1st Aug 2014 08:15
LONDON (Alliance News) - UBM PLC Friday said it remains on track to meet expectations for the full year and raised its interim dividend, as profit in the half year to end-June was boosted by an exceptional gain, offsetting a decline in revenue caused by the strength of sterling.
The events marketing and communications services business proposed an interim dividend of 6.8 pence, up from 6.7 pence.
In the half year to end-June, the company posted a pretax profit of GBP82.5 million, up from GBP40.5 million in the previous year, despite revenue declining to GBP361.0 million from GBP391.8 million. It was boosted by a GBP20.8 million contribution from its share in a joint venture.
UBM booked an exceptional gain from the sale of PA Group Ltd's weather forecasting business Meteogroup. UBM has a 17% interest in PA Group.
UBM said that the decline in revenue was due to the strength of sterling, which knocked off GBP31.7 million. On a constant currency basis, revenue was up 0.3%, it said.
Events revenues was down 2.8% as a result of the strength of sterling. Within this, annual events was down 5.0%, annual stand revenues were down 2.2%, sponsorship and other revenues was down 10.1%, and attendee revenue declined to GBP19.3 million, from GBP22.7 million.
The company ran 23 biennial events during the first half, which contributed GBP12.4 million in revenue.
In this segment, UBM continues to expect full year underlying revenue growth to be broadly in line with 2013, with an operating profit margin in the range of 30%. As at June 30, deferred revenue for Events was GBP190.5 million, up 4.2% from the end of 2013.
Other marketing services revenue declined 27.0% to GBP48.5 million, from GBP66.4 million, as the company refocused the business on sustainable online and print marketing services closely aligned with its Events business. Stripping out activities that it sold or discontinued as part of this refocusing, the decline in revenue was 9.4%.
UBM expects other marketing services revenue to be between GBP90 million and GBP100 million for the full year.
In its PR Newswire business, revenue dropped 6.4% to GBP98.3 million, from GBP105.0 million, particularly hampered by a decline in its US distribution business caused by slow growth in the text press release market, and in its CNW business, as slower sales of its MediaVantage monitoring product offset growth in distribution.
UBM expects PR Newswire to see growth in line with 2013 for the full year.
Newly appointed Chief Executive Tim Cobbold said that in his first three months in his role, he completed the first stage of his review of the business. UBM plans to host a capital markets day later in the year to present a plan for the company's future developments.
Shares in UBM were trading up 0.4% at 622.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
UBM