28th Feb 2014 09:07
LONDON (Alliance News) - - Marketing, media and events company UBM PLC Friday reported a fall in full-year profit, as it disposed of its data services business and restructured its marketing services activities.
London-headquartered UBM posted pretax profit of GBP109.5 million for 2013, down from GBP122.2 million in 2012.
Total adjusted operating profit margin fell to 32.2% from 33.2%, driven by weaker profitability in the first quarter and ongoing investment to improve the events portfolio and some wage inflation in a number of the firm's fast-growing core markets.
Revenue, however, rose to GBP793.9 million, from GBP769.4 million in 2012, which the firm attributed to revenue growth for the events division to GBP462.7 million, from GBP427.2 million a year earlier, an increase of 8.3%
The PR Newswire arm saw growth of 2.7% to GBP201.8 million from GBP196.4 million a year earlier, but the "other marketing services" division struggled, with revenue declining 11% to GBP129.4 million from GBP145.8 million in 2012.
The other marketing services divisions underwent a substantial restructure programme to align it more closely to the events arm. The FTSE 250 firm ceased printing of a number of titles, particularly those serving US technology communities.
As part of this restructuring programme, UBM Channel and the Property Week and TTG titles were classified as ?held for sale? at the half year, and were sold by year end.
However, the firm said it expects to generate revenues of GBP100 million and to achieve margin of 10% across the other marketing services division in 2014.
During 2013, UBM sold its Data Services business Delta for GBP146.5 million, generating a GBP20.5 million profit on the disposal, it said.
Looking ahead the company said it expects the events segment to grow in 2014, with underlying growth in line with 2013, while growth in China, its largest events market, will continue to contribute to this result.
"Expansion in China and other markets will offset continued cyclical pressure on our shows serving the UK Built Environment, and venue space constraints at a number of our largest events," it added.
UBM said it expects underlying growth in constant currency terms in 2014 to be in line with 2013 for its Events business and for PR Newswire. It said it expects its adjusted operating margin to be better than in 2012, its previous biennial down year for events, partly due to the shedding of less profitable businesses.
Outgoing Chief Executive David Levin said the company's strategy to develop UBM as an events-led marketing services and communications business "is proving successful".
"The growing strength of our Events business - focused particularly on large events, and our strong presence in China and other growth markets - continues to affirm our strategic choices and to demonstrate live media is an increasingly significant component of business to business marketing programmes," he added in a statement.
The company declared a final dividend of 20.5 pence up from 20.0 pence, making a total dividend of 27.2 pence from 26.7 pence a year earlier.
The stock was trading at 723.50 pence Friday, up 23.50 pence or 3.4%, making it one of the biggest gainers on the FTSE 250.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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