Euromoney Institutional Investor

AIM Italia: ERM

£1450.8m market cap

1328p last close

Euromoney Institutional Investor is a global, multi-brand information business that provides critical data, price reporting, insight and analysis to global and specialist markets.

Investment summary

As indicated in the year-end trading update, FY19 figures were ahead of expectations, with continued good progress in Pricing, Data and Market Intelligence (PDMI), where the Fastmarkets brand is gaining traction. There was no new news on Asset Management, now accounted as discontinued. £50m of net cash at the year-end allows plenty of scope for investment and M&A towards the goal of a fully ‘3.0’ business model, embedded in its clients’ workflows. The $20.4m purchase of Wealth–X clearly fits with this. Recent share price weakness has opened up a notable discount to global B2B information peers.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 390.3 105.0 99.9 73.6 18.0 13.1
2019A 401.7 108.2 104.6 77.7 17.1 15.5
2020E 415.5 113.5 105.0 77.8 17.1 13.0
2021E 428.0 121.6 111.0 82.3 16.1 11.7
Industry outlook

Management’s strategy remains one of continuing recycling of capital to align the group with its 3.0 objectives and the last three years have seen a considerable realignment of the portfolio. Some of this is self-help; some is M&A driven. The strategic review of the Asset Management segment, though, is on a different scale, as this segment accounted for 36% of FY19 group revenue and 43% of operating profit. Assets in the pricing space are particularly attractive but securing them in a competitive landscape is not easy and other 3.0 B2B opportunities, like Wealth-X, may take precedence.

Last updated on 16/01/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 11.3
Forecast gearing ratio (%) 3
Price performance
%
1m
3m
12m
Actual 3.8 (6.2) 6.9
Relative* 2.8 (12.0) (4.6)
52-week high/low 1498.0p/1152.0p
*% relative to local index
Key management
Leslie Van de Walle Chairman
Andrew Rashbass CEO
Wendy Pallot CFO
Sarah Cooke IR

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