16th Dec 2005 07:00
United Business Media Pre-close Season Update* 2005 Second Half Trading TRADING PERFORMANCE IN LINE WITH EXPECTATIONS: EVENTS AND PRN PERFORMING WELL GROUP SUMMARYUBM has continued to achieve profitable underlying revenue growth in itsexhibitions, online and news distribution businesses, although in common withthe Industry, print remains challenged. Our strategy to increase UBM's presencein online and exhibitions continues, through acquisitions, disposals andorganic initiatives. Acquisitions made in 2004 and 2005 continue to achievetheir targeted returns.Overall trading performance is in line with expectations. PRN and CMP Asiacontinue to achieve good growth. CMP Medica is performing in line with itsbusiness case. CMP Information's exhibitions are strong, however it hasexperienced revenue pressure in print. CMP Media is performing in line withexpectations overall: events are growing and online growth is strong,offsetting continuing declines in print.OPERATING HIGHLIGHTS OF THE SECOND HALF OF 2005CMPICMP Information is performing in line with expectations, with strong results inits exhibitions business. In the UK, print revenues have weakened in certainareas, in particular, around recruitment. We have continued to makeacquisitions and disposals. In the second half we sold Exchange & Mart and AutoExchange for ‚£50.2m. We have made acquisitions totalling ‚£51.7m for the year,including the Publican titles and events, ABI Building Data, Informex chemicalsshow and the Mondial properties "Theme" magazine and "Bar" exhibition.CMP ASIAThe strong performance of our Asian exhibitions business has continued in thesecond half, with successful events including the Hong Kong Jewellery & WatchFair and the All China Leather Exhibition in Shanghai, in September. Wecontinue to explore opportunities for expansion through acquisitions, such asTissue World and the Japan Jewellery Fair, and through brand extensions and newproduct launches.CMPMEDICACMPMedica's performance overall is in line with expectations. The performanceof the important French business reflects the good progress made on integratingthe French medical trade press and marketing services acquisition. Marketconditions have been more challenging in Asia Pacific, particularly for TradePress, but cost savings have offset any revenue shortfalls.CMP MEDIACMP Media is performing in line with expectations with revenue in H2 broadlyflat. Growth in exhibitions and online is offset by declines in print. InHealthcare, CME's events revenues have largely recovered following changes inthe regulatory environment for pharmaceutical companies. Revenue in the USEntertainment business is flat, in line with our expectations. During thesecond half we have acquired Tech-Online, Light Reading, ICMI and Black Hat for‚£27.3m, which strengthen CMP's position in events and online.PR NEWSWIREPR Newswire continues to achieve increases in message volumes, length and yieldwhilst further expanding its product offering and providing additional servicesto members; the business is therefore growing in line with expectations.Outside the US, PR Newswire is on track to exceed its 10% margin target.OPERATING EFFICIENCIESUBM is continuing its programme of offshoring and outsourcing - this isdelivering cost savings and quality improvements.INVESTMENTSIn the second half we have disposed of a number of the remaining televisionassets. Our investment in Five was sold to RTL for ‚£247.6m and we have disposedof SIS for ‚£23m. Total disposals year to date are in excess of ‚£730m.The acquisitions made in 2004 (‚£192m) and 2005 year to date (‚£106m) areperforming well and are on track to generate the returns targeted.ONE OFF ITEMSThe disposals made in 2005 have given rise to significant one-off profits forthe year of around ‚£400m. During 2005, following the disposals, we have alsoundertaken a number of restructuring and business reorganisation projectsacross several of our continuing businesses. These projects take account of theconsequences of the sale of some businesses (principally NOP and Exchange andMart), the geographic realignment of our publishing divisions and a number ofother restructuring actions across the divisions to achieve greater customerand product focus whilst delivering lower operating costs. The costs of theseprojects will be reported as a one-off item for the year ended 31 December 2005and will be around ‚£40m for the full year.FINANCINGDuring the second half we have continued to return capital; in total ‚£550m hasbeen returned in the year to date. We have now repurchased and cancelled allexcept $5.7m of the US$250m 7.75% bond due 2009. We have also repurchased andcancelled over 55% of the $400m 2.375% Convertible Bonds due 2006.CMPMEDICA ANNOUNCEMENTFollowing the acquisition and integration of CMPMedica, Stephen Warshaw hasdecided to leave his post as CEO of CMPMedica and he will stand down next Aprilto pursue new career opportunities. We are pleased that Stephen will be helpingwith the transition in a consultancy capacity after his departure. UBM hasappointed Egon Zehnder to search for a new CEO for CMPMedica.*UBM is scheduled to announce its preliminary results for 2005 on 28 February2006. This announcement is the routine update prior to entering the January andFebruary close season associated with the preliminary resultsFor further information please contact:For United Business Media enquiries:Catherine Southgate United Business Media + 44 20 7 921 5031Chris Barrie Citigate Dewe Rogerson + 44 207 282 2943Simon Rigby Citigate Dewe Rogerson + 44 207 282 2847This 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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