Shares in information, analytics and events firm Ascential (ASCL) jumped as much as 12% to 213p in early trading following the release of better-than-expected first-half results which saw operating profit swing back into the black.

Management also promised an update on ‘strategic actions to maximise shareholder value and position each business for long-term success’ before the end of the year.

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POSITIVE PROGRESS

For the six months to the end of June, revenue grew by 18% (or 16% on a like-for-like basis) to £307 million helped by a 30% jump in marketing income which makes up the bulk of the Events business.

The firm’s two principal first-half events, the Cannes Lions Festival and the Money 20/20 Europe fintech show, both saw attendance boom which was ‘especially pleasing’ as both had already topped their pre-Covid records last year.

Lions generated a 30% increase in revenue while Money 20/20 saw a 19% increase in revenue, and customer engagement with the upcoming Money 20/20 US show in Las Vegas next month remains strong.

Digital commerce revenue was up 10% on a like-for-like basis , despite challenges in the retail sector and uncertain trends in consumer spending, driven by demand from enterprise customers.

Product design revenue was up 8% driven by non-fashion products, with high levels of customer retention, and the firm’s investment in its AI-driven trend-forecasting product TrendCurve+ is already paying off.

On a statutory basis, operating profit swing from a loss of £35 million a year to a surplus of £0.7 million this financial half.

‘Despite continued macro uncertainty impacting the industries we serve and currency headwinds, our businesses remain well set for the year, supported by multiple growth levers’, commented chief executive Duncan Painter, adding: ‘After our seasonally stronger first half, we have had a solid start to the second half.’

‘The structural long-term growth in our end markets, and the success of our marquee events, underpins the board's confidence in the prospects of our businesses for the future.’

NEWS ON STRATEGIC REVIEW PENDING

Eighteen months ago, the firm revealed it was looking into what it called ‘the optimal organizational and capital structure’ for each business to deliver on their strategy and improve value for shareholders.

Nine months ago, it said it would separate its various worldwide digital commerce assets into a single independent, publicly-traded company to be listed in the US, as well as progressing the sale of the WGSN market intelligence and trend-forecasting division, leaving Ascential as a pure events business.

As well as getting free shares in the digital commerce spin-off, shareholders can expect to receive some of the proceeds of the WGSN sale as and when it goes ahead.

Commenting on the progress of the review, the firm said today preparations for the separation of the three businesses had ‘progressed well’ including branding, tax and legal structuring, preparation of standalone cost bases and initial SEC filings, and it would update investors more fully before the end of the year. 

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