Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
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pension deficit increased from £1.9 million to a
deficit of £4.8 million reflecting a £5.5 million
increase in the pension obligation offset by a
£2.6 million increase in the asset value.
4.4.6 Capital Appreciation Plan
(CAP)
The CAP is a highly geared performancebased
share option scheme which both directly
rewards executives for the growth in profits of
the businesses they manage, and links this to
the delivery of shareholder value by satisfying
rewards in a mix of shares in the company and
cash. The current CAP, CAP 2010, aims to mirror
the success of CAP 2004 for both shareholders
and management by delivering exceptional
profit growth over the performance period.
Further details of CAP 2004 and CAP 2010 are
set out in the Company Shares Schemes section
in the Directors’ Remuneration Report.
4.4.7 Acquisitions and disposals
Acquisitions remain an important part of the
group’s growth strategy. In particular the board
believes that acquisitions are valuable for taking
the group into new sectors, for bringing new
technologies into the group and for increasing
the group’s revenues by buying into rapidly
growing niche businesses. The group continues
to look for strategic acquisitions in the areas of
international finance and commodities, and in
emerging markets.
Acquisitions
Purchase of new business – Global Grain
Geneva
On February 29 2012, the group acquired
Global Grain Geneva, the world’s leading
event for international grain traders. The
initial consideration paid was €6,159,000
(£5,134,000). A further net consideration of
€93,000 (£77,000) is expected to be paid
dependent upon the audited results of the
business for the year to February 2013. The
Purchase of associate – Global Grain Asia
Also on February 29 2012, the group acquired
50% of Global Grain Asia, a new event for grain
industry professionals in the Asia-Pacific region,
for €671,000 (£567,000). The group has the
option to purchase the remaining 50% equity
holding of GGA Pte. Limited in March 2014
and if exercised expects to pay €1,021,000
(£813,000).
Provisional fair value and goodwill update –
Ned Davis Research (NDR)
In August 2011, the group acquired 85% of
the equity share capital of NDR, the US-based
provider of independent financial research
to institutional investors, for an initial cash
consideration of US$112.0 million (£68.5
million). Following true-up adjustments during
the year to the cash payable following the final
working capital calculation, the cash receivable
from non-controlling interests, the finalisation
of the sellers’ tax liability, the accounting policy
alignment of property, plant and equipment and
the recognition of previously unrecognised tax
liabilities, the related goodwill was increased by
£1.0 million to £35.3 million.
Further details of the above acquisitions are set
out in note 15.
Increase in equity holdings
During the year the group spent £840,000
on an additional 1.12% interest in Internet
Securities Inc., the emerging market content
aggregator and data business, taking its holding
to 99.92%.
4.4.8 Headcount
The number of people employed is monitored
monthly to ensure there are sufficient resources
to meet the forthcoming demands of each
business and to make sure that the businesses
continue to deliver sufficient profits to
support the people they employ. During 2012
essential or for investment purposes. Headcount
at September 2012 was 2,133, an increase
of only 22 since September 2011, the main
increases being in technology to support the
stepped up investment in that area and at NDR
as the directors expand its sales force into new
regions.
4.4.9 Marketing and digital
development
In 2012 group marketing strategy has focused
on widening the prospect pool through the
group’s communities focus and driving online
revenue through new product innovation.
The group continues to push boundaries to
maintain customer acquisition by adopting a
more nurturing approach to marketing – with
the explosion of niche online communities and
online audience development. The marketing
and digital development team create and
manage 70 communities with over 140,000
members, growing at a 6% monthly average.
These communities reach finance, business and
commodities professionals across the globe. In
addition, the online products have now achieved
over 14% growth in unique visitors.
In 2012 the group spent £9.9 million in
online product development to drive multidevice
access to the group’s product portfolio,
dedicated community services and launch new
premium data-based subscriber services. The
group’s dedicated online customer network for
aviation finance has now engaged over 3,300
senior members and provides a platform to
keep them updated on industry news, events,
share opinions and network together. The
group’s innovative Investor Intelligence Network
has 1,300 members, with a combined US$18
trillion in assets, providing a private online
forum where institutional investors can question
their peers in a confidential environment and
engage with investment managers on their
Directors’ Report
Company Accounts Group Accounts
Our Governance
Our Performance
acquisition of Global Grain is consistent with the
the directors have focused on maintaining
mandates. The mobile and tablet applications
group’s strategy of building fast growing global
headcount at a similar level to that in 2011,
continue to roll out and have provided greater
event businesses.
hiring new heads only where considered
online engagement, with a 70% growth in
15