12th May 2005 13:30
12th May 2005 Chairman's Statement to the United Business Media plc AGM Profits Broadly In Line, Strategy On Track ‚£300m Special Dividend With Share Consolidation Speaking at the United Business Media annual general meeting today, theChairman, Geoff Unwin said:"2005 has already seen significant changes for UBM, with a steady pipeline -over ‚£60m to date - of earnings enhancing acquisitions, the ‚£383m disposal ofNOP World, the ‚£35m disposal of UBM's shareholding in SDN, a ‚£32m settlementpayment from Granada, and the appointment of a new CEO."David Levin has been enthusiastically taking up the reins of the Group as itsnew CEO - following the departure of Clive Hollick who leaves UBM having madean outstanding contribution in his 31 years at the head of the company."Profits from our continuing operations are broadly in line with the trends weindicated in February, albeit with revenue softening in March and April,partially offset by further cost savings. UBM continues to achieve revenuegrowth in its exhibitions, particularly in Asia, and in its online operations;US news distribution also continues to show solid revenue growth; however printcontinues to face significant challenges, particularly in the classified titlesbut also in display titles."In this changing market, it is all the more important for us to renew ourproduct ranges and evolve our existing products and UBM is moving ahead withour previously announced ‚£5m to ‚£10m programme of incremental new productinvestment.""UBM has bought market leading publishing businesses for around ‚£60m so farthis year - including medical trade press in France, specialised paper industryevents and publications in Asia, specialist licensed trade publications andevents in the UK and leading online developer websites in the US."The ‚£383m NOP World disposal remains on track for completion at the end ofMay, with Hart-Scott-Rodino anti-trust clearances having been received andcertain other clearances still pending. Conditional on completion, UBM intendsto return ‚£300m of the proceeds to shareholders - all of it by way of a specialdividend of approximately 90p per share. In order to maintain comparability ofthe UBM share price and earnings and dividend per share before and after thepayment of the special dividend, the Board intends to seek shareholder approvalto implement a consolidation of UBM's issued ordinary share capital. A circularwill be posted to shareholders with details of the proposed return of funds andto convene the necessary EGM in due course. Subject to the timing of completionof the NOP World disposal and to shareholder approval at the necessary EGM, thespecial dividend and consolidation should be completed by the end of June.Detailed documentation on the special dividend and consolidation process willbe issued following completion of the NOP World sale. Today we are also seekingthe renewal of authority to buyback 10 per cent of our own shares."New CEO David Levin today added:"It's great to be on board and getting stuck in. I'm delighted with thehandover I have received from Clive and Malcolm Wall and have been pleased bythe depth of preparation for the transition from the organisation."I have reorganised the management of the businesses to align the structure ofUBM's management and UBM's cost base with the geographical needs of customersand their marketplaces, as well as to address the issue of performance at UAP.We continue to look for "bolt on" opportunities to consolidate our chosenmarkets and the acquisition of ABI was a good fit with our continuing strategy."UBM is an increasingly focused provider of B2B information services worldwide,its businesses operate across rapidly evolving publishing, events and othermedia platforms, in a wide range of industry sectors. We intend to build on thestrength of these market leading positions and brands and to ensure UBM is evercloser to its customer base."Detailed Notes:Changes to UBM Management StructuresBernard Gray, CEO of CMPi (UK and continental Europe), has now also become CEOof United Advertising Publications UAP (including Exchange & Mart and Dalton'sWeekly). Gary Marshall, CEO of CMP Media, has taken on responsibility for thoseCMPi businesses which operated in the USA (notably the enthusiast Music andEntertainment titles), these have now been brought into CMP Media. CharlesGregson takes on the CEO role at PR Newswire.UBM's next scheduled trading information pointIs its regular pre close season update on 21st June 2005.IFRSUBM will produce its 2005 interim accounts on an IFRS basis - with areconciliation to UK GAAP. In advance of the 2005 interim results UBM willprovide 2004 interims results restated on a comparable IFRS basis. -Ends- For further information please call:Michael Waring United Business Media 020 7921 5031 Colin Browne The Maitland Consultancy 020 7379 5151 Notes to Editors:United Business Media plc (http://www.unitedbusinessmedia.com) is aleading provider of business information services to the technology,healthcare, media, automotive, financial services and property industries. UBMoffers services in news distribution, publishing and events to customers acrossthe globe. Its brands include PR Newswire, the world's leading corporate newsdistribution service and CMP, the B2B media and exhibition group operating inhigh tech, healthcare, property, entertainment, jewellery & fashion in the US,UK, Asia and Europe.This press release includes statements which are not historical facts and areconsidered "forward-looking" within the meaning of Section 27 of the SecuritiesAct of 1933, as amended. These forward-looking statements reflect UBM's currentviews about future events, business and growth strategy and financialperformance. These forward-looking statements are identified by their use ofterms and phrases such as "believe," "expect," "plan," "anticipate," "ontarget" and similar expressions identifying forward-looking statements.Investors should not rely on forward-looking statements because they aresubject to a variety of risks, uncertainties and other factors that could causeactual results to differ materially from UBM's expectations. UBM expressly doesnot undertake any duty to update forward-looking statements. Management doesnot attempt to update forecasts unless conditions materially change.ENDUNITED BUSINESS MEDIA PLCRelated Shares:
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