------------------------------------- -------- -------
(1) Right of use assets arise on the adoption of IFRS16 leases
from 1 January 2019.
(2) Adjusted EBITDA represents adjusted operating profit before
interest, tax, and non-cash items including depreciation and
amortisation
(3) Working capital movement excludes movements on
restructuring, reorganisation, acquisition and integration
accruals
(4) Amount includes GBP13.5m of m ake-whole interest related to
the early refinancing of bond and private placement debt
Our focus on cash generation led to a consistently strong
operating cash conversion in 2019 of 103.5% (2018: 91.2%).
The calculation of operating and free cash flow conversion is as
follows:
Operating Cash Flow Free cash flow
2019 2018 2019 2018
GBPm GBPm GBPm GBPm
-------------------------------------------- ----------- --------- -------- -------
Operating Cash Flow/ Free cash flow 965.4 667.9 722.1 503.2
Adjusted operating profit 933.1 732.1 933.1 732.1
Operating cash / Free cash flow conversion 103.5% 91.2% 77.4% 68.7%
--------------------------------------------- ----------- --------- -------- -------
Net capital expenditure was GBP49.8m (2018: GBP59.4m),
equivalent to 1.7% of 2019 revenue (2018 2.5%). We expect full year
2020 capital expenditure to be around 3% of revenue.
The working capital outflow of GBP13.6m was a GBP48.7m
improvement on the GBP62.3m outflow in 2018. The smaller outflow in
2019 reflects a more normal performance after the prior year was
impacted by the timing of the combination with UBM part-way through
2018.
Net cash interest payments were GBP132.8m, this was a GBP68.6m
increase on the prior year, largely reflecting the full year effect
of the additional debt to acquire UBM.
The following table reconciles net cash inflow from operating
activities, as shown in the consolidated cash flow statement to
free cash flow:
2019 2018
GBPm GBPm
------------------------------------------------------------------- ------- -------
Net cash inflow from operating activities per statutory cash flow 719.6 486.3
Interest received 5.5 2.1
Purchase of property and equipment (17.5) (23.4)
Proceeds on disposal of property and equipment - 0.4
Purchase of intangible software assets (25.3) (30.2)
Product development cost additions (7.0) (6.2)
Add back: Acquisition and integration costs paid 46.8 74.2
Free Cash Flow 722.1 503.2
-------------------------------------------------------------------- ------- -------
Net cash inflow from operating activities increased by GBP233.3m
to GBP719.6m, principally driven by the growth in adjusted
operating profit.
The following table reconciles cash generated by operations, as
shown in the consolidated cash flow statement, to operating cash
flow shown in the free cash flow table above:
2019 2018
GBPm GBPm
------------------------------------------------------ ------- -------
Cash generated by operations per statutory cash flow 958.5 635.0
Net Capex paid (49.8) (59.4)
Add back: Acquisition & integration costs paid 46.8 74.2
Add back: Restructuring & re-organisation costs paid 9.9 18.1
Operating Cash Flow per Free Cash flow statement 965.4 667.9
------------------------------------------------------- ------- -------
The following table reconciles free cash flow to net funds flow
and net debt, with net debt reducing by GBP24.3m to GBP2,657.6m
during the year. Net debt increased by GBP329.2m due to the
introduction of IFRS 16, partly offset by favourable movement in
the USD to GBP exchange rates. As the majority of our net debt is
US dollar-denominated or swapped into USD (86.5% of net debt), the
weakening of the USD against GBP reduced our net debt by
GBP87.4m.
2019 2018
GBPm GBPm
---------------------------------------------------- ---------- ----------
Free Cash Flow 722.1 503.2
Acquisitions (311.1) (697.8)
Disposals 179.3 7.4
Dividends paid to shareholders (280.0) (201.9)
Dividend paid to settle UBM acquisition liability - (59.0)
Dividends paid to non-controlling interests (17.5) (8.6)
Net share (purchase)/proceeds (15.9) 2.0
----------------------------------------------------- ---------- ----------
Net funds flow 276.9 (454.7)
Borrowings acquired with acquisition of UBM - (702.6)
Non-cash movements 5.7 (0.6)
Foreign exchange 87.4 (150.9)
Net debt b/f (2,681.9) (1,373.1)
Net finance lease additions in the year (16.5) -
IFRS 16 leases at 1 January 2019 (343.6) -
IFRS 16 finance lease receivable at 1 January 2019 14.4 -
Net debt (2,657.6) (2,681.9)
----------------------------------------------------- ---------- ----------
Financing and Leverage
The Group's consistent growth, high levels of cash conversion
and strong free cash generation provide significant flexibility for
investment, expansion and returns. This underpins our strong and
flexible balance sheet, helping us to meet our leverage target for
2019, with net debt to EBITDA ending the year at 2.5 times. This
equated to net debt of GBP2.7bn or GBP2.4bn on a pre-IFRS 16 basis
at 31 December 2019 (2018: GBP2.7bn), with our robust and flexible
financing framework providing unutilised committed financing
facilities of GBP843.1m (2018: GBP776.5m).
On 15 February 2019, the Group negotiated a new revolving credit
facility (RCF) with two tranches: GBP600m for a five-year term to
February 2024 and GBP300m for a three-year term to February 2022.
On 24 January 2020 both tranches of RCF were extended by one
further year, to February 2025 and February 2023 respectively.
On 22 October 2019 the Group took advantage of favourable
financing market conditions to issue EUR500.0m of new EMTN loan
notes, with maturities of 8 years and 6 months (maturing on 22
April 2028). These loan notes were swapped into USD and used to
prepay bond and private placement debt that was due to mature in
2020. In November 2019 we repaid the $350m bond due to mature in
November 2020 and in December 2020, we also repaid $185m of private
placement debt due to mature in December 2020. On 24 February 2020
we made an early repayment to the holders of the remaining $200.5m
private placement debt maturing in December 2020.
In addition, in 2020, we secured a surplus, committed credit
facility of GBP750m which will provide full flexibility through the
current period of market volatility.
Following the pro-active management of our financing structure,
the Group's average maturity on our drawn borrowings is currently
5.6 years (5.5 years as at 31 December 2019), with no borrowing
maturities until June 2022.
31 December 31 December
2019 2018
GBPm GBPm
----------------------------------------------------------------- ------------ ------------
Cash and cash equivalents (195.1) (168.8)
Bank overdraft - 43.9
Private placement loan notes 1,212.8 1,396.4
Private placement fees (2.7) (3.4)
Bond borrowings 1,279.1 1,163.0
Bond borrowing fees (11.0) (7.4)
Bank borrowings - revolving credit facility (RCF) 56.9 78.5
Bank borrowings - term loan facility - 156.9
Bank loan fees (2.2) (0.9)
Derivative assets associated with borrowings (3.9) (1.5)
Derivative liabilities associated with borrowings 22.4 25.2
------------------------------------------------------------------ ------------ ------------
Net debt before leases 2,356.3 2,681.9
Finance lease liabilities 316.6 -
Finance lease receivables (15.3) -
Net debt 2,657.6 2,681.9
------------------------------------------------------------------ ------------ ------------
Borrowings (excluding derivati v es, leases, fees & overdrafts) 2,548.8 2,794.8
Unutilised committed facilities (undrawn portion of RCF) 843.1 776.5
------------------------------------------------------------------ ------------ ------------
Total committed facilities 3,391.9 3,571.3
------------------------------------------------------------------ ------------ ------------
There are no financial covenants on our debt facilities other
than for our US private placement loan notes in issue at 31
December 2019, where the principal financial covenants are a
maximum leverage ratio of 3.5 times and a minimum interest cover of
4.0 times, tested semi-annually .
At 31 December 2019, the leverage ratio was 2.5 times (31
December 2018: 2.9 times), calculated in accordance with our note
purchase agreements, with net debt on a pre-IFRS 16 basis and using
average exchange rates to translate net debt and including a full
year's trading for acquisitions completed during 2019. The interest
cover ratio was 9.4 times (31 December 2018: 9.5 times). See
glossary of terms for the definition of leverage ratio and interest
cover.
The calculation of the leverage ratio is as follows:
2019 2018
GBPm GBPm
-------------------------------------------------------- -------- --------
Net debt as reported (post IFRS 16) 2,657.6 2,681.9
Adjusted EBITDA 1,034.2 794.0
Leverage ratio reported value 2.6 3.4
Leverage ratio covenant EBITDA adjustment to ratio 1 0.2 (0.3)
Adjustment to ratio for net debt covenant adjustment 1 (0.3) (0.2)
---------------------------------------------------------- -------- --------
Leverage ratio per debt covenants 2.5 2.9
---------------------------------------------------------- -------- --------
1 Refer to Glossary for details of the nature of debt covenant
adjustments to EBITDA and Net Debt for leverage ratio
The calculation of the interest cover is as follows:
2019 2018
GBPm GBPm
------------------------------------------------------ -------- ------
Adjusted EBITDA 1,034.2 794.0
Adjusted net finance costs 111.7 82.4
-------------------------------------------------------- -------- ------
Interest cover reported value 9.3 9.6
Interest cover covenant EBITDA adjustment to ratio 1 0.1 (0.1)
-------------------------------------------------------- -------- ------
Interest cover per debt covenant 9.4 9.5
-------------------------------------------------------- -------- ------
1 Refer to Glossary for details of the nature of debt covenant
adjustments to EBITDA for interest cover
Corporate Development
Informa has a proven track record in creating value through
identifying, executing and integrating complementary businesses
effectively into the Group, and we continue to target attractive
businesses in specialist markets. In 2019, cash invested in
acquisitions was GBP311.1m (2018: GBP697.8m), with GBP232.1m
relating to acquisitions (2018: GBP623.6m), GBP46.8m (2018:
GBP74.2m) relating to acquisition and integration costs and
GBP32.2m relating to the cash settlement on the exercise of an
option relating to minority interests in certain Fashion shows in
the US. Net proceeds from disposals amounted to GBP179.3m (2018:
GBP7.4m).
Acquisitions
On 4 January 2019 the Group acquired the Centre for Asia Pacific
Aviation Pty Ltd (CAPA), for cash consideration of GBP15.0m (AUD
24.8m), net of cash acquired. The business forms part of the
specialist Aviation portfolio in Informa Markets.
On 1 August 2019 the Group acquired the TMT Research and
Intelligence Portfolio from IHS Markit for GBP123.3m consideration.
This business forms part of Informa Tech and its newly launched
Omdia business.
Disposals
Through the Progressive Portfolio Management programme within
the AIP, the Group made several divestitures during 2019, leaving
us more focused on specialist markets with the strongest future
growth prospects for our brands.
This included the sale of the Life Sciences Media Brands
Portfolio, completed on 31 January 2019, for a consideration of
GBP79.3m, with GBP67.3m received in cash and GBP12.0m of deferred
consideration. The profit on disposal was GBP10.8m.
On 30 June 2019 we completed the sale of the Agribusiness
Intelligence Portfolio within Informa Intelligence to IHS Markit,
for cash consideration of GBP102.8m. This completed on 30 June
2019, with a profit on disposal of GBP35.6m.
On 9 October 2019 the Group completed the divestiture of a
portfolio of Industry & Infrastructure Media Brands for a
consideration of GBP42.4m, recording a loss on disposal of
GBP120.6m.
On 15 November 2019 the Group sold a small portfolio of non-core
US event brands, which were part of Informa Markets. The
consideration was GBP6.6m, and the loss on disposal was
GBP13.3m.
Pensions
The Group continues to meet all commitments to its pension
schemes, which consist of six defined benefit schemes. At 31
December 2019, the Group had a net pension liability of GBP30.1m
(31 December 2018: GBP33.0m), represented by a pension deficit of
GBP35.0m (31 December 2018: GBP37.5m) and a pension surplus of
GBP4.9m (31 December 2018: GBP4.5m). Gross liabilities were
GBP730.8m at 31 December 2019 (31 December 2018: GBP679.2m).
The net deficit remains manageable and relatively small compared
to the size of the Group's balance sheet. All schemes are closed to
future accrual and the Group expects to make GBP4.9m of employer
deficit recovery payments during 2020.
Restatement of 2018 results
The segmental income statement for the year ended 31 December
2018 has been reclassified to align with the updated divisional
structure effective from 1 January 2019.
In 2019 we completed the IFRS 3 fair value exercise in relation
to the 15 June 2018 acquisition of UBM plc.
New accounting standards
The only material financial impact from new accounting standards
in 2019 is from the adoption of IFRS 16 Leases on 1 January
2019.
IFRS 16 Leases, replaces the existing leasing standard, IAS 17
Leases. It treats all leases in a consistent way, eliminating the
distinction between operating and finance leases, and has required
lessees to recognise all leases on the balance sheet, except for
low value leases and those with a term of less than 12 months. The
most significant effect of the new standard has been the
recognition in the Balance Sheet of right of use assets and lease
liabilities for leases previously categorised as operating
leases.
The new standard also changes the nature of expenses related to
those leases, replacing the straight-line operating lease expense
with a depreciation charge for the right of use lease asset
(included within operating costs) and an interest expense on the
lease liability (included within finance costs).
There are several practical expedients and exemptions available
on the adoption of IFRS 16. The Group has elected to apply the
modified retrospective method of implementation where there is no
restatement of the comparative period and using the practical
expedient where, at the adoption date, right-of-use lease assets
are set to equal the lease liabilities. The Group has excluded
leases of low-value assets and short-term leases, with a duration
of less than 12 months from the application of IFRS 16, with
payments for these leases continuing to be expensed directly to the
Income Statement as operating leases. The major classes of leases
impacted by the new standard are property and event space
leases.
At 1 January 2019 the adoption of IFRS 16 resulted in the Group
recognising right-of-use assets of GBP295.3m, finance lease
receivables of GBP14.4m and lease liabilities of GBP343.6m. There
is also a reduction of GBP2.7m for prepaid rental amounts which are
netted against the right-of-use assets, a reduction of GBP41.7m to
liabilities for property provisions and deferred rent-free amounts
netted against the right of use assets, and an increase in deferred
tax liabilities of GBP1.0m.
The impact of IFRS 16 for the year ended 31 December 2019
increases adjusted operating profit by GBP6.5m, reflecting the
removal of IAS 17 operating lease expenses of GBP39.6m and
replacing this with IFRS 16 depreciation of GBP33.1m. Adjusted
profit before tax decreases by GBP7.0m, reflecting the adjusted
operating profit change together with the IFRS 16 net finance
expense of GBP13.5m (GBP14.3m finance costs and GBP0.8m investment
income), and the adjusted tax impact of the change of GBP1.3m,
resulting in adjusted profit after tax decreasing by GBP5.7m and a
decrease to 2019 adjusted diluted earnings per share of 0.45p.
The impact on 2019 statutory profit before tax was a decrease of
GBP11.6m reflecting the GBP7.0m adjusted profit before tax decrease
and the impairment of right of use assets of GBP4.6m.
In the Consolidated Cash Flow Statement there is no impact on
the total change in cash and cash equivalents. Under IFRS 16 the
repayment of lease liabilities is included in financing activities
and interest on IFRS 16 leases is shown in operating activities,
whereas under IAS 17 lease rental payments were in operating
activities. The impact of IFRS 16 on the 2019 Consolidated Cash
Flow Statement increases the cash inflow from operations by
GBP39.6m and increases net interest paid by GBP13.5m.
Consolidated Income Statement
For the year ended 31 December 2019
Adjusted Adjusting Statutory Adjusted Adjusting Statutory
----------------------------------------------
results items results results items results
2019 2019 2019 2018 2018 2018
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Revenue 2,890.3 - 2,890.3 2,369.5 - 2,369.5
Net operating expenses (1,958.7) (395.0) (2,353.7) (1,638.4) (368.9) (2,007.3)
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Operating profit/(loss) before joint ventures
and associates 931.6 (395.0) 536.6 731.1 (368.9) 362.2
Share of results of joint ventures and
associates 1.5 - 1.5 1.0 - 1.0
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Operating profit/(loss) 933.1 (395.0) 538.1 732.1 (368.9) 363.2
(Loss)/profit on disposal of subsidiaries and
operations - (95.4) (95.4) - 1.1 1.1
Investment income 8.9 1.2 10.1 7.0 1.2 8.2
Finance costs (120.6) (13.5) (134.1) (89.4) (1.0) (90.4)
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) before tax 821.4 (502.7) 318.7 649.7 (367.6) 282.1
Tax (charge)/credit (156.1) 83.5 (72.6) (116.2) 55.7 (60.5)
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Profit/(loss) for the year 665.3 (419.2) 246.1 533.5 (311.9) 221.6
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Attributable to:
- Equity holders of the Company 644.7 (419.2) 225.5 519.8 (311.9) 207.9
- Non-controlling interests 20.6 - 20.6 13.7 - 13.7
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Earnings per share
- Basic (p) 51.5 18.0 49.4 19.7
- Diluted (p) 51.3 18.0 49.2 19.7
---------------------------------------------- ---------- ---------- ---------- ---------- ---------- ----------
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2019
2019 2018 (restated) (1)
--------------------------------------------------------------------------------------
GBPm GBPm
-------------------------------------------------------------------------------------- -------- --------------------
Profit for the year 246.1 221.6
Items that will not be reclassified subsequently to profit or loss:
Actuarial loss on defined benefit pension schemes (1.6) (14.3)
Tax credit relating to items that will not be reclassified to profit or loss 0.7 1.3
-------------------------------------------------------------------------------------- -------- --------------------
Total items that will not be reclassified subsequently to profit or loss (0.9) (13.0)
Items that will be reclassified subsequently to profit or loss:
Recycling of exchange gains arising on disposal of foreign operations 1.2 -
Items that may be reclassified subsequently to profit or loss:
Exchange (loss)/gain on translation of foreign operations (1) (233.5) 236.0
Exchange gain/(loss) on net investment hedge debt 73.1 (91.3)
Loss on derivative hedges (21.2) (22.4)
Total items that may be reclassified subsequently to profit or loss (180.4) 122.3
Other comprehensive (expense) income for the year (181.3) 109.3
-------------------------------------------------------------------------------------- -------- --------------------
Total comprehensive income for the year before initial application of IFRS 16 64.8 330.9
Effect of initial application of IFRS 16 that will not be reclassified subsequently
to profit
or loss 4.1 -
-------------------------------------------------------------------------------------- -------- --------------------
Total comprehensive income for the year including IFRS 16 initial application 68.9 330.9
-------------------------------------------------------------------------------------- -------- --------------------
Total comprehensive income attributable to:
- Equity holders of the Company 48.2 314.7
- Non-controlling interests 20.7 16.2
-------------------------------------------------------------------------------------- -------- --------------------
(1) 2018 restated for finalisation of UBM acquisition accounting
(see Note 3)
Consolidated Statement of Changes in Equity
For the year ended 31 December 2019
Share Retained Total
Share premium Translation Other earnings Non-controlling equity
capital account reserve (1) reserves (1) Total (1) interests (1)
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
At 31 December
2017 0.8 905.3 (56.5) (1,568.7) 2,936.8 2,217.7 11.3 2,229.0
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
Profit for the
year - - - - 207.9 207.9 13.7 221.6
Exchange gain on
translation of
foreign
operations (1) - - 233.5 - - 233.5 2.5 236.0
Exchange loss on
net investment
hedge debt - - (91.3) - - (91.3) - (91.3)
Loss arising on
derivative
hedges - - (22.4) - - (22.4) - (22.4)
Actuarial loss
on defined
benefit pension
schemes - - - - (14.3) (14.3) - (14.3)
Tax relating to
components of
other
comprehensive
income - - - - 1.3 1.3 - 1.3
Total
comprehensive
income for the
year - - 119.8 - 194.9 314.7 16.2 330.9
Dividends to
Shareholders - - - - (201.8) (201.8) - (201.8)
Dividends to
non-controlling
interests - - - - - - (8.6) (8.6)
Share award
expense - - - 8.1 - 8.1 - 8.1
Issue of share
capital 0.5 - - 3,546.8 - 3,547.3 - 3,547.3
Own shares
purchased - - - (3.5) - (3.5) - (3.5)
Transfer of
vested LTIPs - - - (3.9) 3.9 - - -
NCI arising from
purchase of
subsidiary - - - - - - 176.8 176.8
Adjustment to
NCI arising
from exercise
of put option - - - (4.3) - (4.3) (2.3) (6.6)
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
At 31 December
2018 (1) 1.3 905.3 63.3 1,974.5 2,933.8 5,878.2 193.4 6,071.6
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
Effect of
initial
application of
IFRS 16 on 1
January 2019 - - - - 4.1 4.1 - 4.1
At 1 January
2019 as
restated for
initial
application of
IFRS 16 1.3 905.3 63.3 1,974.5 2,937.9 5,882.3 193.4 6,075.7
Profit for the
year - - - 225.5 225.5 20.6 246.1
Exchange loss on
translation of
foreign
operations - - (233.6) - - (233.6) 0.1 (233.5)
Exchange gain on
net investment
hedge debt - - 73.1 - - 73.1 - 73.1
Loss arising on
derivative
hedges - - (21.2) - - (21.2) - (21.2)
FX recycling of
disposed
entities - - 1.2 - - 1.2 - 1.2
Actuarial loss
on defined
benefit pension
schemes - - - - (1.6) (1.6) - (1.6)
Tax relating to
components of
other
comprehensive
income - - - - 0.7 0.7 - 0.7
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
Total
comprehensive
income for the
year - - (180.5) - 224.6 44.1 20.7 64.8
Dividends to
Shareholders - - - - (280.3) (280.3) - (280.3)
Dividends to
non-controlling
interests - - - - - - (17.5) (17.5)
Share award
expense - - - 10.4 - 10.4 - 10.4
Own shares
purchased - - (15.9) - (15.9) - (15.9)
Transfer of
vested LTIPs - - - (5.7) 5.7 - - -
NCI arising from
purchase of
subsidiary - - - - - - - -
Disposal of NCI - - - 1.3 - 1.3 (0.5) 0.8
At 31 December
2019 1.3 905.3 (117.2) 1,964.6 2,887.9 5,641.9 196.1 5,838.0
----------------- --------- --------- ------------ ---------- --------- ---------- ----------------- ---------
(1) 2018 restated for finalisation of UBM acquisition accounting
(see Note 3)
Consolidated Balance Sheet
As at 31 December 2019
2019 2018 (restated) (1)
-------------------------------------------------------------------------
GBPm GBPm
------------------------------------------------------------------------- -------------- --------------------
Goodwill 6,143.1 6,343.9
Other intangible assets 3,437.4 3,854.4
Property and equipment 69.2 69.7
Right of use assets 264.4 -
Investments in joint ventures and associates 19.8 19.1
Other investments 10.1 5.1
Deferred tax assets 6.7 24.2
Retirement benefit surplus 4.9 4.5
Finance lease receivables 13.0 -
Other receivables 27.8 6.3
Derivative financial instruments 3.9 1.5
-------------------------------------------------------------------------- -------------- --------------------
Non-current assets 10,000.3 10,328.7
-------------------------------------------------------------------------- -------------- --------------------
Inventory 38.5 50.9
Trade and other receivables 476.4 400.4
Current tax asset 8.9 15.9
Cash and cash equivalents 195.1 168.8
Finance lease receivable 2.3 -
Derivative financial instruments 1.0
Assets classified as held for sale - 79.1
-------------------------------------------------------------------------- -------------- --------------------
Current assets 722.2 715.1
-------------------------------------------------------------------------- -------------- --------------------
Total assets 10,722.5 11,043.8
-------------------------------------------------------------------------- -------------- --------------------
Borrowings (152.2) (200.8)
Lease liabilities (34.2) -
Derivative financial instruments (36.4) (10.1)
Current tax liabilities (97.5) (96.2)
Provisions (34.3) (63.4)
Trade and other payables (482.7) (445.2)
Deferred income (746.5) (701.2)
Liabilities directly associated with assets classified as held for sale - (13.9)
-------------------------------------------------------------------------- ---------- --------------------
Current liabilities (1,583.8) (1,530.8)
-------------------------------------------------------------------------- ---------- --------------------
Borrowings (2,380.7) (2,626.2)
Lease liabilities (282.4) -
Derivative financial instruments (22.4) (94.0)
Deferred tax liabilities (540.4) (619.7)
Retirement benefit obligation (35.0) (37.5)
Provisions (19.1) (30.1)
Trade and other payables (17.4) (30.3)
Deferred income (3.3) (3.6)
-------------------------------------------------------------------------- ---------- --------------------
Non-current liabilities (3,300.7) (3,441.4)
-------------------------------------------------------------------------- ---------- --------------------
Total liabilities (4,884.5) (4,972.2)
-------------------------------------------------------------------------- ---------- --------------------
Net assets 5,838.0 6,071.6
Share capital 1.3 1.3
Share premium account 905.3 905.3
Translation reserve (117.2) 63.3
Other reserves 1,964.6 1,974.5
Retained earnings 2,887.9 2,933.8
-------------------------------------------------------------------------- ---------- --------------------
Equity attributable to equity holders of the parent 5,641.9 5,878.2
Non-controlling interest 196.1 193.4
-------------------------------------------------------------------------- ---------- --------------------
Total equity 5,838.0 6,071.6
-------------------------------------------------------------------------- ---------- --------------------
(1) 2018 restated for finalisation of UBM acquisition accounting
and held for sale reclassifications (see Note 3)
These financial statements were approved by the Board of
Directors and authorised for issue on 9 March 2020 and were signed
on its behalf by
Stephen A. Carter CBE Gareth Wright
Group Chief Executive Group Finance Director
Consolidated Cash Flow Statement
2019 2018
Year Ended 31 December 2019 GBPm GBPm
------------------------------------------------------------------------------ -------- ----------
Operating activities
Cash generated by operations 958.5 635.0
Income taxes paid (100.6) (82.4)
Interest paid (138.3) (66.3)
------------------------------------------------------------------------------- -------- ----------
Net cash inflow from operating activities 719.6 486.3
------------------------------------------------------------------------------- -------- ----------
Investing activities
Interest received 5.5 2.1
Purchase of property and equipment (17.5) (23.4)
Proceeds on disposal of property and equipment - 0.4
Purchase of intangible software assets (25.3) (30.2)
Product development costs additions (7.0) (6.2)
Purchase of intangibles related to titles, brands and customer relationships (59.4) (21.0)
Outflows on disposal of other intangible assets related to titles and brands - (3.2)
Acquisition of subsidiaries and operations, net of cash acquired (167.7) (593.6)
Acquisition of investment (5.0) (0.5)
Proceeds from disposal of subsidiaries and operations 179.3 7.4
Net cash outflow from investing activities (97.1) (668.2)
------------------------------------------------------------------------------- -------- ----------
Financing activities
Dividends paid to Shareholders (280.0) (201.9)
Dividends paid to non-controlling interests (17.5) (8.6)
Dividend paid in settlement of UBM acquisition liability - (59.0)
Proceeds from EMTN bond issuance 443.7 872.7
Repayment of loans (499.7) (1,179.4)
New loan advances 41.2 644.0
Repayment of private placement borrowings (143.4) (101.5)
New private placement borrowings - 313.6
Borrowing fees paid (9.4) (10.0)
Repayment of lease liabilities (34.5) -
Finance lease receipts 2.3 -
Acquisition of non-controlling interests (32.2) (5.3)
Cash (outflow)/inflow from share capital (15.9) 2.0
Net cash (outflow)/inflow from financing activities (545.4) 266.6
------------------------------------------------------------------------------- -------- ----------
Net increase in cash and cash equivalents 77.1 84.7
Effect of foreign exchange rate changes (6.9) (8.0)
Cash and cash equivalents at beginning of the year 124.9 48.2
------------------------------------------------------------------------------- -------- ----------
Cash and cash equivalents at end of the year 195.1 124.9
------------------------------------------------------------------------------- -------- ----------
Reconciliation of Movement in Net Debt
2019 2018
---------------------------------------------------------------------------------
Year Ended 31 December 2019 GBPm GBPm
---------------------------------------------------------------------------------- -------------- ----------
Increase in cash and cash equivalents in the year (including cash acquired) 77.1 84.7
Cash flows from net drawdown of borrowings and derivatives associated with debt 199.8 (539.4)
---------------------------------------------------------------------------------- -------------- ----------
Change in net debt resulting from cash flows 276.9 (454.7)
Borrowings acquired in acquisition of subsidiary (2018 related to UBM) - (702.6)
Non-cash movements including foreign exchange 93.1 (151.5)
Movement in net debt in the period (before opening IFRS 16 debt) 370.0 (1,308.8)
Net debt at beginning of the year (2,681.9) (1,373.1)
IFRS 16 lease liabilities at 1 January 2019 (343.6) -
IFRS 16 finance lease receivables at 1 January 2019 14.4 -
Net additions in IFRS 16 leases in year (16.5) -
Net debt at end of the year (2,657.6) (2,681.9)
----------------------------------------------------------------------------------- ---------- ----------
Notes to the Full Year Results
For the year ended 31 December 2019
1. General information
Informa PLC (the "Company") is a company incorporated in the
United Kingdom under the Companies Act 2006 and is listed on the
London Stock Exchange. The Company is a public company limited by
shares and is registered in England and Wales with registration
number 08860726. The address of the registered office is 5 Howick
Place, London, SW1P 1WG.
The Consolidated Financial Statements as at 31 December 2019 and
for the year then ended comprise those of the Company and its
subsidiaries and its interests in joint ventures and associates
(together referred to as "the Group").
These financial statements are presented in pounds sterling
("GBP"), the functional currency of the Parent Company, Informa
PLC.
2. Basis of preparation
The financial information for the year ended 31 December 2019
does not constitute the statutory financial statements for that
year, but is derived from those audited financial statements for
the year ended 31 December 2019 which will be published on
www.informa.com. While the financial information in these Full Year
Results has been prepared in accordance with International
Financial Reporting Standards (IFRS), these results do not in
isolation contain sufficient information to comply with IFRS. Those
financial statements have not yet been delivered to the Registrar
of Companies, but include the auditor's report which was
unqualified and did not contain a statement under Section 498 (2)
or (3) of the Companies Act 2006.
The Directors have, at the time of approving the Consolidated
Financial Statements, a reasonable expectation that the Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt
the going concern basis of accounting in preparing the Consolidated
Financial Statements.
The accounting policies, significant judgements and key sources
of estimation adopted in the preparation of the financial
information are consistent with those applied by the Group in its
Consolidated Financial Statements for the year ended 31 December
2018, subject to new accounting standards, and are disclosed in
full in the audited financial statements for the year ended 31
December 2019 which will be published on www.informa.com .
3. Restatement
Following the finalisation of the accounting for the UBM
acquisition under IFRS 3 Business Combinations, there was no
restatement to the Consolidated Income Statement for the year ended
31 December 2018 except for segmental results being restated to
reflect the new operating structure that was effective from 1
January 2019.
The Consolidated Balance Sheet as at 31 December 2018 has been
restated in relation to the UBM acquisition. One year on from the
acquisition of UBM, as is required, we have completed the
finalisation of the fair value of the acquisition balance sheet,
resulting in the following true-ups and minor adjustments: an
increase to Goodwill of GBP99.8m, an adjustment of GBP67m to
reflect the fair value of options related to certain minority
interests, a decrease of GBP18.2m to Intangible Assets, a decrease
to Translation Reserves of GBP11.4m, a reduction to Trade and Other
Receivables of GBP3.5m, a decrease to Deferred Tax Liabilities of
GBP0.6m and a decrease to Property and Equipment of GBP0.3m.
There was also a restatement for adjustments to the held for
sale amounts for the Life Sciences business with corresponding
adjustments to other line items in the balance sheet, with no
impact on total consolidated assets or liabilities. Assets
classified as held for sale reduced by GBP0.4m, and liabilities
directly associated with assets classified as held for sale reduced
by GBP2.2m, with net assets relating to held for sale increasing by
GBP1.8m to GBP65.2m.
4. Revenue
An analysis of the Group's revenue by type is as follows:
Year ended 31 December 2019
Informa Informa
Markets Informa Connect Informa Tech Intelligence Taylor & Francis Total
------------------
GBPm GBPm GBPm GBPm GBPm GBPm
------------------ ----------------- ---------------- ------------- ----------------- ----------------- --------
Exhibitor 1213.6 53.6 71.2 - - 1338.4
Subscriptions - - 42.0 296.0 302.5 640.5
Transactional
sales - - - 18.9 257.1 276.0
Attendee 71.2 142.3 84.3 - - 297.8
Marketing and
advertising
services 91.5 21.4 18.5 33.8 - 165.2
Sponsorship 73.9 58.3 40.2 - - 172.4
Total 1,450.2 275.6 256.2 348.7 559.6 2,890.3
------------------ ----------------- ---------------- ------------- ----------------- ----------------- --------
Year ended 31 December 2018(1)
Informa Informa
Markets (2) Informa Connect Informa Tech Intelligence Taylor & Francis Total
------------------
GBPm GBPm GBPm GBPm GBPm GBPm
------------------ ----------------- ---------------- ------------- ----------------- ----------------- --------
Exhibitor 840.8 42.7 41.5 - - 925.0
Subscriptions - - 27.3 277.9 282.3 587.5
Transactional
sales - - - 25.1 250.9 276.0
Attendee 56.3 133.3 55.4 - - 245.0
Marketing and
advertising
services 84.8 43.0 13.3 48.1 - 189.2
Sponsorship 50.3 58.5 38.0 - - 146.8
Total 1,032.2 277.5 175.5 351.1 533.2 2,369.5
------------------ ----------------- ---------------- ------------- ----------------- ----------------- --------
(1) 2018 restated for restructuring of divisions and the
alignment of UBM revenue types to Informa Groups revenue types (see
Note 3)
5. Business Segments
The Group has identified reportable segments based on financial
information used by the Directors in allocating resources and
making strategic decisions. We consider the chief operating
decision maker to be the Executive Directors.
The Group's five identified reportable segments under IFRS 8
Operating Segments are as described in the Strategic Report.
There is no difference between the group's operating segments
and the group's reportable segments.
Segment revenue and results
The Group's primary internal income statement performance
measures for business segments are revenue and adjusted operating
profit. A reconciliation of adjusted operating profit to statutory
operating profit and profit before tax is below:
Year ended 31 December 2019
Informa Taylor &
Informa Markets Informa Connect Informa Tech Intelligence Francis Total
-----------------
GBPm GBPm GBPm GBPm GBPm GBPm
----------------- ---------------- ---------------- --------------- ---------------- ---------------- --------
Revenue 1,450.2 275.6 256.2 348.7 559.6 2,890.3
----------------- ---------------- ---------------- --------------- ---------------- ---------------- --------
Adjusted
operating
profit before
joint ventures
and associates 491.9 47.1 70.4 104.1 218.1 931.6
Share of
adjusted
results of
joint ventures
and associates 1.4 0.1 - - - 1.5
----------------- ---------------- ---------------- --------------- ---------------- ---------------- --------
Adjusted
operating
profit 493.3 47.2 70.4 104.1 218.1 933.1
Intangible asset
amortisation
(1) (197.6) (17.9) (21.7) (23.2) (52.0) (312.4)
Impairment -
goodwill &
intangibles (4.7) - - - - (4.7)
Impairment -
right of use
assets (1.4) - - (0.9) (2.3) (4.6)
Acquisition and
integration
costs (39.3) (4.6) (12.2) (3.3) (0.3) (59.7)
Restructuring
and
reorganisation
costs (3.0) (0.2) (0.6) (4.8) - (8.6)
Subsequent
re-measurement
of contingent
consideration 1.6 (1.7) - (3.1) - (3.2)
VAT charges (1.8) - - - - (1.8)
----------------- ----------------
Operating profit 247.1 22.8 35.9 68.8 163.5 538.1
Loss on disposal
of businesses (95.4)
Investment
income 10.1
Finance costs (134.1)
----------------- ---------------- ---------------- --------------- ---------------- ---------------- --------
Profit before
tax 318.7
----------------- ---------------- ---------------- --------------- ---------------- ---------------- --------
(1) Excludes acquired intangible product development and
software amortisation
Year ended 31 December 2018 (restated) (2)
Informa Tech Informa
Informa Markets Informa Connect Intelligence Taylor & Francis Total
------------------
GBPm GBPm GBPm GBPm GBPm GBPm
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
Revenue 1,032.2 277.5 175.5 351.1 533.2 2,369.5
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
Adjusted
operating profit
before joint
ventures and
associates 356.5 45.7 40.1 91.4 197.4 731.1
Share of adjusted
results of joint
ventures and
associates 0.9 0.1 - - - 1.0
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
Adjusted
operating profit 357.4 45.8 40.1 91.4 197.4 732.1
Intangible asset
amortisation (131.3) (18.9) (16.4) (24.3) (52.7) (243.6)
Impairment (5.7) - (4.1) - - (9.8)
Acquisition and
integration
costs (72.8) (3.2) (9.3) (2.9) (0.7) (88.9)
Restructuring and
reorganisation
costs (0.9) (0.8) (0.2) (4.5) (6.7) (13.1)
Subsequent
re-measurement
of contingent
consideration 2.0 (9.2) - 7.3 - 0.1
UAE VAT charge (9.1) - - - - (9.1)
GMP pension
equalisation (4.0) (0.2) - (0.3) - (4.5)
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
Operating profit 135.6 13.5 10.1 66.7 137.3 363.2
Profit on
disposal of
businesses 1.1
Investment income 8.2
Finance costs (90.4)
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
Profit before tax 282.1
------------------ ---------------- ---------------- ------------- ------------------ ----------------- --------
(1) Excludes acquired intangible product development and
software amortisation
(2) 2018 restated for restructure of group divisions
6. Operating profit
Operating profit has been arrived at after
charging/(crediting):
Adjusted Adjusting Statutory Adjusted Adjusting Statutory
results items results results items results
2019 2019 2019 2018 2018 2018
GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- ------------- -------------- ------------- ------------- -------------- -------------
Cost of sales 981.3 - 981.3 780.8 - 780.8
Staff costs
(excluding adjusting
items) 692.8 - 692.8 596.8 - 596.8
Amortisation of other
intangible assets 41.9 312.4 354.3 42.5 243.6 286.1
Impairment - goodwill
& intangibles - 4.7 4.7 - 9.8 9.8
Impairment - IFRS 16
Right of use assets - 4.6 4.6 - - -
Depreciation - Plant
and equipment 17.2 - 17.2 13.1 - 13.1
Depreciation - IFRS
16 Right of use
assets 33.1 - 33.1 - - -
Acquisition-related
costs - 3.3 3.3 - 42.9 42.9
Integration-related
costs(1) - 56.4 56.4 - 46.0 46.0
Restructuring and
reorganisation costs - 8.6 8.6 - 13.1 13.1
Subsequent
re-measurement of
contingent
consideration - 3.2 3.2 - (0.1) (0.1)
Operating lease
expense
- Land and buildings - - - 35.0 - 35.0
- Other - - - 1.0 - 1.0
VAT charges - 1.8 1.8 - 9.1 9.1
GMP equalisation - - - - 4.5 4.5
Net foreign exchange
(gain)/loss (9.3) - (9.3) 7.6 - 7.6
Auditor's
remuneration for
audit services 3.3 - 3.3 3.2 - 3.2
Other operating
expenses 198.4 - 198.4 158.4 - 158.4
---------------------- ------------- -------------- ------------- ------------- -------------- -------------
Total net operating
expenses before
joint ventures and
associates 1,958.7 395.0 2,353.7 1,638.4 368.9 2,007.3
---------------------- ------------- -------------- ------------- ------------- -------------- -------------
(1) Integration costs include GBPnil (2018: GBP3.8m) of
impairment of other intangible assets
7. Adjusting items
The Board considers certain items should be recognised as
adjusting items (see glossary on page 48) since, due to their
nature or infrequency, such presentation is relevant to an
understanding of the Group's performance. These items do not relate
to the Group's underlying trading and are adjusted from the Group's
adjusted operating profit measure. The following charges/(credits)
are presented as adjusting items:
2019 2018
GBPm GBPm
---------------------------------------------------------- --- ------- -------
Intangible amortisation and impairment
Intangible asset amortisation 312.4 243.6
Impairment - acquisition related intangible assets 3.8 9.8
Impairment - acquisition related goodwill 0.9 -
Impairment - right of use assets 4.6 -
Acquisition costs 3.3 42.9
Integration costs 56.4 46.0
Restructuring and reorganisation costs
Redundancy and reorganisation costs 6.4 8.1
Vacant property costs relating to non-IFRS 16 leases 2.2 5.0
Subsequent re-measurement of contingent consideration 3.2 (0.1)
VAT charges 1.8 9.1
GMP equalisation charge - 4.5
Adjusting items in operating profit 395.0 368.9
Loss/(profit) on disposal of subsidiaries and operations 95.4 (1.1)
Investment income 8 (1.2) (1.2)
Finance costs 9 13.5 1.0
Adjusting items in profit before tax 502.7 367.6
Tax related to adjusting items 10 (83.5) (55.7)
Adjusting items in profit for the year 419.2 311.9
---------------------------------------------------------- --- ------- -------
The principal adjusting items are in respect of:
-- Intangible asset amortisation - the amortisation charges in
respect of intangible assets acquired through business combinations
or the acquisition of trade and assets;
-- Impairment - the Group tests for impairment on an annual
basis or more frequently when an indicator exists. Impairment
charges are individually disclosed and are excluded from adjusted
results;
-- Acquisition costs are the costs and fees incurred by the
Group in acquiring businesses and totalled GBP3.3m and included
GBP2.1m relating to the IHS Markit Database and Research portfolio
acquisition;
-- Integration costs are the costs incurred by the Group in
integrating share and asset acquisitions and included GBP42.4m
relating to the integration of UBM;
-- Restructuring and reorganisation costs are incurred by the
Group in business restructuring and operating model changes;
-- Subsequent re-measurement of contingent consideration is
recognised in the year as a charge or credit to the Consolidated
Income Statement unless qualifying as a measurement period
adjustment arising within one year from the acquisition date;
-- VAT charges of GBP1.8m in 2019 relate to provision for VAT
penalties in Egypt (GBP1.0m) and UAE (GBP0.8m). The 2018 amount
relates to a VAT penalty assessment in the UAE which the group is
disputing ;
-- The 2018 GMP equalisation charge relates to the additional
pension liability arising in the UK from the requirement to
equalise the guaranteed element of pensions.
-- Loss on disposal of subsidiaries and operations - the loss on
disposal primarily relates to the GBP120.6m loss from the disposal
of the Media Assets Portfolio and a GBP13.3m loss on Lifestyle
assets, partially offset by gains recognised from the disposal of
the Agribusiness and Life Sciences portfolios;
-- Investment income for 2019 was GBP1.2m, (2018 GBP1.2m) which
reflects the fair value movement on an acquisition put option
-- Finance costs of GBP13.5m primarily relate to the one-off
refinancing costs associated with the issue of the EMTN in October
2019; and
-- The tax items relate to the tax effect on the items above and
are analysed in the Taxation note
8. Investment income
2019 2018
--------------------------------------------------------------------------------
GBPm GBPm
-------------------------------------------------------------------------------- ----- -----
Interest income on bank deposits 4.7 3.8
Interest income finance lessor lease 0.8 -
Fair value gain on financial instruments through the income statement 3.4 3.2
Investment income before adjusting items 8.9 7.0
Adjusting item: fair value gain on derivatives associated with EMTN borrowings - 1.2
Adjusting item: fair value gain on acquisition put options 1.2 -
Total investment income 10.1 8.2
--------------------------------------------------------------------------------- ----- -----
9. Finance Costs
2019 2018
--------------------------------------------------------------------------
GBPm GBPm
-------------------------------------------------------------------------- ------ -----
Interest expense on borrowings and loans(1) 105.5 87.6
Interest on IFRS 16 leases 14.3 -
Interest cost on pension scheme net liabilities 1.4 1.1
--------------------------------------------------------------------------- ------ -----
Total interest expense 121.2 88.7
Fair value loss on financial instruments through the Income Statement (0.6) 0.7
Financing costs before adjusting items 120.6 89.4
Adjusting item: financing expense associated with UBM plc acquisition(2) - 1.0
Adjusting item: financing expense associated with 2019 EMTN(3) 13.5 -
Total financing expense 134.1 90.4
--------------------------------------------------------------------------- ------ -----
(1) Included in interest expense above is the amortisation of
debt issue costs of GBP5.1m (2018: GBP2.5m)
(2) The adjusting item for finance costs in 2018 relates to a
GBP1.0m charge related to the amortisation of fees associated with
the UBM plc RCF facility that was repaid in June 2018
(3) The adjusting item for finance costs in 2019 relates to the
finance fees associated with early refinancing debt associated with
the EMTN issued in October 2019.
10. Taxation
The tax charge/(credit) comprises:
2019 2018
---------------------------------------------------
GBPm GBPm
--------------------------------------------------- ------- -------
Current tax:
UK 21.6 40.5
Continental Europe 23.2 13.4
US 12.0 (7.9)
China 29.6 26.2
Rest of World 22.6 9.3
---------------------------------------------------- ------- -------
Total current tax 109.0 81.5
Deferred tax:
Current year (19.5) (21.0)
Credit arising from tax rate changes (16.9) -
--------------------------------------------------- ------- -------
Total deferred tax (36.4) (21.0)
---------------------------------------------------- ------- -------
Total tax charge on profit on ordinary activities 72.6 60.5
---------------------------------------------------- ------- -------
The tax on adjusting items within the Consolidated Income
Statement relate to the following:
Gross Tax Gross Tax
----------------------------------------------------------
2019 2019 2018 2018
GBPm GBPm GBPm GBPm
---------------------------------------------------------- -------- ------- -------- -------
Amortisation of other intangible assets (312.4) 92.1 (243.6) 55.2
Benefit of goodwill amortisation for tax purposes only - (23.0) - (15.1)
Deferred tax recognised on fair value adjustments - 16.5 - -
Impairment of intangibles and goodwill (4.7) 1.0 (9.8) 2.1
Impairment of right of use assets (4.6) 0.9 - -
Acquisition and integration related costs (59.7) 11.4 (88.9) 9.6
Restructuring and reorganisation costs (8.6) 1.8 (13.1) 2.9
Subsequent re-measurement of contingent consideration (3.2) 0.7 0.1 -
VAT charges (1.8) - (9.1) -
GMP equalisation charge - - (4.5) 0.8
(Loss)/profit on disposal of subsidiaries and operations (95.4) (20.4) 1.1 -
Investment income 1.2 - 1.2 -
Finance costs (13.5) 2.5 (1.0) 0.2
Total tax adjusting items (502.7) 83.5 (367.6) 55.7
----------------------------------------------------------- -------- ------- -------- -------
The current and deferred tax are calculated on the estimated
assessable profit for the year. Taxation is calculated in each
jurisdiction based on the prevailing rates of that
jurisdiction.
The total tax charge for the year can be reconciled to the
accounting profit as follows:
2019 2018
GBPm % GBPm %
------------------------------------------------------------------ --------- ------- ------ ------
Profit before tax 318.7 282.1
------------------------------------------------------------------ --------- ------- ------ ------
Tax charge at effective UK statutory rate of 19.0% (2018: 19.0%) 60.6 19.0 53.6 19.0
Different tax rates on overseas profits 22.8 7.1 9.4 3.3
Disposal related items 36.9 11.6 (0.2) (0.1)
Non-deductible expenditure 10.9 3.4 20.6 7.4
Non-taxable income (6.2) (1.9) (6.6) (2.3)
Benefits from financing structures (6.1) (1.9) (4.7) (1.7)
Tax incentives (1.9) (0.6) (1.7) (0.6)
Adjustments for prior years (6.9) (2.2) (6.1) (2.2)
Net movement in provisions for uncertain tax positions (4.3) (1.3) (5.6) (2.0)
Impact of changes in tax rates (16.9) (5.3) 0.0 0.0
Deferred tax recognised on fair value adjustments (16.5) (5.2) 0.0 0.0
Movements in deferred tax not recognised 0.2 0.1 1.8 0.6
Tax charge and effective rate for the year 72.6 22.8 60.5 21.4
------------------------------------------------------------------ --------- ------- ------ ------
In addition to the income tax charge to the Consolidated Income
Statement, a tax credit of GBP0.7m (2018: credit of GBP1.3m) has
been recognised directly in the Consolidated Statement of
Comprehensive Income during the year.
Current tax liabilities include GBP53.1m (2018: GBP57.4m) in
respect of provisions for uncertain tax positions. In 2017 the
European Commission announced that it would be opening a State Aid
investigation into the UK's Controlled Foreign Company regime and
in particular the exemption for group finance companies. Like many
UK based multinational companies, the Group has made claims in
relation to this exemption and will potentially have an additional
tax liability if a negative State Aid decision is upheld. The
maximum amount that could become payable by the Group in relation
to this matter is GBP37.2m. As part of the acquisition accounting
relating to contingent liabilities, an amount of GBP8.0m has been
provided in relation to UBM companies. We do not currently believe
it is probable that we will ultimately have to make a payment in
respect of this issue and therefore have not provided for any
additional liabilities.
11. Dividends
2019 2019 2018 2018
----------------------------------------------------------------
Pence per share Pence per share
GBPm GBPm
---------------------------------------------------------------- ---------------- ------- ---------------- -------
Amounts recognised as distributions to equity holders in the
year:
Final dividend for the year ended 31 December 2018 14.85p 185.8 - -
Interim dividend for the year ended 31 December 2019 7.55p 94.5 - -
Final dividend for the year ended 31 December 2017 - - 13.80p 113.6
Interim dividend for the year ended 31 December 2018 - - 7.05p 88.2
---------------------------------------------------------------- ---------------- ------- ---------------- -------
22.40p 280.3 20.85p 201.8
---------------------------------------------------------------- ---------------- ------- ---------------- -------
Proposed final dividend for the year ended 31 December 2019 and
actual dividend for the year
ended 31 December 2018 15.95p 199.5 14.85p 185.8
---------------------------------------------------------------- ---------------- ------- ---------------- -------
As at 31 December 2019 GBP0.4m (2018: GBP0.1m) of dividends were
still to be paid, and total dividend payments in the year were
GBP280.0m (2018: GBP201.9m). The proposed final dividend for the
year ended 31 December 2019 of 15.95p (2018: 14.85p) per share is
subject to approval by Shareholders at the Annual General Meeting
and has not been included as a liability in these financial
statements. The payment of this dividend will not have any tax
consequences for the Group.
In the year ended 31 December 2019 there were dividend payments
of GBP17.5m (2018: GBP8.6m) to non-controlling interests.
12. Earnings per share
Basic
The basic earnings per share calculation is based on profit
attributable to equity shareholders of the parent of GBP225.5m
(2018: GBP207.9m). This profit on ordinary activities after
taxation is divided by the weighted average number of shares in
issue (less those shares held by the Employee Share Trust and
ShareMatch), which is 1,250,660,231 (2018: 1,052,752,894).
Diluted
The diluted earnings per share calculation is based on the basic
EPS calculation above except that the weighted average number of
shares includes all potentially dilutive options granted by the
reporting date as if those options had been exercised on the first
day of the accounting period or the date of the grant, if later,
giving a weighted average of 1,255,739,205 (2018:
1,057,236,186).
The table below sets out the adjustment in respect of dilutive
potential Ordinary Shares:
2019 2018
---------------------------------------------------------------------- -------------- --------------
Weighted average number of shares used in basic earnings per share 1,250,660,231 1,052,752,894
Potentially dilutive Ordinary Shares 5,078,974 4,483,292
---------------------------------------------------------------------- -------------- --------------
Weighted average number of shares used in diluted earnings per share 1,255,739,205 1,057,236,186
---------------------------------------------------------------------- -------------- --------------
Earnings per share
In addition to basic EPS, adjusted diluted EPS has been
calculated to provide useful additional information on underlying
earnings performance. Adjusted diluted EPS is based on profit
attributable to equity shareholders which has been adjusted to
exclude items that, in the opinion of the Directors, would distort
underlying results with the items detailed in Note 7.
Earnings per share Per share amount Per share amount
Earnings 2019 Earnings 2018
2019 2018
------------------------------------------------------
GBPm Pence GBPm Pence
------------------------------------------------------ ----------- ----------------- ----------- -----------------
Profit for the year 246.1 221.6
Non-controlling interests (20.6) (13.7)
Earnings for the purpose of statutory basic
EPS/statutory basic EPS (p) 225.5 18.0 207.9 19.7
Effect of dilutive potential Ordinary Shares - - - -
Earnings for the purpose of statutory diluted
EPS/statutory diluted EPS (p) 225.5 18.0 207.9 19.7
Adjusted earnings per share Per share amount Per share amount
Earnings 2019 Earnings 2018
2019 2018
GBPm Pence GBPm Pence
Earnings for the purpose of statutory basic
EPS/statutory basic EPS (p) 225.5 18.0 207.9 19.7
Adjusting items:
Intangible amortisation and impairments 321.7 25.7 253.4 24.1
Acquisition and integration costs 59.7 4.8 88.9 8.4
Redundancy and restructuring costs 8.6 0.7 13.1 1.3
Subsequent re-measurement of contingent consideration 3.2 0.2 (0.1) -
VAT charges 1.8 0.1 9.1 0.9
GMP pension equalisation - - 4.5 0.4
Loss/(profit) on disposal of subsidiaries and
operations 95.4 7.6 (1.1) (0.1)
Investment income (1.2) (0.1) (1.2) (0.1)
Finance costs 13.5 1.1 1.0 0.1
Tax related to adjusting items (83.5) (6.6) (55.7) (5.3)
Earnings for the purpose of adjusted basic EPS/adjusted
basic EPS (p) 644.7 51.5 519.8 49.4
Effect of dilutive potential Ordinary Shares - (0.2) - (0.2)
Earnings for the purpose of adjusted diluted
EPS/adjusted diluted EPS (p) 644.7 51.3 519.8 49.2
13. Business combinations
The provisional amounts recognised in respect of the estimated
fair value of identifiable assets and liabilities for 2019,
acquisitions and payments made in 2019 relating to prior year
acquisitions were:
IHS Markit Database and Other acquisitions Prior year acquisitions
Research portfolio & deferred consideration Total
GBPm GBPm GBPm GBPm
Intangibles 29.6 15.5 - 45.1
Property and equipment - 0.2 - 0.2
IFRS 16 ROU assets 1.2 - - 1.2
Trade and other
receivables 10.0 1.4 - 11.4
Cash and cash equivalents - 1.9 - 1.9
Current tax liabilities (0.1) - - (0.1)
Trade and other payables (4.9) (0.9) - (5.8)
Deferred income (17.7) (4.5) - (22.2)
Provisions (1.2) - - (1.2)
Finance lease liabilities (1.2) - - (1.2)
Deferred tax liabilities (2.0) (6.9) - (8.9)
Identifiable net assets
acquired 13.7 6.7 - 20.4
Goodwill 109.6 17.4 - 127.0
Total consideration 123.3 24.1 - 147.4
Satisfied by:
Cash consideration 123.3 17.5 - 140.8
Deferred and contingent
cash consideration - 6.6 25.2 31.8
Deferred consideration - - - -
Total consideration 123.3 24.1 25.2 172.6
Net cash outflow arising
on acquisitions:
Initial cash consideration 123.3 17.5 - 140.8
Deferred and contingent
consideration paid - 3.6 25.2 28.8
Less: cash acquired - (1.9) - (1.9)
Net cash outflow arising
on acquisitions 123.3 19.2 25.2 167.7
14. Movements in net debt
Net debt consists of cash and cash equivalents and includes bank
overdrafts, borrowings, derivatives associated with debt
instruments, and other loan note receivables where these are
interest bearing and do not relate to deferred contingent
arrangements.
At 1 January IFRS 16 At 31 December
2019 adjustment at Non-cash movements Cash flow Exchange movements 2019
GBPm 1 Jan 2019 GBPm GBPm GBPm GBPm
Cash at bank and
in hand 168.8 - - 33.2 (6.9) 195.1
Overdrafts (43.9) - - 43.9 - -
Cash and cash
equivalents 124.9 - - 77.1 (6.9) 195.1
Bank loans due in
less than one
year (156.9) - - 152.7 4.2 -
Bank loans due in
more than one
year (78.5) - - 34.3 (12.7) (56.9)
Bank loan fees due
in more than one
year 0.9 - (1.5) 2.8 - 2.2
Private placement
loan notes due in
less than one
year - - (155.5) - 3.3 (152.2)
Private placement
loan notes due in
more than one
year (1,396.4) - 156.8 143.4 35.6 (1,060.6)
Private placement
loan note fees 3.4 - (0.7) - - 2.7
Bond borrowings
due in more than
one year (1,163.0) - 4.4 (172.2) 51.7 (1,279.1)
Bond borrowing
fees 7.4 - (3.0) 6.6 - 11.0
Derivative assets
associated with
borrowings 1.5 - 2.4 - - 3.9
Derivative
liabilities
associated with
borrowings (25.2) - 2.8 - - (22.4)
Lease liabilities - (343.6) (19.7) 34.5 12.2 (316.6)
Finance lease
receivables - 14.4 3.2 (2.3) - 15.3
Net debt (2,681.9) (329.2) (10.8) 276.9 87.4 (2,657.6)
Included within the net cash inflow of GBP276.9m (2018: outflow
of GBP588.9m) is GBP499.7m (2018: GBP1,179.4m) of loan repayments,
GBP41.2m (2018: GBP644.0m) of facility loan drawdowns, GBP443.7m
(2018: GBP872.7m) of proceeds from the EMTN bond issuance,
GBP143.4m (2018: GBP101.5m) of private placement repayments and
GBPnil (2018: GBP313.6m) of private placement drawdowns.
15. Borrowings
Total borrowings, excluding derivative assets and liabilities
associated with borrowings, are as follows:
2019 2018
GBPm GBPm
Current
Bank overdraft - 43.9
Bank borrowings ($200.0m) - repaid March 2019 - 156.9
Private placement loan note ($200.5m) -repaid February 2020 152.2 -
Total current borrowings 152.2 200.8
Non-current
Bank borrowings - revolving credit facility(1) 56.9 78.5
Bank debt issue costs (2.2) (0.9)
Bank borrowings - non-current 54.7 77.6
Private placement loan note ($385.5m) - due Dec 2020 - 302.5
Private placement loan note ($45.0m) - due June 2022 35.0 36.5
Private placement loan note ($120.0m) - due October 2022 91.1 94.2
Private placement loan note ($55.0m) - due January 2023 41.7 43.1
Private placement loan note ($76.1m) - due June 2024 61.8 60.9
Private placement loan note ($80.0m) - due January 2025 60.7 62.8
Private placement loan note ($200.0m) - due January 2025 151.8 156.9
Private placement loan note ($130.0m) - due October 2025 98.7 102.0
Private placement loan note ($365.0m) - due January 2027 277.1 286.4
Private placement loan note ($116.0m) - due June 2027 90.9 94.2
Private placement loan note ($200.0m) - due January 2028 151.8 156.9
Private debt issue costs (2.7) (3.4)
Private placement - non-current 1,057.9 1,393.0
Bond borrowings ($350.0m) - repaid in November 2019 - 279.1
Euro Medium Term Note (EUR650.0m) - due July 2023 553.4 583.9
Euro Medium Term Note (GBP300.0m) - due July 2026 300.0 300.0
Euro Medium Term Note (EUR500.0m) - due April 2028 425.7 -
Bond borrowings issue costs (11.0) (7.4)
Bond borrowings - non-current 1,268.1 1,155.6
Total non-current borrowings 2,380.7 2,626.2
2,532.9 2,827.0
(1) On 24 January 2020 the two tranches of RCF were extended by
one further year, resulting in GBP600m maturing in February 2025
and GBP300m maturing in February 2023
There have been no breaches of covenants under the Group's bank
facilities and private placement loan notes during the year. The
Group does not have any of its property and equipment and other
intangible assets pledged as security over loans.
At 31 December 2019, the Group had private placement loan notes
amounting to $1,587.6m (2018: $1,772.6m). As at 31 December 2019,
the note maturities ranged between one and eight years (2018: two
and nine years), with an average duration of 5.3 years (2018: 5.8
years), at a weighted average interest rate of 4.1% (2018:
4.1%).
For the purpose of refinancing the borrowings the Group issued
the following Euro Medium Term Notes (EMTNs), which are debt
instruments traded outside of the USA and Canada.
On 2 July 2018, the bonds were priced with an issue date of 5
July 2018:
-- A 5-year fixed term note, until July 2023, of value EUR650m;
-- A 8-year fixed term note, until July 2026, of value GBP300m.
In addition, EMTN loan notes totalling EUR500.0m were issued on
22 October 2019, with a maturity date of 22 April 2028.
The Group maintains the following lines of credit:
-- GBP900.0m (2018: GBP855.0m) revolving credit facility, of
which GBP56.9m (2018: GBP78.5m) was drawn down at 31 December 2019.
Interest is payable at the rate of LIBOR plus a margin;
-- GBP152.9m (2018: GBP167.1m) comprising a number of bilateral
bank uncommitted facilities that can be drawn down to meet
short-term financing needs, of which GBPnil (2018: GBP43.9m) was
drawn at 31 December 2019. These facilities consist of GBP70.0m
(2018: GBP101.0m), USD 22.3m (2018: USD 25.0m), EUR40.0m (2018:
EUR42.0m), AUD 1.0m (2018: AUD 1.0m), and CAD 2.0m (2018: CAD
2.0m), SGD 2.3m (2018: SGD 2.3m) and CNY 50.0m (2018: CNY 50.0m).
Interest is payable at the local base rate plus a margin; and
-- Four bank guarantee facilities comprising in aggregate up to
USD 10.0m (2018: USD 10.0m), EUR7.0m (2018: EUR7.0m), GBP9.0m
(2018: GBP2.0m) and AUD 1.5m (2018: AUD 1.5m).
The effective interest rate for the year ended 31 December 2019
was 3.9% (2018: 3.8%).
16. Notes to the cash flow statement
2019 2018
GBPm GBPm
Profit before tax 318.7 282.1
Adjustments for:
Depreciation of property and equipment 17.2 13.1
Depreciation of right of use asset 33.1 -
Amortisation of other intangible assets 354.3 286.1
Impairment - goodwill 0.9 -
Impairment - acquisition intangible assets 3.8 9.8
Impairment - other intangible assets - 3.8
Impairment - property and equipment - 2.7
Impairment - right of use assets 4.6 -
Share-based payments 10.4 8.1
Subsequent re-measurement of contingent consideration 3.2 (0.1)
Loss/(profit) on disposal of businesses 95.4 (1.1)
Pension curtailment gain - (0.8)
GMP Pension equalisation charge - 4.5
Investment income (10.1) (8.2)
Finance costs 134.1 90.4
Share of adjusted results of joint ventures and associates (1.5) (1.0)
Operating cash inflow before movements in working capital 964.1 689.4
Decrease in inventories 12.3 3.2
(Increase)/decrease in receivables 20.6 89.7
Increase/(decrease) in payables (33.1) (142.9)
Movements in working capital (0.2) (50.0)
Pension deficit recovery contributions (5.4) (4.4)
Cash generated by operations 958.5 635.0
17. Share capital and share premium
Share capital
Share capital as at 31 December 2019 amounted to GBP1.3m (2018:
GBP1.3m). For details of options issued over the Company's
shares.
2019 2018
GBPm GBPm
Issued and fully paid
1,251,798,534 (2018: 1,251,798,534) Ordinary Shares of 0.1p each 1.3 1.3
2019 2018
Number of shares Number of shares
At 1 January 1,251,798,534 824,005,051
Issue of new shares in relation to consideration for the acquisition of UBM plc - 427,536,794
Other issue of shares - 256,689
At 31 December 1,251,798,534 1,251,798,534
Share premium
2019 2018
GBPm GBPm
At 1 January and 31 December 905.3 905.3
18. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note. The transactions between the Group and its
joint ventures and associates are disclosed below. The following
transactions and arrangements are those which are considered to
have had a material effect on the financial performance and
position of the Group for the year.
Transactions with Directors
There were no material transactions with Directors of the
Company during the year, except for those relating to remuneration
and shareholdings. For the purposes of IAS 24 Related Party
Disclosures, Executives below the level of the Company's Board are
not regarded as related parties.
Other related party disclosures
At 31 December 2019, Informa Group companies have guaranteed the
UK pension scheme liabilities of the Taylor & Francis Group
Pension and Life Assurance Scheme, the Informa Final Salary Scheme
and the UBM Pension Scheme.
Transactions with related parties are made at arm's length.
Outstanding balances at year-end are unsecured and settlement
occurs in cash. There are no bad debt provisions for related party
balances as at 31 December 2019, and no debts due from related
parties have been written off during the year. During the period,
Informa entered into related party transactions to the value of
GBP0.2 (2018: GBP0.2m) with a balance of GBP0.2m (2018: GBP0.1m)
outstanding at 31 December 2019.
19. Post Balance Sheet events
On 9 January 2020 the Group acquired F1000 Research for
consideration of GBP16.0m. The business is an open research
publishing company and forms part of the Taylor & Francis
business.
On 17 January 2020 a payment of GBP26.6m ($35.0m) was made in
relation to the settlement of an option held by a third-party that
was exercised on 15 January 2020, in relation to certain Fashion
events in the US.
22 January 2020 the Group gave notice of early repayment to the
holders of the private placement debt maturing in December 2020. A
principal repayment of $200.5m plus interest and make-whole
payments of $6.0m were paid on 24 February 2020.
In the first quarter of 2020, the Group secured a Surplus
Committed Credit Facility of GBP750m, with maturity of up to 30
months.
Glossary of terms: Alternative Performance Measures
The group provides adjusted results and underlying measures in
addition to statutory measures, in order to provide additional
useful information on business performance trends to Shareholders.
The Board considers these non-GAAP measures as the most appropriate
way to measure the Group's performance because it aids
comparability to the prior year and is also in line with the
similarly adjusted measures used by peers and therefore facilitates
comparison.
The terms "adjusted" and "underlying" are not defined terms
under IFRS and may not therefore be comparable with similarly
titled measurements reported by other companies. These measures are
not intended to be a substitute for, or superior to, IFRS measures.
The Financial Review provides reconciliations of Alternative
Performance Measures (APMs) to statutory measures and also provides
the basis of calculation for certain APM metrics. These APMs are
provided on a consistent basis with the prior year.
Adjusted results and adjusting items
Adjusted results exclude items that are commonly excluded by
peers across the knowledge and information and media sector:
amortisation and impairment of goodwill and intangible assets
relating to businesses acquired and other intangible asset
purchases of book lists, journal titles, acquired databases and
brands related to exhibitions and conferences, acquisition,
impairment of right of use assets, acquisition and integration
costs, restructuring and reorganisation costs, subsequent
remeasurement of contingent consideration, profit or loss on
disposal of businesses and other items that in the opinion of the
Directors would impact the comparability of underlying results.
Adjusted results are prepared for the following measures which
are provided in the Consolidated Income Statement. Adjusted
operating profit, Adjusted net finance costs, Adjusted Profit
before tax (PBT), Adjusted tax charge, Adjusted Profit After Tax
(PAT), Adjusted earnings, and Adjusted diluted earnings per share.
Adjusted operating margin, Adjusted tax charge and Adjusted EBITDA
are used in the Financial Review.
Adjusted net finance costs
Adjusted net finance costs are the sum of finance costs and
investment income and exclude adjusting items for investment income
and finance costs.
Dividend cover
Dividend cover is the ratio of adjusted diluted earnings per
share to dividends per share for the year, and is provided to
enable year-on-year comparability on the level at which dividends
are covered by earnings. Dividends consist of the interim dividend
that has been paid for the year and the proposed final dividend for
the year. Adjusted diluted earnings per share are adjusted to be
stated before adjusting items impacting adjusted diluted earnings
per share. The Financial Review provides the calculation of
dividend cover.
Dividend payout ratio
This is ratio of the total amount of dividends per share paid
and proposed to shareholders relating to a financial year, relative
to the adjusted earnings per share for the year.
EBITDA
EBITDA is earnings before interest, tax, depreciation,
amortisation and other non-cash items such as share-based
payments.
Adjusted EBITDA is earnings before interest, tax, depreciation,
amortisation and other non-cash items such as share-based payments
and before adjusting items.
Covenant-adjusted EBITDA for interest cover purposes is earnings
before interest, tax, depreciation and amortisation and adjusting
items. It is adjusted to be on a pre-IFRS 16 basis.
Covenant-adjusted EBITDA for leverage purposes is earnings
before interest, tax, depreciation and amortisation and adjusting
items. It is adjusted to include a full year's trading for
acquisitions and remove trading results for disposals, and adjusted
to be on a pre-IFRS 16 basis.
Effective tax rate
The effective tax rate is shown as a percentage and is
calculated by dividing the adjusted tax charge by the adjusted
profit before tax. The Financial Review provides the calculation of
the effective tax rate.
Free cash flow
Free cash flow is a key financial measure of cash generation and
represents the cash flow generated by the business before cash
flows relating to acquisitions and disposals and their related
costs, dividends, any new equity issuance or purchases and debt
issues or repayments. Free cash flow is one of the Group's key
performance indicators, and is an indicator of operational
efficiency and financial discipline, illustrating the capacity to
reinvest, fund future dividends and repay debt. The Financial
Review provides a reconciliations of free cash flow to statutory
measures
Interest cover
Interest cover is calculated according to the Group's debt
covenants and is the ratio of covenant-adjusted EBITDA for interest
cover purposes to adjusted net finance costs and excluding fair
value finance items. It is provided to enable the assessment of our
debt position together with our compliance with these specific debt
covenants. The Financial Review provides the basis of the
calculation of interest cover.
Leverage ratio
The leverage ratio is calculated according to the Group's debt
covenants and is the ratio of net debt to covenant-adjusted EBITDA
for leverage purposes and is provided to enable the assessment of
our debt position together with compliance with our specific debt
covenants. Covenant-adjusted net debt is translated using average
exchange rates for the 12-month period and is adjusted to include
deferred consideration payable, exclude derivatives associated with
borrowings, and to be on a pre-IFRS 16 basis. The Financial Review
provides the basis of the calculation of the leverage ratio.
Operating Cash flow and operating cash flow conversion
Operating cash flow is a financial measure used to determine the
efficiency of cash flow generation in the business and is measured
by and represents free cash flow adding back interest, tax,
restructuring and reorganisation costs. The Financial Review
reconciles operating cash flow to statutory measures.
Operating cash flow conversion is a measure of the strength of
cash generation in the business and is measured as a percentage by
dividing operating cash flow by adjusted operating profit in the
reporting period. The Financial Review on page 11 provides the
calculation of operating cash flow conversion.
Pro-forma EPS growth
Pro-forma adjusted diluted EPS growth has been prepared to
provide a useful year-on-year comparable. In 2019 it is calculated
by comparing 2019 adjusted diluted EPS to 2018 adjusted diluted EPS
which has been adjusted to reflect a full 12 months of ownership of
UBM, to remove the ownership of Life Sciences media brands
portfolio results and to adjust 2018 for related finance costs and
share issuance to make them comparable with 2019. The Financial
Review provides the calculation of pro-forma EPS growth.
Underlying measures of growth
Underlying measures of growth refer to revenue and adjusted
operating profit results adjusted for acquisitions and disposals,
the phasing of events, including biennials, the impact of changes
from implementing new accounting standards and accounting policy
changes (e.g. IFRS 16 from 2019) and the effects of changes in
foreign currency by adjusting the current year and prior year
amounts to use consistent currency exchange rates. Phasing and
biennial adjustments relate to the alignment of comparative period
amounts to the timing of events in the current year.
The results from acquisitions are included on a pro-forma basis
from the first day of ownership in the comparative period.
Disposals are similarly adjusted for on a pro-forma basis to
exclude results in the comparative period from the date of
disposal. Underlying measures are provided to aid comparability of
revenue and adjusted operating profit results against the prior
year. The Financial Review provides the reconciliation of
underlying measures of growth to reported measures of growth in
percentage terms.
Annual Report and Financial Statements 2019
The Annual Report and Financial Statements for the financial
year ended 31 December 2019 will be published on www.informa.com in
April 2020. The audited Financial Statements for the year ended 31
December 2019 together with the report of the independent auditors
are published on www.informa.com.
Copies of this announcement may be obtained during normal
business hours from the Company Secretary at the Company's office
at 5 Howick Place, London, SW1P 1WG.
Cautionary Statements
This results release contains certain forward-looking
statements. These statements are subject to a number of risks and
uncertainties and actual results and events could differ materially
from those currently being anticipated. The terms 'expect', 'should
be', 'will be' and similar expressions (or their negative) identify
forward looking statements. Factors which may cause future outcomes
to differ from those foreseen in forward-looking statements
include, but are not limited to: general economic conditions and
business conditions in Informa's markets; exchange rate
fluctuations, customers' acceptance of its products and services;
the actions of competitors; legislative, fiscal and regulatory
developments; changes in law and legal interpretation affecting
Informa's intellectual property rights and internet communications;
and the impact of technological change. Past performance should not
be taken as an indication or guarantee of future results, and no
representation or warranty, express or implied, is made regarding
future performance. These forward-looking statements speak only as
of the date of this results release and are based on numerous
assumptions regarding Informa's present and future business
strategies and the environment in which Informa will operate in the
future. Except as required by any applicable law or regulation, the
Group expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained in this document to reflect any change in the Group's
expectations or any change in events, conditions or circumstances
on which any such statement is based after the date of this
announcement or to update or keep current any other information
contained in this results release.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
FR UROARRRUOARR
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