Euromoney Institutional Investor

LN: ERM

£1310.9m market cap

1200p 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 established a strong base from which to grow, particularly in the Pricing, data and market intelligence segment where its tools and products are increasingly built into client workflows. Continued challenging trading in Asset management is factored into our numbers, which have been lifted to reflect the completion of the BoardEx acquisition (PBT, EPS +7% FY19, +8% FY20). The group has plenty of firepower to fund further acquisitions. The proposed distribution of the DMGT shareholding removes the constraint on liquidity and should allow the rating to reflect the attractive cash flow characteristics and high quality of earnings.

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 15.7 11.4
2018A 414.1 112.9 109.2 81.3 14.8 11.9
2019E 409.0 108.5 105.3 78.2 15.3 11.5
2020E 432.1 114.8 111.5 82.7 14.5 11.1
Last updated on 22/03/2019
Industry outlook

There is another good year in prospect for PDMI. Events are unlikely to show as much progress as they did in 2018, simply through having had such a good year. The larger question remains over the performance of Asset Management, where external factors continue to overshadow, particularly in the run up to Brexit. Given the potential economic and political repercussions, we regard this as a key sensitivity, particularly given the impact of a lack of confidence on customers’ potential willingness to commit to subscription contracts.

Last updated on 22/03/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 74.1
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (7.7) 2.0 (4.3)
Relative* (7.8) (5.1) (6.6)
52-week high/low 1450.0p/1132.0p
*% relative to local index
Key management
Leslie Van de Walle Chairman
Andrew Rashbass CEO
Wendy Pallot CFO

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