Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on INFORMA PLC. We currently have 37 research reports from 4 professional analysts.
|07Dec16 07:00||RNS||US Private Placement Issue|
|17Nov16 04:45||RNS||Director/PDMR Shareholding|
|07Nov16 04:49||RNS||Holding(s) in Company|
|07Nov16 07:00||RNS||Nine Month Trading Update|
|02Nov16 02:33||RNS||Informa completes acquisition of Penton|
|26Oct16 03:46||RNS||Holding(s) in Company|
|26Oct16 07:00||RNS||Results of Rights Issue and Rump Placing|
Frequency of research reports
Research reports on
Slightly underpowered in Q3, but good long term value
07 Nov 16
Nine month trading looks slightly light of our estimates, although the group indicates it is on track to meet full year market expectations. Growing confidence around GE and BI are offset by continuing dullness in AP. Overall we do not expect any material changes to estimates, with c2% EPS dilution from completion of the Penton deal, and perhaps a small shave to organic growth on the back of this update, broadly offset by a c2% boost from current FX rates. We remain positive, based on the stock’s attractive ‘safe GARP’ fundamentals, but would not be surprised to see a bit of profit taking in the near term following a good run for the shares.
Penton completed, shares still looking very solid
04 Nov 16
Having now completed the £1.2bn Penton acquisition, Informa will provide a trading update on Monday November 7th, which we preview briefly here. Penton sets the tone in our view for what to expect from Informa going forwards: solid underlying EPS growth of c5% pa, augmented to around 7% pa including acquisitions, or TSR of 10% pa including dividends. Okay it’s not stellar, but it’s solid, and visible for many years given Informa’s fragmented markets. Valuation remains undemanding in our view at around 14x EPS (FY17E), despite the shares’ good run already. Indeed, in current uncertain markets, Informa’s growth, defensiveness and visibility look particularly attractive, and we reiterate our Buy rating and 825p TP.
Conviction List Q4 2016
05 Oct 16
Since its inception in 2010, the Conviction List has outperformed the market in 13 of 18 periods and a reinvested Conviction List would have returned 255% against a Small Companies index that would have returned 130%. Our Conviction List returned 3.7% over the last quarter; this was set against the benchmark UK Small Companies index that returned 11.3% over the same period. Our Q4 portfolio reflects our outlook for a temporary sweet spot for UK growth during the second half of 2016. The downside risk from the uncertainty of the EU Referendum result has been countered by stimulus from the Bank of England, signs of a looser fiscal stance and an 18% YoY reduction in the Sterling Exchange Rate. Compressed corporate fixed income spreads continue to provide a valuation underpin for global equities.
Extending its US presence in Exhibitions and Business Information
15 Sep 16
Informa has just announced the acquisition from MidOceanPartners and Wasserstein of the US group Penton Information Services for £1.2bn. The operation will be funded through the issuance of new debt and a fully-underwritten £715m rights issue (at 441p each for every four existing shares; a 36% discount to yesterday’s share price) expected to occur on 11 October 2016 just after the 10 October General Meeting for Shareholders. The completion of the operation is scheduled for November 2016.
N+1 Singer - Morning Song 15-09-2016
15 Sep 16
Tribal’s interims, under the new Board and CEO Ian Bowles, were in line with expectations. We make no changes to EBIT forecasts but upgraded PBT and EPS due to lower interest costs. Substantial progress has been achieved, with stability restored and new deals won. The group de-risked major contract challenges and restructured the workforce which will deliver £8.5m of annualised savings. The group has a valuable customer base, domain expertise, and now the leadership team and vision to execute a plan supported by a strengthened balance sheet. In the medium-term, we believe the group is capable of generating mid-teens EBIT margin, which coupled with top line momentum, should drive substantial returns over current levels.
Managing its way through the Growth Acceleration Plan's peak investment year
23 Aug 16
Informa announced H1 16 results globally in line with expectations, with revenues at £647.7m (up 4.7% and +2.5% organically) and adjusted OP at £202.2m (+6.3% and -0.7% underlying; a margin of 31.2% compared with 30.8% in H1 15). Note that, mainly due to the sterling weakness versus the US dollar in the aftermath of Brexit, forex had a c.£23m positive impact on revenue (<4%). Adjusted EPS rose by 3.1% to 23.1p after c.23% higher interest costs linked to the cost of debt ($250m US Private Placement loan notes of Q3 15 at higher rates) and the fact that c.80% of total debt is dollar denominated. The interim dividend is raised by 4% to 6.80p, in line with our expectations (as a reminder, the group increased its minimum dividend commitment from 2% growth to 4% through to the end of the Growth Acceleration Plan). The FY16 guidance was reiterated for a further period of “earnings and cash flow growth, including a full year of positive organic revenue growth in Business Intelligence.”
06 Dec 16
600 Group* (SIXH): Interim results: order book showing signs of improvement (CORP) | Real Good Food* (RGD): Commodity volatility impacts numbers (CORP) | Minds + Machines* (MMX): .vip goes live in China (CORP | Imaginatik* (IMTK): Interims (CORP) | iomart* (IOM): Quality business as usual (CORP) | Fulcrum (FCRM): Upgrades continue (BUY)
Joy of Techs
21 Nov 16
ICT evolution is driven by technological development as advances are made which both meet and shape customer requirements. Our 2011 note No such thing as a telco described the modern reality in that former ‘telcos’ now deliver varying elements of a range of managed services. We built on this theme last year, exploring in further detail their evolutionary paths, operating fundamentals, and cashflow yield similarities. In the consumer environment, demand for bundles of technology is complemented by demand for content. Across the pond, the mooted combination of AT&T and Time Warner typifies the bundled need of ‘pipe’ and content, since unbundled alternatives such as FaceTime and WhatsApp can be easier and clearer to chat over, and Amazon and Netflix are easier to watch anywhere. In the UK, BT’s defensive actions cover delivery, content and capabilities, acquiring EE yet also buying football rights. While TV was long ago added to triple play to become quad play, voice is now merely an app, and fixed and mobile seen as just dumb pipes: it's the content that will influence consumer choices. Growth of TV and film as well as music and gaming over IP leads to UK small cap opportunities. In context of the drive to maximise value from pipes and access by offering content and data, we look at some amongst the potential tech small cap beneficiaries: Amino*, Keyword Studios, ZOO Digital*, 7digital*, KCOM* and CityFibre*.
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.
Zwillenberg moves his first chess piece
09 Dec 16
New CEO Paul Zwillenberg has followed up swiftly on the strategy update of a week ago with his opening move: cutting DMGT’s stake in Euromoney from 67% to 49% via a placing and buyback by Euromoney. Chess players might see this as something of a queen’s gambit, sacrificing something upfront (EPS dilution of c7%, c2% reduction to SOTP, significant reduction in reported FCF) in exchange for increased future financial flexibility (both for DMGT and Euromoney). We see this as a sound move strategically. Even so, we move back from Buy to Hold, reflecting the recent rally in the shares, a valuation no longer obviously cheap relative to peers (just under 15x calendar 17E EPS following this deal), plus lower confidence on long term growth prospects for the portfolio. Near term we see better value in a DMGT “synthetic” (one third each INF/ASCL/ITV) offering similar macro-exposures at a lower multiple (under 13x EPS).
Leveraging brands and data
24 Nov 16
Future is building and widening its revenue streams based on strong global brands and on a scalable delivery platform. Growth of revenues in categories such as eCommerce, events and digital advertising resulted in broadly maintained group FY16 revenues, while the margin has started to build, helped by operating leverage. The Imagine purchase, post year-end, brings further scale and efficiency. The lengthening record of delivery against expectations and the premium projected earnings growth are making the multiple increasingly attractive.