25th Jan 2023 09:21
(Alliance News) - Ascential PLC on Wednesday said it is proposing to separate its digital commerce assets into an independent US-listed company, as it emphasised a focus on events for its core business.
Meanwhile, the London-based business-to-business media firm announced a series of leadership changes, with its chief executive and the chair moving to the planned new US-listed business, and its operating chief leaving the company altogether.
In addition, it said it plans to sell its WGSN consumer trends unit.
Ascential shares rose 22% to 253.40 pence each on Wednesday morning in London, the best FTSE 250 performer.
"Subject to shareholder approvals, it is the board's intention to pursue both a separation of its world-wide Digital Commerce assets into an independent, publicly traded company listed in the United States as well as a process for the sale of WGSN, with our world-class Events businesses continuing with a UK listing as Ascential PLC," the company said.
Ascential said the moves will provide growth funds for the company. It said a "significant" amount of any WGSN proceeds will be returned to shareholders.
The soon-to-be spun out digital unit will be better enabled to "attract and retain talent, have its own currency for M&A and ultimately open up incremental pools of capital", Ascential said.
Current Ascential Chair Scott Forbes and Chief Executive Officer Duncan Painter will switch to the spun-out digital commerce business, serving in the same roles.
Meanwhile, Senior Independent Director Rita Clifton will become chair of Ascential, with Philip Thomas becoming CEO. Thomas is currently the CEO of Ascential Intelligence & Events.
Meanwhile, COO Paul Harrison will leave the company "in due course." Ascential added that Chief Financial Officer Mandy Gradden will continue in her role.
Ascential also proposed to sell WGSN, with its UK listing continuing as its events company.
On WGSN, Ascential CEO Painter said: "As the clear world-leader in product design trends and insights, WGSN is an outstanding and highly attractive business and well positioned for new, long-term owners to take it through its next chapter of growth."
In addition, Ascential said it saw double-digit revenue growth across all four of its segments in 2022.
It now expects revenue to be at least GBP520 million, ahead of the top end of the current consensus range of GBP479 million to GBP516 million and 49% higher than GBP349.3 million in 2021.
Adjusted earnings before interest, tax, depreciation and amortisation are now expected at GBP118 million, up 33% from GBP88.9 million, and also ahead of the current consensus range, which sits between GBP91 million and GBP115 million.
Looking ahead, CEO Painter said: "While the economic outlook for 2023 remains unclear, our events businesses have demonstrated extremely high levels of customer engagement in 2022, reinforcing their industry leadership and which has translated into strong levels of rebooking for 2023."
Ascential expects net debt as at December 31, 2022 to be at GBP218 million, nearly trebled from GBP73.8 million a year prior.
By Tom Budszus, Alliance News reporter
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