Euromoney Institutional Investor

LN: ERM

£1431.2m market cap

1310p last close

Euromoney Institutional Investor is a global, multi-brand information business that provides critical data, price reporting, insight, analysis and must-attend events to financial services, commodities, telecoms and legal markets.

Investment summary

Euromoney has released a year-end trading update ahead of its full-year results, scheduled for 21 November. This indicates figures slightly ahead of our forecasts, with group revenues of £401m (flat underlying) and a better group margin than we had anticipated, giving an adjusted PBT result of £104m. The strategic review of Asset Management is continuing, and the division will be reported as discontinued business. Net cash at the year end is expected to have been around £50m. We will adjust our FY20e and FY21e projections on publication of the full results.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 428.4 110.3 106.5 76.4 17.1 12.5
2018A 414.1 112.9 109.2 81.3 16.1 13.0
2019E 398.0 102.2 99.0 73.5 17.8 12.1
2020E 418.0 108.2 105.0 77.9 16.8 12.7
Industry outlook

Group strategy is predicated on recycling capital to improve the quality of the assets and drive higher revenue growth. Some of this is self-help; some is M&A driven. The review will seek to establish if Euromoney is the best owner of the businesses and if the use of capital within the Asset Management division delivers the best value to shareholders.

Last updated on 15/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 81
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.4) 0.9 0.8
Relative* (8.5) (3.2) (3.6)
52-week high/low 1498.0p/1132.0p
*% relative to local index
Key management
Leslie Van de Walle Chairman
Andrew Rashbass CEO
Wendy Pallot CFO
Sarah Cooke IR

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