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

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Chairman’s Statement
Richard Ensor
Highlights
Euromoney Institutional Investor PLC, the
international online information and events
group, achieved a record adjusted profit
before tax of £106.8 million for the year to
September 30 2012, against £92.7 million in
2011. Adjusted diluted earnings a share were
65.9p (2011: 56.1p). The directors recommend
an 18% increase in the final dividend to
14.75p, giving a total for the year of 21.75p
(2011: 18.75p), to be paid to shareholders on
February 14 2013.
Total revenues for the year increased by 9% to
£394.1 million. Underlying revenues, excluding
acquisitions, increased by 3%. The acquisition
of Ned Davis Research (NDR) in August 2011
has helped increase the proportion of revenues
generated from subscriptions to more than
50% for the first time. Headline subscription
revenues increased by 17% to £199.7 million
and underlying subscriptions, excluding NDR,
by 5%.
The adjusted operating margin was unchanged
at 30%. Costs, particularly headcount, have
remained tightly controlled throughout the year.
At the same time, the group has increased its
investment in technology and new products as
part of its online growth strategy.
Net debt at September 30 was £30.8 million
compared with £88.5 million at March 31 and
£119.2 million at September 30 2011. In the
absence of any significant acquisitions, net
debt has fallen by £88.4 million since the start
of the year, reflecting the group’s strong cash
flows and an operating cash conversion rate*
in excess of 100%. The group’s net debt is
now at its lowest level for more than a decade
and its robust balance sheet provides plenty
of headroom for the group to pursue its
acquisition strategy.
As highlighted in previous trading updates,
market conditions became noticeably tougher
from June. The uncertainty over Europe
remains, as does a solution to the pending
US fiscal cliff. Meanwhile global financial
institutions face the combined challenges of
difficult markets, increased capital requirements
and a tougher regulatory environment. Inevitably
they have responded by cutting costs,
particularly people, and exiting some parts
of their business. However, the outlook for
emerging markets, which account for more
than a third of the group’s revenues, is more
positive. The board expects this challenging
trading background to continue at least into the
early part of 2013.
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