30th Aug 2007 07:01
Informa PLC30 August 2007 Informa plc Unaudited Interim Report for the Six Months Ended 30 June 2007 • Strong trading across all three divisions (Academic & Scientific, Professional and Commercial) and three business streams (Publishing, PI and Events)• Pro forma constant currency revenue up 10%• Pro forma constant currency adjusted operating profit up 24%• Adjusted operating margin rises to 21.8% with all divisions reporting increases• Dividend up 70% in line with new policy• Adjusted diluted EPS up 17%• Datamonitor acquisition complete• Confident of 2007 outlook Strong Performance Across the Board 2007 2006 Increase Pro forma £m £m % cc (1) % Revenue 532.5 533.7 0 10Operating profit 74.8 60.4 24Adjusted(2) operating profit 116.0 105.1 10 24Profit before tax 87.8 39.1 125Adjusted(3) profit before tax 95.6 83.8 14Profit for period 68.9 29.5 133Adjusted4 profit for period 71.7 61.2 17Basic earnings per share (p) 16.24 6.99 132Diluted earnings per share (p) 16.18 6.96 132Adjusted(4) diluted earnings per share (p) 16.84 14.44 17Dividend per share (p) 5.60 3.30 70Cash conversion(5) 79% 67% 1. Adjusted for material acquisitions and effects of changes in foreign currencyexchange rates. This also adjusts for the reduction in revenue of £18m in 2007from the new 3GSM contract and the impact of the quadrennial IPEX exhibitionwhich contributed £21m to 2006 revenues. The related adjusted operating profitimpact for 3GSM was £nil and for IPEX was £7.7m. 2. Excludes restructuring and reorganisation costs of £nil (2006: £2.9m), andintangible asset amortisation of £41.1m (2006: £41.8m). 3. Excludes restructuring and reorganisation costs of £nil (2006: £2.9m),intangible asset amortisation of £41.1m (2006: £41.8m) and Blackwell's profitsof £33.4m (2006: £nil). 4. Excludes restructuring and reorganisation costs of £nil (2006: £2.9m),intangible asset amortisation of £41.1m (2006: £41.8m), Blackwells' profits of£33.4m (2006: £nil) and related tax of £5.0m (2006: £13.0m). 5. Adjusted cash generated by operations (note 10 of the financial statements)divided by adjusted operating profit. Enquiries: Informa plcPeter Rigby, Chairman Tel: 020 7017 5000David Gilbertson, Chief Executive Tony Foye, Finance DirectorSusanna Kempe, Chief Marketing Officer MaitlandWilliam Clutterbuck Tel: 020 7379 5151 Chairman's and Chief Executive's Report "The need for quality information, and the value people place on it, is growing. We are seeing good demand for our products and services across all formats andare benefiting from additional revenue growth by connecting formats, markets andterritories. This has resulted in a strong first half and we are confident ofanother successful full year for Informa." David Gilbertson, Chief Executive Informa has begun the year strongly. On a pro forma constant currency basis("pro forma"), revenue rose 10% and adjusted operating profit was 24% higher. Profit before tax (PBT) for the period of £87.8m was 125% ahead of the same timelast year, £33.4m of this was from the disposal of Informa's BlackwellPublishing share holdings. Adjusted PBT increased by 14%. All three divisions (Academic & Scientific, Professional and Commercial)translated good pro forma revenue growth into even greater adjusted operatingprofit increases. Informa's adjusted operating profit margin for the first halfof the year is 21.8%, ahead of last half year's 19.7% and 2006 full year 21.1%. The Academic & Scientific division had resilient pro forma revenue growth of 7%,translating into pro forma adjusted operating profit growth of 27%. TheProfessional division had a robust 10% pro forma revenue growth, translatinginto 18% pro forma adjusted operating profit growth and the Commercial divisionhad a growth capturing 14% pro forma revenue increase, translating into 28%higher pro forma adjusted operating profit. The diversity of Informa's product offering across sectors and geographies givesus particular strength. In the first half of this year from our operations in 80countries and hundreds of vertical markets, Informa customers paid to receivepremium content in books, journals, magazines, newspapers, exhibitions, trainingcourses, PI engagements, data feeds, and increasingly through a full range ofelectronic media. Across Informa 95% of all subscription and licence revenue is now digitallydelivered. We have made the investment to ensure that we can take advantage ofthe many opportunities provided by digital delivery: greater customisation,greater speed to market and greater reach. The acquisition of Datamonitor (DM), whose market intelligence is deliveredelectronically, supports this further. We expect to accelerate Datamonitor'salready robust growth through extending its global footprint using Informa'sbroad geographical office network; leveraging Informa's 20 million recordmarketing database and 12,500 event promotion opportunities and connecting keyaccount customers in shared markets. Datamonitor has also strengthened our revenue mix. On an annualised basis withDM as part of the Group then 41% of our revenue now comes from highly resilientsubscription and academic books sales. If we add to that the 40% of our eventsrevenue which comes from our top 200 largest events and the 90% of our PIrevenue which renews annually, we see that three quarters of Informa's revenuemix is visible and renewing. Due to the higher margins of both our publishingrevenues and our leading events this translates to approximately 90% in adjustedoperating profit terms. Current Trading and Outlook Current trading across all divisions and revenue streams is good. We are seeinggood demand for our information across all formats and benefiting fromadditional revenue growth by connecting formats, markets and territories. In Academic & Scientific we continue to benefit from our high subscriptionrenewals and the increase of electronic media. The next set of electronicarchives (Health Sciences; Politics, International Relations and Area Studies;Strategic, Defence and Security Studies) which all have a high drop through havebeen sourced and are beginning pre sales. In the Professional division the PI businesses which have enjoyed double digitgrowth in the first half are being fuelled by the on-going internationalisationof their sales teams and client base. This is expected to provide a strongengine for the second half year also. In Commercial, the extension of our leading brands into all media formats isdriving strong half year growth. Building on the successful event brand,Cityscape, the Cityscape Market Intelligence Service is set to launch in October2007. In Commodities, the World Ethanol event, which will celebrate its 10thanniversary in the second half of the year, has for the first time been producedaccording to the Large Scale Event model and current registrations are fourtimes the same point last year. DatamonitorDatamonitor has had a strong start to the year with organic growth of 22% andtotal revenue growth of 62%. This momentum is continuing well into the secondhalf of the year. Supported by the planned Informa synergies, forecasts for therest of the year are comfortably in line with our expectations. Across Informa, our increased scale is helping improve margins, as individualbusinesses take advantage of shared service centres, new technology developmentsand existing office space to reduce costs. We are confident of another successful full year which meets the Board'sexpectations. Board changesOn 17 July 2007 Tony Foye announced he was stepping down after 20 years incharge of the Group's finances. Tony has been Group Finance Director since themerger of Taylor & Francis and Informa in May 2004. Prior to this he was FinanceDirector of Taylor & Francis Group plc and instrumental in its successfulflotation on the London Stock Exchange in May 1998. Tony will remain in his roleand as a member of the Informa plc board in order to achieve a smooth transitionof responsibilities, which is likely to be until the end of the currentfinancial year. An external search process is now being initiated for hissuccessor. Review by Business Stream PublishingPublishing, at £205.5m accounted for 39% of the first half year revenues. On apro forma basis this represents an increase of 6%. Over half of the revenue,62%, is subscription based. Subscription revenues are split approximately 60 /40 between corporate and academic clients. Had Datamonitor, acquired in July,been part of Informa for the first half of the year, subscription revenues wouldincrease from the current 24% of total revenue to approximately 27% of totalrevenue. The split between corporate and academic markets would be approximately70 / 30. In each of our divisions and markets the successful migration from print basedpublishing to content which is technology enabled has allowed us to add valuethrough functionality, increased comprehensiveness and speed. This has helped usto widen the sales offering and drive incremental yield as organisations readilyaccess more of our information. In the Academic division, the successful launch in 2006 of four electronicsubject based archives, based on the rich authoritative journals content, hascontinued well into first half of 2007. Sales of the first four archives,Education, Business, Management and Economics, Chemistry and Physics, aregrowing well with over $1m in incremental sales for the 2006 period and $4m 2007year-to-date, including nationwide agreements in Germany and Greece. The nextfour archives have just been launched and there are more launches planned forthe second half of the year. Digital versions of academic books, e-books, also play an important part in thedevelopment of the on-line offering. They are sold through aggregators to thelibrary community as part of 'libraries of information' as well as forming partof the overall multi product online delivery of academic content sourced frombooks, journals, reference and archive materials. Large parts of the backcatalogue and all new titles are converted to build this collection which is nowapproaching 15,000 titles. In the Professional division, the good growth in subscription revenues forInforma Professional was driven mainly by online take-up. Expanding from a smallbase of early adopters our law portal, i-law, has grown significantly in thefirst half of 2007. In the Commercial division, Lloyd's MIU, the leader in global maritimeinformation, continued the rollout of the world's largest AIS electronic networkin order to track the movement of the world merchant fleet. Combining this withother intelligence and functionality has enabled increased leverage from theinformation for sale to a wide range of customers. Products in all Informa publishing divisions are now designed to be medianeutral. The venerable title Lloyd's List is a prime example of this. In Junethis year it unveiled a new design as a full-colour compact broadsheet formatwith increased content. Maintaining the quality ethic underpinning it since1734, the redesign was merely the front end of a significant investment in aworld-leading media neutral publishing system. We are now migrating alltransport magazines and newspapers into the system, so that we will have a largedatabase of highly structured XML content to combine with our data drivenproducts and to allow us to re-purpose content across all our titles and developtheir online revenues. We continue to have very little reliance on advertising revenues, they accountfor just 3% of total revenue. Performance ImprovementPerformance Improvement (PI) at £109.7m accounted for 21% of first half yearrevenues. On a pro forma basis this represents an increase of 10%. The PI business is performing well. Communispond, the smallest of the PI brandswhich had a flat 2006, has turned around and is now producing good top line andstrong profit growth. Robbins-Gioia, the programme management specialists with a significantgovernment client base and the largest of the PI businesses, has seen its $4minvestment last year in new solutions development starting to pay-off. Pro formarevenue in the first half year 2007 is 10% ahead of the same point last year andpro forma adjusted operating profit has grown by 14%. Good growth is being achieved throughout PI as the result of the two prongedinvestment approach: developing new intellectual property driven product andexpanding the international sales force. This is enhanced by two related clientdrivers: a demand for proof of results and a need for global best practiceconsistency. Haagen-Dazs, for example, worked with Forum to improve the businessperformance of its retail stores by creating an enhanced customer experience.They needed a partner who could help them deliver consistency of best practiceglobally. Forum worked with them in four major locations - London, France, HongKong and Spain - to achieve: • Same store sales up an average of 13%;• Increased sales per customer by encouraging trading-up/additional purchases;• Top customer satisfaction up 19% (from 55% to 74%);• Employee satisfaction up; staff turnover down; Haagen-Dazs is now expanding the Forum-led programme to all 640 storesworldwide. Informa's decision to buy back some PI Asian franchises in order to drive growthis already beginning to pay off. ESI's acquisition and subsequent integration ofits Asian distributor and successful launch in India has produced top linegrowth in Asia 26% ahead of budget. Investment in the EMEA sales force andcloser partnering with IIR events sister companies in Dubai and South Africa,have contributed to good top line growth of 38% in EMEA. Total ESI non USrevenues are $8m ahead of the same period in 2006. AchieveGlobal's purchase of its Taiwan and Greater Chinese franchise operationis also producing good results. All of Achieve's wholly owned non-US operationshave had a strong start to the year with total revenues increasing by over 88 %.Growth on a pro forma basis of 37% came about as a result of the investment ininternationalising the intellectual property and building a global marketingsupport structure. The rest of the franchise operations are also showing good growth with actualfranchise royalty increased by 18%, despite a reduction in the number offranchise businesses due to acquisition. In the first half of the year, non-US revenues accounted for 17% of total PIrevenues, compared to 10% of revenue produced by IIR prior to the acquisition inJuly 2005. Events Events at £217.3m constituted 40% of first half year revenues. On a pro formabasis this represents an increase of 16%. All regional and vertical markets sawgood growth from a focus on growing and extending large scale events,geo-cloning and capturing the Sponsorship and Exhibition opportunitiesrepresented by client demand for a proven and targeted audience. The geo-cloning of events is continuing well. ICBI, the Finance specialists, hasbeen particularly focussed on taking European flagship events and rolling themout in new geographic locations. Funds Europe, now in it 17th year, is Europe'slargest mutual funds event, attracting over 1400 participants. In April thisyear we successfully launched Funds Asia. Its results exceeded expectations. In the large US conference market, revenues continue to increase by double digitpercentages and produce subscription quality operating margins by focusing ongrowing Large Scale Events domestically and internationally such as the GAIMseries of events for the hedge fund market. GAIMUSA grew through innovation in the form of improved programming content, theuse of the personal electronic delegate finder devices, rapid-fire companypresentations on the exhibit floor and increased networking time and events.Total revenue at £1.6m was 17% up on prior year. Prior year international roll-outs continue to gain momentum. For example, inthe first half of 2007 IIR held the regional version of its GAIM event in theCayman Islands for the second year and grew event revenue by 34% to £0.7m. Informa continues to benefit from the increased requirement of corporatemarketing departments for measurable Return On Investment from access to moretargeted and proven buying audiences. Sponsorship and Exhibition (SpEx)revenues, events' ancillary revenue stream, in the first half of the yeargrew on a pro forma basis by 30% compared to the same period last year. This growth has been consistent in both newer Informa sectors such as Energy andin long-held market leadership positions such as Insurance. Energy conferences were a major success story for the first half of the yearwith significantly increased revenues from both SpEx and record numbers ofdelegates attending the events, most notably the annual London event onKazakhstan in April. The growth in Energy events looks set to continue withincreased focus on alternative supply strategies against a backdrop of sustainedhigh oil prices. The roll-out of the London Insurance Day Summit to Bermuda was also a successwith strong profits in its launch year. A good example of the global geo-cloningstrategy, there was a mere 5% delegate overlap between the core and the regionalevents. This confirms the opportunity to extend the brand further withoutrisking profit dilution of the core flagship event. In the first half of the year Informa also opened new regional events businessesin China and in Mexico. Review by Division Academic & Scientific Academic & Scientific 2007 2006 Inc Pro forma £'m £'m % %RevenueSTM 90.7 86.2 5 6HSS 60.5 52.7 15 10 ------- ------- 151.2 138.9 9 7 ------- ------- Adjusted Operating ProfitSTM 24.7 21.2 16 17HSS 12.7 8.7 45 49 ------- ------- 37.4 29.9 25 27 ------- ------- Adjusted Operating Margin 24.7 21.5 Revenues increased by 9% to £151.2m in the first half year 2007. On a pro formabasis they increased by 7%. Adjusted operating profit increased by 25% to £37.4mand on a pro forma basis by 27%. Acquisitions including Citeline, Librapharm andLEA contributed £10.9m to revenue and £4.5m to adjusted operating profit. The subscription mainstay of the business which accounts for almost half itstotal sales performed strongly in both our Scientific Technical and Medical(STM) and Humanities and Social Sciences (HSS) with renewal rates continuingabove 95%. Non subscription journal revenue has also improved year on year asnew electronic sales models and archive deals are introduced. In the first half of 2007, Informa produced 203 new books in the STM divisionand 968 new HSS titles. Revisions and reprints are increasingly being madeavailable as print on demand (POD) which means that orders are fulfilled bybooks being printed as needed. Innovation and control in the production processenabled us to publish books more quickly and at less cost with first half yearsavings in excess of £1.7m. The STM division saw solid profit growth. Its corporate sales had excellentgrowth across its Pharma business in online subscriptions, particularly forScrip which have grown by 12% year on year and continue to see an upwardtrajectory. The acquisition of Citeline and its Trialtrove Global ClinicalTrials Database at the end of 2006 has been extremely successful and hasincreased our penetration of the largest pharmaceutical companies with all ofthe top 20 Global Pharmaceutical Companies now subscribers to the onlineservice. Connections between Trialtrove and Pharmaprojects, Informa Healthcare'sDrug Development Database are being made and the launch of a combined trials anddrugs service is planned for Q4. Events, which contributed approximately 10% of the division's revenues and ismade up of the legacy life sciences and pharmaceutical event divisions in IBCand IIR and the exhibition Vitafoods, started the year well. The UK Life Sciencebusiness in particular had a good first half with revenues up by 21% andadjusted operating profit by 44% driven largely by a focus on higher qualityevent formats, particularly Large Scale Events, which produced average yield perdelegate significantly above last year and the Informa average. Flagship Large Scale Life Sciences Events such as BioProcess International inthe UK and the US events Clinical Trials Congress, Partnering with Central Labs,Drug Delivery and Partnerships with CROs all showed strong growth of both theprimary delegate revenue stream and the high margin sponsorship and exhibitionrevenues. The Humanities and Social Sciences business which has seen strong revenue growthof 15% is benefiting from the strategic acquisitions made in 2006 and 2007.These have been in core subject areas, including education and the behaviouralsciences where the introduction of established titles and lists has broughtenhanced market share and growth through cross marketing and selling. Marginshave also grown well to 21% from 16.5% at the prior half year, benefiting fromacquisition integration savings and the production cost savings mentionedearlier. Professional Professional 2007 2006 Inc Pro forma £'m £'m % %RevenuePerformance Improvement 109.7 109.9 0 10Financial Data Analysis 31.2 32.6 -4 -3Finance Insurance Law and tax 48.8 40.3 21 20 ------- ------- 189.7 182.8 4 10 ------- ------- Adjusted Operating ProfitPerformance Improvement 15.6 15.6 0 11Financial Data Analysis 8.2 9.1 -10 -2Finance Insurance Law and tax 14.2 9.4 51 46 ------- ------- 38.0 34.1 11 18 ------- ------- Adjusted Operating Margin 20.0 18.7 Revenues increased to £189.7m representing 36% of Informa revenue. This is a 4%increase and a pro forma growth rate of 10%. Demonstrating strong operationalgearing, this revenue growth translates into an adjusted operating profit growthof 11% and 18% on a pro forma basis surpassing last year 2006's half year andfull year adjusted operating profit growth. Acquisitions contributed £3.1m torevenue and £0.8m to adjusted operating profit. Performance Improvement In Performance Improvement, which represents 58% of the revenue of the division,revenue grew on a pro forma basis by 10%. AchieveGlobal, one of the three largest PI brands, is seeing good growth of 17%proforma revenue with a particularly strong contribution from the retail sectorwhere first half year revenues are over 50% ahead of the same period last yearand three of its top clients, Wal-Mart, Office Depot and Coach, all in thisdeveloping sector. With the Datamonitor acquisition, who have a very strongretail presence, we have an opportunity to cross-introduce clients, expandingthe DM footprint in the US and the AchieveGlobal one in the UK. Omega Performance, a mid sized PI business specialising in the FinancialServices sector, continued its strong growth and international rollout. In thefirst half of 2007, Omega Performance opened offices in China, Greece, andNigeria and expanded operations to Malaysia and Thailand. This expandedfootprint, as well as continued focus in Omega's traditional geographies,enabled Omega to grow revenues nearly 16% over the same period in 2006 and todeliver an operating profit almost 80% ahead of last year. Continued investment in new product development and overseas sales forceexpansion across PI has meant that adjusted operating profit growth hasincreased on a pro forma basis at 11% just ahead of revenue growth, with much ofthe drop through from existing client revenue growth being re-invested into thebusiness particular in its overseas sales force as well as intellectual propertydevelopment. Finance Insurance Law and Tax The strongest growth within the division came from the Finance, Insurance, Lawand Tax (FILT) unit which includes Informa Professional a market facing unit andthe legacy IIR specialist Finance events businesses in both the UK and the US.With revenues at £48.8m and adjusted operating profit at £14.2m representingover 37% of the division's profits FILT had pro forma revenue growth of 20% andadjusted operating profit growth of 46% demonstrating the same strong gearing asfull year 2006. Informa Professional with a particularly strong contribution from its legalportfolio, which includes the on-line data service i-law.com increased adjustedoperating profit by 24%. Increases in subscription and licence fee revenuehelped the business grow its margin from 17% in the same period in 2006 to 21%. UK Finance which includes the market leader ICBI, saw strong revenue growth of32% which translated into 48% operating growth, enhanced by £2m from this yearholding one flagship event in June rather than July. Seven of the top 25 globalevents in the first half are in this portfolio and six of these were in lastyear's top 25. Delegate revenue, the primary revenue stream, grew by 20% forthese events combining good growth in the number of delegates and delegateyield. Sponsorship and Exhibition revenue also grew well, contributing 36% oftotal revenue for these must attend events and helping drive strong margins. Financial Data Analysis Financial Data Analysis was the weakest part of the division. Informa Global Markets which in 2006 experienced a slight decline in pro formarevenue due primarily to consolidation in the banking community, continued tosee some revenue attrition whilst defending 30%+ operating profit margins.Increasing monthly revenue run rates are now suggesting a more encouragingoutlook for the rest of the year and in EMEA revenue year to date has grown over7% from Q306. Informa Research Services (providing competitive intelligence, market research,and mystery shopping services to the financial industry) had a disappointingstart to the year. The core rate information business performed well however themystery shopping and full service business experienced some weakness. Informa Investment Solutions (IIS) conversely, with its strong wealth managementsolution set, had another good set of results successfully integratingInvestment Scorecard and thereby growing revenues by 41%. The acquisition hasgiven Informa Investment Solutions greater access to trust banks while expandingthe performance measurement and client reporting offering of the legacy IISbusiness. iMoneyNet, the publishers of the Money Fund Report also saw revenue growth inthe first half of the year after the successful launch last year of their MoneyFund Analyser, a browser-based analytical tool designed to help US-based mutualfund companies, banks and insurance companies meet their business goals. Commercial Commercial 2007 2006 Inc Pro forma £'m £'m % %RevenueRegional events 123.6 134.3 -8 12Telecoms & Media 32.9 45.5 -28 23Maritime & Commodities 35.1 32.3 9 11 ------- ------- 191.6 212.1 -10 14 ------- ------- Adjusted Operating ProfitRegional events 22.1 25.5 -14 28Telecoms & Media 13.8 12.1 14 23Maritime & Commodities 4.7 3.4 38 42 ------- ------- 40.6 41.0 -1 28 ------- ------- Adjusted Operating Margin 21.2 19.3 Revenues increased by 14% on a pro forma basis to £191.6m representing 35% oftotal company revenue. Revenue was reduced due to the £39.0m aggregate impactfrom the absence of the quadrennial IPEX exhibition which was held in 2006 andthe changed relationship for the 3GSM World Congress under which profits ratherthan revenues are shared with the trade association. This arrangement lastsuntil end of 2009. The impact of this change is to reduce turnover by £18m andhas a small impact on adjusted operating profits. The IPEX event in 2006contributed £21m of turnover and £7.7m of operating profit. Adjusted operating profit at £40.6m was flat despite the revenue shortfall,demonstrating again the good gearing of this division and its ability to protectprofit. On a pro forma basis adjusted operating profit grew by a strong 28%. Regional Events The bulk of revenue in this division at 84% comes from events. Regional Eventshad a good period with a 12% pro forma revenue increase translating into 28% proforma adjusted operating profit growth. The Dubai events business one of the largest contributors to Regional Eventswith 23% of revenue and 42% of adjusted operating profit, had a strong start tothe year with 46% pro forma revenue growth. Flagship events such as Arab Health and Middle East Electricity grew revenues by19% and 22% respectively and geo-cloned launches such as Cityscape Abu Dhabibeat budgeted revenues and had above average gross profit margins. Held for thefirst time this year, Cityscape Abu Dhabi welcomed 15,670 participants from 71countries. In line with Informa's strategy to be media neutral and extend allbrands through all media formats, we launched Cityscape Magazine at thebeginning of the year. It was profitable from the first issue. The German and Dutch conference businesses which between them represent over 37%of both revenue and adjusted operating profit of the Regional Events' portfoliohad a good start to the year with pro forma revenue growth of 10.5% translatingwell into a 20.2% operating profit growth. June was a particularly strong monthwith a profit of £2.9m, twice what was achieved in the same month last year whenGerman events were impacted by the distraction of the World Cup. The smaller Regional Events businesses are, with the exception of Italy whichtypically relies on a strong Q4, trading very well. The focus on best practiceprogramme development, marketing KPIs, cost control and productivity is payingoff. Their first half combined turnover is some 16% ahead of last year and theiraggregate adjusted operating profit shows a 38% advance on last year and 46%growth on a pro forma basis. Within those numbers, the largest business -- Spain-- is 35% up on last year; Sweden has reversed a loss into a record first halfprofit of £0.44m; Brazil and Poland have both doubled their first half 2006profits and South Africa is three and a half times higher. Telecoms and Media Telecoms and Media which as a market facing unit combines publishing and eventsrevenues enjoyed 23% pro forma revenue growth to reach £32.9m. Revenues were 28%lower than in 2006 due to the change in the relationship with a telecoms tradeassociation over the 3GSM World Congress. Adjusted operating profit thoughincreased by 14% and 23% on a pro forma basis due to an increased focus on costcontrol. The GSM World Series of events is growing strongly and the training businesscontinues to roll out its successful MiniMBA series. The acquisition of Junction Group, which has delivered strong growth in its coreIPTV Event series in the first half, will strengthen and broaden our position inthe converging content and technology markets through the year. Maritime and Commodities Maritime and Commodities grew revenues by 9% and on a pro forma basis by 11%with a particularly strong performance from Commodities. On an adjustedoperating profit basis, Maritime and Commodities grew by 38% and 42% on a proforma basis. Commodities had a particularly good start to the year with 43.5% adjustedoperating growth on a pro forma basis. Subscription and event revenues areparticularly strong as this market facing units repurposes its content andleverages its brands across multiple media. The Maritime business continues tobenefit from strong underlying trading conditions in this sector. Financial Review Informa's revenue on a pro forma basis was up 10% for the first 6 monthscompared to the same period in 2006. Adjusted operating profit on the same proforma basis was up 24%. Revenue at £532.5m was flat compared to 2006 and despitethe adverse impact of currency, adjusted operating profit was up 10% withadjusted operating margins increasing by over 2 percentage points to 21.8% from19.7% in 2006. Recent acquisitions traded strongly and contributed well to the first halfyear's results, particularly Lawrence Erlbaum Associates ("LEA" acquiredNovember 2006) which contributed £5.9m to revenue and £2.3m to adjustedoperating profits and CiteLine (Acquired November 2006) which contributed £3.1mto revenue and £1.6m to adjusted operating profits. Other acquisitions(including Librapharm acquired July 2006) and Investment Scorecard acquired inApril 2007 contributed £5.1m to turnover and £1.6 to adjusted operating profits. Revenue In the six months ended 30 June 2007 we recorded revenue of £532.5m which wasflat compared to £533.7m in the same period a year earlier. These results wereaffected by the recent weakness in the US $ which reduced reported sterlingrevenue by £27m. Also affecting the revenue was the change to the relationshipwith the 3GSMA (which reduced our revenue from this event by £18m compared tosame period in 2006) and the Quadrennial IPEX exhibition last run in 2006 whichaccounted for £21m of revenue. As mentioned earlier acquisitions offset theseimpacts contributing £14m to revenues in the period. Operating CostsOperating costs overall decreased by 3% (£15.7m) to £457.7m due mainly to thecurrency impact from a weaker US $. Raw material costs dropped by 12% due to theUS dollar exchange rate, the change of the relationship with the GSMA, andsavings initiatives within the Academic & Scientific divison. Employee costsincreased 4% reflecting investment in new staff (FTEs grew to 8,200 from 7,600in 2006) to support the strong pro forma growth in the business. Amortisationwas flat with Intangible asset growth associated with acquisition activityoffset by currency effects with around 50% of all Group intangible fixed assetsdollar denominated. Operating profits increased by 24% (£14.4m) to £74.8m from £60.4m in 2006. Finance Costs Finance costs, which consist principally of interest costs net of interestreceivable decreased by 4% to £20.4m from £21.3m. This decrease is due to over£150m spent on acquisitions since 1st July 2006 offset by strong cash flow and£38.9m received from the sale of our investment in Blackwell Publishing Group,the profit on which is shown in the £33.4m item on the face of the consolidatedincome statement. Acquisitions As mentioned above the Group spent over £150m since 1st July 2006 onacquisitions and related deferred consideration with further details given innote 11. As well as matching the Group's business criteria and strategy thegroup continues to apply its rigorous financial investment criteria which arethat every acquisition should pay back its initial investment within sevenyears, be earnings enhancing it in its first full year and associated cash flowsmust produce a positive Net Present Value within ten years when discounted backat the Groups weighted average cost of capital plus a suitable premium for risk. On 13th July 2007 the Group announced its second largest acquisition havingdeclared its offer for Datamonitor plc unconditional. Datamonitor will beconsolidated from this date. Just prior to its acquisition and not included inthese financial statements Datamonitor recorded a strong unaudited financialperformance in the six months to 30th July 07 with turnover up 62% to £53.3m andadjusted operating profits up 51% to £11.9m. Taxation Across the Group tax has been provided for at an adjusted tax rate of 25.0%(2006: 27.0%). This adjusted tax rate benefits from profits generated in low taxjurisdictions including Dubai. The effective group tax charge was 21.5% (2006: 24.5%). The tax on theexceptional gain for the disposal of the Blackwell investment is relatively lowand reduces the effective tax rate when compared to the 2006 half year. EPS Basic and diluted EPS were up 132% compared with 2006. Adjusted Results Adjusted operating profit, which is shown in note 4 of these results, iscalculated after removing certain items not relating to the pro forma tradingoperations of the group. This adjusted operating profit increased by 10% to£116.0m from £105.6m. Adjusted profit before tax increased 14% to £95.6m from £83.8m and adjustedprofit for the period increased 17% to £71.7m from £61.2m. Adjusted Diluted EPS after deducting tax at 25.0% (2005: 27.0%) and minorityinterests was up 17% to 16.9p from 14.4p. The board believes these adjusted operational figures provide additionalinformation to explain the pro forma performance and associated trends of thegroup. Further details are given in note 4 of the results. Dividend The Board has reviewed the Group's dividend policy and given the excellent cashflow characteristics of the business and the resilience of our revenue andprofit streams we have decided to increase our dividend payout ratio. This willbe achieved by reducing our cover so that adjusted diluted earnings per sharefor the full year are in a range of 2.0 to 2.5 times the dividend. In line with this new policy and in recognition of the continued good tradingprospects, the Board has recommended an interim dividend of 5.6p (2006 3.3p),this represents an increase of 70% on the 2006 equivalent. The dividend will bepayable on 5th October 2007 to ordinary shareholders registered as of the closeof business on 7th September, 2007. Balance sheet Goodwill increased to £1,126.9m from £1,124.5m principally with additions fromthe acquisitions made during the period being offset by currency movements asnearly 50% of the Goodwill assets are denominated in US$. Other intangible assets decreased to £916.1m from £921.1m due to acquisitions inthe period offset by the normal amortisation charge which came to £41.1m andexchange rate effects on US dollar denominated assets. Trade and other receivables rose £18.9m to £211.9m from £193.0m due toacquisitions in the period and due to acquisitions and normal trading variances. Net debt reduced by £18.0m to £720.4m from £738.4m compared with 31 December2006, reflecting inter alia operational cash inflows of £94.3m and disposals ofassets of £38.9m offset by interest, tax, dividends and capital expendituretogether with subsidiary and business acquisitions. In turn due to the structureof the Group's debt which is held in sterling, Euros and US dollars, these netincreases are offset by favorable exchange impacts of £7.6m. In support of the Datamonitor acquisition the group has put in place a new£1.45bn multicurrency 5 year bank loan facility. The Group has also entered intointerest rate hedge agreements to the extent that 75% of the current expectedinterest exposure is effectively covered at fixed rates for the next 2 years.This means that based on current interest rates and current gearing the Groupexpects to pay a blended interest rate on its debt of around 6.5% pa. Given the strong cash flow of the Group, its indebtedness expressed as a ratioof net debt to adjusted EBITDA is expected to drop below 3.75 times by the endof December 2008. Cash conversion (expressed as adjusted cash generated by operations as apercentage of adjusted operating profit, note 10 of the results) was 79% (200667%). The inclusion of Datamonitor, which generated in excess of 125% cashconversion in its last two financial years, will increase Informa's cashconversion rates still further.The decrease in the revaluation reserve of £26.2m reflects the disposal of theGroup's investment in Blackwell Publishing Ltd. The increase in the hedging and translation reserve of £12.9m relates to the netcurrency impact from retranslating assets held in foreign currencies(principally intangible fixed assets and goodwill) offset by the conversion ofliabilities (principally loans) also held in those same currencies. Deferred income at £172.6m was up 6% compared to the same period in 2006 using aconsistent US$ exchange rate. Informa gross defined pension liabilities disclosed under "retirement benefitobligations" have reduced by £5.2m compared with 31 December 2006 to £6.0m duemainly to actuarial gains of £4.9m. Independent Review Report to Informa plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 June 2007 which comprise the Consolidated IncomeStatement, the Consolidated Statement of Recognised Income and Expense, theConsolidated Balance Sheet, the Consolidated Cash Flow Statement and relatednotes 1 to 12. We have read the other information contained in the InterimReport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the Company in accordance with Bulletin 1999/4issued by the Auditing Practices Board. Our work has been undertaken so that wemight state to the Company those matters we are required to state to them in anindependent review report and for no other purpose. To the fullest extentpermitted by law, we do not accept or assume responsibility to anyone other thanthe Company, for our review work, for this report, or for the conclusions wehave formed. Directors' responsibilities The Interim Report, including the financial information contained therein, isthe responsibility of, and has been approved by, the Directors. The Directorsare responsible for preparing the Interim Report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures are consistent withthose applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with the guidance contained in Bulletin1999/4 issued by the Auditing Practices Board for use in the United Kingdom. Areview consists principally of making enquiries of group management and applyinganalytical procedures to the financial information and underlying financial dataand, based thereon, assessing whether the accounting policies and presentationhave been consistently applied unless otherwise disclosed. A review excludesaudit procedures such as tests of controls and verification of assets,liabilities and transactions. It is substantially less in scope than an auditperformed in accordance with International Standards on Auditing (UK and Ireland) and therefore provides a lower level of assurance than an audit. Accordingly,we do not express an audit opinion on the financial information. Review conclusionOn the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2007. Deloitte & Touche LLPChartered AccountantsReading30 August 2007 Notes: A review does not provide assurance on the maintenance and integrity ofthe website, including controls used to achieve this, and in particular onwhether any changes may have occurred to the financial information since firstpublished. These matters are the responsibility of the Directors but no controlprocedures can provide absolute assurance in this area. Legislation in the United Kingdom governing the preparation and dissemination offinancial information differs from legislation in other jurisdictions. Consolidated Income StatementFor the Six Months Ended 30 June 2007 - Unaudited 6 months 6 months 12 months ended ended ended 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000 Revenue 3 532,500 533,740 1,039,142Change in inventories of finishedgoods (2,060) 4,231 2,513and work in progressRaw materials and consumables used (169,874) (193,401) (349,930)Employee benefit expense (157,631) (150,910) (297,248)Depreciation expense (4,428) (4,258) (9,113)Amortisation of intangible fixed (43,376) (43,690) (86,656)assetsImpairment of goodwill - - (515)Other expenses (80,283) (85,348) (169,897) ------- -------- --------Operating profit 3 74,848 60,364 128,296Non-operating income and expense - 88 -Profit / (loss) on disposal ofavailable 33,365 - (812)for sale investmentFinance costs (22,768) (22,984) (45,654)Investment income 2,370 1,675 4,670 ------- -------- --------Profit before tax 87,815 39,143 86,500Tax charge 5 (18,946) (9,638) (18,653) ------- -------- --------Profit for the period 68,869 29,505 67,847 ------- -------- --------Attributable to:- Equity holders of the parent 9 68,786 29,439 67,368- Minority interests 83 66 479 ------- -------- --------Earnings per share 8- Basic (p) 16.24 6.99 15.98- Diluted (p) 16.18 6.96 15.91 ------- -------- -------- Consolidated Statement of Recognised Income and ExpenseFor the Six Months Ended 30 June 2007 - Unaudited 6 months 6 months 12 months Ended Ended Ended 30 June 30 June 31 December 2007 2006 2006 £'000 £'000 £'000 Gains on cash flow hedges 4,599 7,114 4,800Loss on translation of foreign operations (14,285) (17,781) (62,590)Actuarial gains on defined benefit pensionschemes 4,939 6,718 6,817Tax on items taken directly to equity (2,862) (3,475) (8,871)Revaluation of available for sale investment - - 33,390 ------- ------ --------Net loss recognised directly in equity (7,609) (7,424) (26,454)Transferred to profit or loss on cash flowhedges (1,878) (621) (2,572)Profit for the period 68,869 29,505 67,847 ------- ------ --------Total recognised income and expense for theperiod 59,382 21,460 38,821 ------- ------ --------Attributable to:- Equity holders of the parent 59,299 21,394 38,342- Minority interests 83 66 479 ------- ------ -------- Consolidated Balance SheetAs at 30 June 2007 - Unaudited 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000ASSETSNon-current assetsGoodwill 1,126,951 1,122,458 1,124,529Other intangible assets 916,109 900,388 921,229Property and equipment 23,053 25,274 23,143Available for sale investments 1,012 6,566 1,012Deferred tax assets 19,808 8,479 19,900Derivative financial instruments 10,038 - 6,339 ---------- ---------- ---------- 2,096,971 2,063,165 2,096,152 ---------- ---------- ----------Current assetsInventory 31,574 35,849 33,601Available for sale investments - - 38,943Trade and other receivables 211,862 182,815 192,987Cash and cash equivalents 2,635 6,672 19,478Derivative financial instruments 775 10,010 1,357 ---------- ---------- ---------- 246,846 235,346 286,366 ---------- ---------- ----------Non-current assets classified asheld 2,247 4,574 2,247 ---------- ---------- ----------Total assets 2,346,064 2,303,085 2,384,765 ---------- ---------- ---------- EQUITY AND LIABILITIESCapital and reserves 9Called up share capital 42,455 42,236 42,327Share premium account 504,779 499,026 501,310Reserve for shares to be issued 3,848 1,903 2,803Merger reserve 496,400 496,400 496,400Other reserve 37,398 37,398 37,398ESOP trust shares (1,684) (3,334) (3,332)Revaluation reserve - - 26,190Hedging and translation reserve (72,898) (12,340) (59,954)Retained losses (77,760) (136,229) (111,742) ---------- ---------- ----------Equity attributable to equityholders 932,538 925,060 931,400of the parentMinority interests 166 176 589 ---------- ---------- ----------Total equity 932,704 925,236 931,989 ---------- ---------- ----------Non-current liabilitiesLong-term borrowings 617,373 689,147 654,841Deferred tax liabilities 238,317 233,626 244,320Retirement benefit obligation 6,038 11,186 11,219Provisions 11,147 2,212 11,769Trade and other payables 4,563 3,858 3,293 ---------- ---------- ---------- 877,438 940,029 925,442 ---------- ---------- ----------Current liabilitiesShort-term borrowings 105,606 59,770 103,033Current tax liabilities 96,200 64,267 75,227Provisions 726 3,467 1,558Trade and other payables 160,734 144,712 166,144Deferred income 172,656 165,604 181,372 ---------- ---------- ---------- 535,922 437,820 527,334 ---------- ---------- ----------Total liabilities 1,413,360 1,377,849 1,452,776 ---------- ---------- ----------Total equity and liabilities 2,346,064 2,303,085 2,384,765 ---------- ---------- ---------- The Board of Directors approved this Interim Report on 30 August 2007. Consolidated Cash Flow StatementFor the Six Months Ended 30 June 2007 - Unaudited 6 months 6 months 12 months ended ended ended 30 June 30 June 31 December 2007 2006 2006 Note £'000 £'000 £'000Operating activitiesCash generated by operations 10 94,254 67,187 219,358Income taxes paid (11,034) (9,095) (32,466)Interest element of finance leasepayments - (2) -Interest paid (19,897) (19,069) (42,845) ------- ------- --------Net cash from operating activities 63,323 39,021 144,047 ------- ------- --------Investing activitiesInvestment income 2,370 1,675 4,670Proceeds on disposal of property,equipment and non-current assetsclassified as held for sale 72 49 2,996Purchases of intangible software (11,338) (2,704) (13,936)assetsPurchases of property and equipment (4,120) (7,351) (9,705)Disposal of available for saleinvestment 38,893 - -Acquisition of subsidiaries andbusinesses 11 (43,958) (29,784) (136,207) ------- ------- --------Net cash used in investing activities (18,081) (38,115) (152,182) ------- ------- --------Financing activitiesDividends paid 7 (37,759) (25,275) (39,160)Repayments of borrowings (201,785) (146,615) (352,185)New bank loans raised 173,986 157,590 397,514Repayments of obligations underfinance leases - (28) (28)Proceeds from the issue of sharecapital 3,592 2,284 4,659 ------- ------- --------Net cash (used in) / from financingactivities (61,966) (12,044) 10,800 ------- ------- --------Net (decrease) / increase in cash andcash equivalents 10 (16,724) (11,138) 2,665Cash and cash equivalents atbeginning of period 18,750 16,085 16,085 ------- ------- --------Cash and cash equivalents at end ofperiod net of overdrafts 10 2,026 4,947 18,750 ------- ------- -------- Notes to the Unaudited Interim StatementsFor the Six Months Ended 30 June 2007 1 General information Informa plc is a company incorporated in the United Kingdom. The unauditedconsolidated interim financial statements as at 30 June 2007 and for the sixmonths then ended comprise those of the Company and its subsidiaries and itsinterests in associates and jointly controlled entities (together referred to asthe "Group"). The information for the year ended 31 December 2006 does not constitutestatutory accounts as defined in section 240 of the Companies Act 1985. A copyof the statutory accounts for that year has been delivered to the Registrar ofCompanies. The Auditors' Report on those accounts was not qualified and did notcontain statements under section 237(2) or (3) of the Companies Act 1985. Theconsolidated financial statements of the Group as at, and for the year ended, 31December 2006 are available upon request from the Company's registered office atMortimer House, 37-41 Mortimer Street, London, W1T 3JH or at www.informa.com. 2 Accounting policies and estimates The consolidated interim financial statements have been prepared usingaccounting policies consistent with International Financial Reporting Standards(IFRS). The Group has chosen not to apply IAS 34 "Interim Financial Reporting"in the preparation of these consolidated interim financial statements. The accounting policies applied by the Group in the consolidated interimfinancial statements are the same as those applied by the Group in itsconsolidated financial statements for the year ended 31 December 2006. The preparation of consolidated interim financial statements requires managementto make judgements, estimates and assumptions that affect the application ofaccounting policies and the reported amounts of assets and liabilities, incomeand expense. Actual results may differ from these estimates. In preparing these consolidated interim financial statements, the significantjudgements made by management in applying the Group's accounting policies andthe key sources of estimation uncertainty were the same as those that wereapplied to the consolidated financial statements as at and for the year ended 31December 2006. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 3 Business Segments For management purposes, the Group is currently organised into three operatingdivisions, Academic & Scientific, Professional and Commercial. These divisionsare the basis on which the Group reports its primary segment information. Analysis by market sector Revenue Operating profit 6 months 6 months 12 months 6 months 6 months 12 months 2007 2006 2006 2007 2006 2006 £'000 £'000 £'000 £'000 £'000 £'000 Academic & Scientific DivisionScientific,Technical &Medical 90,682 86,112 178,738 15,435 13,085 31,922Humanities &SocialSciences 60,525 52,737 116,511 7,917 5,430 15,906 ------- ------- ------- ------- ------- ------- 151,207 138,849 295,249 23,352 18,515 47,828 Professional DivisionPerformanceImprovement 109,736 109,925 225,794 7,166 4,414 17,709FinancialData 31,241 32,617 63,641 6,899 7,326 15,823AnalysisFinance,Insurance,Law 48,789 40,276 83,287 9,907 4,789 12,615& Tax ------- ------- ------- ------- ------- ------- 189,766 182,818 372,722 23,972 16,529 46,147 Commercial DivisionRegionalEvents 123,537 134,262 241,045 9,726 11,144 12,525Telecoms &Media 32,942 45,528 64,736 13,066 10,942 14,542Maritime &Commodities 35,048 32,283 65,390 4,732 3,234 7,254 ------- ------- ------- ------- ------- ------- 191,527 212,073 371,171 27,524 25,320 34,321 ------- ------- ------- ------- ------- ------- 532,500 533,740 1,039,142 74,848 60,364 128,296 ------- ------- ------- ------- ------- ------- Adjusted operating profit 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Academic & Scientific DivisionScientific,Technical &Medical 24,698 21,164 50,618Humanities &SocialSciences 12,737 8,708 26,936 ------- ------- ------- ------- ------- ------- 37,435 29,872 77,554Professional DivisionPerformanceImprovement 15,648 15,631 34,726FinancialData 8,184 9,128 19,064AnalysisFinance,Insurance,Law 14,151 9,382 22,012& Tax ------- ------- ------- ------- ------- ------- 37,983 34,141 75,802Commercial DivisionRegionalEvents 22,044 25,532 42,280Telecoms &Media 13,770 12,106 16,151Maritime &Commodities 4,733 3,418 7,304 ------- ------- ------- ------- ------- ------- 40,547 41,056 65,735 ------- ------- ------- ------- ------- -------Adjustedoperatingprofit (Note4) 115,965 105,069 219,091 ------- ------- ------- ------- ------- ------- Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 4 Adjusted Figures 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Reconciliation of operating profit to adjustedoperating profit:Operating profit 74,848 60,364 128,296 Adjusting operating profit items ------- -------- --------Restructuring and reorganisation costs1 - 2,863 7,203Intangible asset amortisation2 41,117 41,842 83,077Impairment of goodwill - - 515 ------- -------- --------Adjusting operating profit items 41,117 44,705 90,795 ------- -------- --------Adjusted operating profit 115,965 105,069 219,091 ------- -------- --------Reconciliation of statutory profit before taxto adjusted profit before tax: Profit before tax 87,815 39,143 86,500 ------- -------- --------Adjusting operating profit items 41,117 44,705 90,795 (Profit) / loss on disposal of available forsale investment (33,365) - 812 ------- -------- --------Adjusting profit before tax items 7,752 44,705 91,607 ------- -------- --------Adjusted profit before tax 95,567 83,848 178,107 ------- -------- --------Reconciliation of profit for the period toadjusted profit for the period: Profit for the period 68,869 29,505 67,847 ------- -------- --------Adjusted profit before tax items 7,752 44,705 91,607Attributable tax expense on adjusting items (4,954) (13,034) (27,301) ------- -------- --------Adjusting profit for the period items 2,798 31,671 64,306 ------- -------- --------Adjusted profit for the period 71,667 61,176 132,153 ------- -------- -------- 1 Restructuring and reorganisation costs for the six months ended 30 June 2006 of £2,863,000 relate to acquisition integration. Restructuring and reorganisation costs for the twelve months ended 31 December 2006 of £7,203,000 comprises of reorganisation costs of £3,672,000, redundancy costs of £2,467,000and vacant property provisions of £1,064,000. 2 Excludes software amortisation. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 5 Tax charge 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Current tax:United Kingdom corporation tax 22,851 9,922 20,555Foreign tax 9,111 5,922 22,925 ------- ------- ------- 31,962 15,844 43,480Deferred tax:Current year (13,016) (6,206) (24,827) ------- ------- ------- 18,946 9,638 18,653 ------- ------- ------- UK corporation tax is calculated at 30 per cent (2006: 30 per cent) of theestimated assessable profit for the year. Taxation for other jurisdictions iscalculated at the rates prevailing in the relevant jurisdictions. A reduction in the UK tax rate to 28% (from 30%) was substantively enacted at 30June 2007. As a result all UK deferred tax balances have been restated at 28%.The reduction in the rate will apply from 1 April 2008 and will therefore impactthe current tax charge for the year to 31 December 2008. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 6 Joint ventures The Group has a 50% interest in one joint venture (2006: two) and includesresults from these as follows: 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Income 342 770 1,717Expenses (246) (739) (1,486) ------- ------- -------Operating profit 96 31 231 ------- ------- ------- 7 Dividends 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Amounts recognised as distributions to equityholders in the period:Final dividend for the year ended 31December 2005 of 6.00p per share - 25,275 25,275Interim dividend for the year ended 31December 2006 of 3.30p per share - - 13,885Final dividend for the year ended 31December 2006 of 8.90p per share 37,759 - - -------- -------- -------- 37,759 25,275 39,160 -------- -------- -------- The proposed interim dividend for the six months ended 30 June 2007 of 5.60pence per share was approved by the Board on 30 August 2007 and has not beenincluded as a liability as at 30 June 2007. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 8 Earnings per share Basic The basic earnings per share calculation is based on a profit attributable toequity shareholders of the parent of £68,786,000 (2006 profit: £29,439,000 sixmonths and £67,368,000 twelve months). This profit on ordinary activities aftertaxation is divided by the weighted average number of shares in issue (lessthose non-vested shares held by employee share ownership trusts) which is423,518,487 (2006: 421,235,091 six months and 421,619,174 twelve months). Diluted The diluted earnings per share calculation is based on the basic earnings pershare calculation above except that the weighted average number of sharesincludes all potentially dilutive options granted by the Balance Sheet date asif those options had been exercised on the first day of the accounting period orthe date of the grant, if later, giving a weighted average of 425,130,597 (2006:423,270,461 six months and 423,346,817 twelve months). The table below sets out the adjustment in respect of diluted potential ordinaryshares: 6 months 6 months 12 months 2007 2006 2006Weighted average number of sharesused in basic earnings per sharecalculation 423,518,487 421,235,091 421,619,174Effect of dilutive share options 1,612,110 2,035,370 1,727,643 ---------- ----------- -----------Weighted average number of sharesused in diluted earnings per sharecalculation 425,130,597 423,270,461 423,346,817 ----------- ----------- ----------- Adjusted earnings per shareThe basic and diluted adjusted earnings per share calculations have been made toallow shareholders to gain a further understanding of the trading performance ofthe Group. They are based on the basic and diluted earnings per sharecalculations above except that profits are based on continuing operationsattributable to equity shareholders and are adjusted for items that are notperceived by management to be part of the underlying trends in the business andthe tax effect on those adjusting items as follows: 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Profit for the period 68,869 29,505 67,847Minority interests (83) (66) (479)Adjusting items net of attributable taxation(Note 4) 2,798 31,671 64,306 -------- -------- --------Adjusted profit for the period attributableto equity shareholders 71,584 61,110 131,674 -------- -------- -------- Earnings per share:- Adjusted basic (p) 16.90 14.51 31.23- Adjusted diluted (p) 16.84 14.44 31.10 -------- -------- -------- Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 9 Capital and Reserves Called Reserve up Share for shares ESOP Hedging and share premium to be Merger Other trust Revaluation translation Retained capital account issued reserve reserve shares Reserve reserve losses £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 1 January2006 42,152 496,826 1,124 496,400 37,398 (3,334) - 408 (145,096) Profit forthe periodattributableto equityholders of - - - - - - - - 29,439the parent Actuarialgain on definedbenefit - - - - - - - - 6,718pension scheme Tax on itemstaken directly - - - - - - - (1,460) (2,015)to equity Exchangedifferenceson translationof foreign - - - - - - - (17,781) -operations Fair valuegains on cash - - - - - - - 7,114 -flow hedges Transfer toincome - - - - - - - (621) - Dividends toshareholders(note 7) - - - - - - - - (25,275) Share awardexpense - - 779 - - - - - - Optionsexercised 84 - - - - - - - - Premiumarising onoptionsexercisedduring - 2,200 - - - - - - -period ----- ------ ------ ------ ------ ------ ------ ------ ------ At 30 June2006 42,236 499,026 1,903 496,400 37,398 (3,334) - (12,340) (136,229) Profit forthe periodattributableto equityholders of - - - - - - - - 37,929the parent Actuarialgain on definedbenefit - - - - - - - - 99pension scheme Tax on itemstaken directly - - - - - - (7,200) 1,460 344to equity Exchangedifferenceson translationof foreign - - - - - - - (44,809) -operations Fair valueloss on cashflow hedges - - - - - - - (2,314) - Transfer toincome - - - - - - - (1,951) - Dividends toshareholders(note 7) - - - - - - - - (13,885) Share awardexpense - - 902 - - - - - - Optionsexercised 91 - (2) - - 2 - - - Premiumarising onoptions exercisedduring period - 2,284 - - - - - - - Revaluationof availablefor sale - - - - - 33,390 - -investment ----- ------ ------ ------ ------ ------ ------ ------ ------ At 1 January2007 42,327 501,310 2,803 496,400 37,398 (3,332) 26,190 (59,954) (111,742) Profit forthe periodattributableto equityholders of - - - - - - - - 68,786the parent Actuarialgain on definedbenefit - - - - - - - - 4,939pension scheme Tax on itemstaken directly - - - - - - 7,200 (1,380) (1,482)to equity Exchangedifferenceson translationof foreign - - - - - - - (14,285) -operations Fair valuegains on cash - - - - - - - 4,599 -flow hedges Transfer toincome - - - - - - - (1,878) - Dividends toshareholders(note 7) - - - - - - - - (37,759) Share awardexpense - - 1,045 - - - - - - Optionsexercised 128 - - - - 1,648 - - (502) Premiumarising onoptions exercisedduring period - 3,469 - - - - - - - Sale ofavailablefor sale - - - - - - (33,390) - -investment ----- ------ ------ ------ ------ ------ ------ ------ ------ At 30 June2007 42,455 504,779 3,848 496,400 37,398 (1,684) - (72,898) (77,760) ----- ------ ------ ------ ------ ------ ------ ------ ------ As at 30 June 2007 the Informa Employee Share Trust held 302,978 (2006: 632,775at 30 June 2006 and 618,718 at 31 December 2006) ordinary shares in the Companyat a cost of £1,740,000 (2006: £3,641,000 at 30 June 2006 and £3,639,000 at 31December 2006) and a market value of £1,689,000 (2006: £2,729,000 at 30 June2006 and £3,694,000 at 31 December 2006). Informa Quest Ltd held 106,495 (2006:111,455 at 30 June 2006 and 106,495 at 31 December 2006) ordinary shares at abook cost of £106,000 (2006: £nil at 30 June 2006 and £106,000 at 31 December2006) and a market value of £594,000 (2006: £480,650 at 30 June 2006 and£636,000 at 31 December 2006). These shares have not yet been allocated toindividuals and accordingly, dividends on these shares have been waived.At 30 June 2007 the Group held 0.1% (2006: 0.2% at 30 June 2006, 0.2% at 31December 2006) of its own called up share capital. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 10 Notes to the Cash Flow Statement 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Operating profit 74,848 60,364 128,296 Adjustments for:Depreciation of property and equipment 4,428 4,258 9,113Amortisation of intangible assets 43,376 43,690 86,656Impairment of goodwill - - 515Gain on disposal of property and equipment 6 10 23 -------- -------- --------Operating cash flows before movements inworking capital 122,658 108,322 224,603 Decrease / (increase) in inventories 2,088 (4,437) 211(Increase) / decrease in receivables (16,547) 11,868 9,866Decrease in payables (13,928) (49,684) (15,185)Movement in other operating items (17) 1,118 (137) -------- -------- --------Cash generated by operations 94,254 67,187 219,358 -------- -------- -------- Adjusted cash generated by operations 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000 Adjusted operating profit (Note 4) 115,965 105,069 219,091 -------- -------- -------- Cash generated by operations 94,254 67,187 219,358Restructuring and reorganisation costs - 2,863 7,203 -------- -------- --------Adjusting items on a cash flow basis 94,254 70,050 226,561Accrued in prior period 5,725 4,426 4,426Accrued at period end (8,166) (4,056) (5,725) -------- -------- --------Adjusted cash generated by operations 91,813 70,420 225,262 -------- -------- -------- 6 months 6 months 12 months 2007 2006 2007 % % %Percentage of adjusted operating profitconverted to adjusted cash generated byoperations 79 67 103 -------- -------- -------- Analysis of changes in net debt At 1 January Non-cash Cash Exchange At 30 June 2007 movements flow movements 2007 £'000 £'000 £'000 £'000 £'000 Cash at bank andin hand 19,478 - (16,843) - 2,635Overdrafts (728) - 119 - (609) ------- ------- ------- ------- -------Net cash 18,750 - (16,724) - 2,026Bank loans due inless than one year (102,055) - (2,738) 46 (104,747)Loan notes due inless than one year (250) - - - (250)Bank loans due inmore than one year (654,841) (582) 30,537 7,513 (617,373)Finance leases duein less than oneyear (8) - - - (8)Finance leases duein more than oneyear (6) - - - (6) ------- ------- ------- ------- -------Total (738,410) (582) 11,075 7,559 (720,358) ------- ------- ------- ------- ------- Cash and cash equivalents (which are presented as a single class of assets onthe face of the balance sheet) comprise cash at bank and other short-term highlyliquid investments with a maturity of three months or less. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 11 Business CombinationsCash paid on acquisition net of cash acquired Date acquired 6 months 6 months 12 months 2007 2006 2006 £'000 £'000 £'000Current periodacquisitionsPrepaid Card Expo 19 January 2007 1,518 - -By Legal for Legal Limited 31 January 2007 228 - -MECOM & MEMEX 22 February 874 - - 2007Nicholas PublishingInternational 25 February 749 - - 2007Infoline Conferences Limited 23 March 2007 4,347 - -Investment Scorecard, Inc. 4 April 2007 25,180 - -Forum Pacific Rim Franchises 11 May 2007 4,089 - -TMTG Asia Pte Ltd 14 June 2007 847 - -Other 1,166 - -Prior-year acquisitions2006 acquisitions:Cavendish Publishing Limited - 6,055 6,055M-Solutions - 10,194 10,143Cordial Events Limited - - 1,491IPEX - 7,344 7,343Parks & Company 64 - 2,522Librapharm Limited - - 22,213Integrated Cultures Inc. - - 1,304IPSA, Inc. - - 3,710David Fulton PublishersLimited (53) - 4,684FAB4 - - 288Abu Dhabi Wedding Show - - 536Lawrence Erlbaum Associates,Inc. - - 34,806Citeline, Inc. - - 24,768Junction Limited 32 - 6,382Other - 6,110 3,8602005 acquisitions:Mark Two Communications BV 49 - -Medic-to-Medic1 4,087 - 113IIR Holdings Limited2 - - 2,417Other 86 81 842004 acquisitions:Cass3 - - 3,328Dekker - - 160Falconbury Limited 499 - -Other 196 - - 43,958 29,784 136,207 1 In respect of the Medic-to-Medic acquisition, the deferred consideration waspaid in 2007. 2 Cash paid in relation to the July 2005 acquisition of IIR Holdings Limited wasin respect of deferred consideration for the Omega group of performanceimprovement businesses. 3 In respect of the Cass acquisition, an earn out payment was made during 2006. Notes to the Unaudited Interim Statements - continuedFor the Six Months Ended 30 June 2007 12 Post Balance Sheet Events The following acquisitions were made subsequent to the period end. Theconsideration amounts disclosed are based on completion accounts and are subjectto change. Consideration Date acquired £'000 HQ Link Pte Limited 3 July 2007 3,259Shared insights 9 July 2007 3,469Datamonitor plc1 13 July 2007 502,000Productivity Press 31 July 2007 5,365The Superyacht Cup 3 August 2007 1,279 1On 13 July 2007, the Group declared its £502m offer for the issued sharecapital of Datamonitor plc, a leading global provider of market intelligencethrough on-line data, analysis and forecasting platforms, unconditional in allrespects. Settlement of the consideration due under the offer began on 27 July2007 in respect of those valid offer acceptances received by 13 July 2007representing 76.05% of the existing issued Datamonitor plc share capital. Theremaining consideration will be paid within 14 days of further valid acceptancesbeing received. Directors and Advisers Directors Registered Office Peter Rigby (Chairman) Informa plcDavid Gilbertson (Chief Executive) Mortimer HouseAnthony Foye (Finance Director) 37-41 Mortimer StreetDerek Mapp (Senior Non-Executive London W1T 3JHDirector)Sean Watson (Non-Executive Director)Dr Pamela Kirby (Non-Executive RegistrationDirector)John Davis (Non-Executive Director) Registered in England and Wales Number 3099067 Secretary StockbrokersJohn Burton Hoare Govett Limited 250 BishopsgatePublic Relations London EC2M 4AAMaitland Merrill Lynch InternationalOrion House Merrill Lynch Financial Centre5 Upper St Martin's Lane 2 King Edward StreetLondon WC2H 9EA London EC1A 1HQ Principal Lawyers RegistrarsCMS Cameron McKenna Lloyds TSB RegistrarsMitre House The Causeway160 Aldersgate Street WorthingLondon EC1A 4DD West Sussex BN99 6DA Ashurst AuditorsBroadwalk House Deloitte & Touche LLP5 Appold Street Chartered AccountantsLondon EC2A 2HA Abbots House, Abbey Street Reading Berkshire RG1 3BD This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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