- Full year revenue to be at upper end of expectations
- Profit guidance reiterated
- Share buybacks continue
International events group Informa (INF) said strong operational performances across all its businesses in the first five months of the year mean it is on track to deliver full year results at the upper end of market expectations.
The shares ticked up 0.6% to a new 12-month high of 872p in early trading, taking gains for the year to 12% compared with a 7% rise for the FTSE 100 index.
CEO Stephen Carter said: ‘The Informa Group has changed gears and we are now delivering 10%+ growth.’
He added: ‘Our strategy to focus on specialist markets, unique content and internationalisation is delivering double-digit underlying revenue growth, margin expansion and increasing profits and cash flows.’
The company sees higher revenue visibility after generating around £1.4 billion in the first five months of 2024, with a further circa £1 billion of subscriptions/exhibitor revenue committed and visible and strong events rebooking for 2025.
The firm’s share buyback programme was recently expanded by half to £500 million, of which £300 million has so far been completed.
UPGRADES EXPECTED
Earnings revisions have been on a upward trajectory over the last year with consensus forecast EPS (earnings per share) rising by around 5% before today’s upgrade, according to Refinitiv data.
Consensus analyst revenue forecasts for the year to 31 December 2024 currently sit at £3.46 billion, near the bottom end of the company’s guided range of between £3.45 billion and £3.5 billion, implying a small upgrade.
Management has guided for adjusted group operating profit in the range of £950 million to £970 million and adjusted free cash flow of £720 million.
Shore Capital analyst Roddy Davidson has a revenue forecast which already sits at the upper end of company guidance, representing year-on-year growth of 9.7%.
Davidson believes the company has the potential to exceed the full year operating profit guidance range. ‘More broadly, we are positive on the dynamics of the international exhibitions industry and like the breadth of Informa’s portfolio of leading brands’, he said.
