Euromoney Institutional Investor

LN: ERM

£1417.2m market cap

1298p 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’s Q1 update demonstrates the value of management’s focus on Pricing, Data and Market Intelligence, where 9% growth has more than offset well-flagged weakness in Asset Management, down 4%. Full year guidance is unchanged, but we point out that our forecasts do not reflect December’s acquisitions of BoardEx and The Deal yet to complete. Management expects these to be earnings enhancing in their first year. Net cash at end December of £93.8m is prior to payment for these deals of $87.3m (£66.6m), leaving ample resource for further deals.

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 17.0 12.4
2018A 414.1 112.9 109.2 81.3 16.0 12.8
2019E 400.0 101.2 98.1 72.9 17.8 13.4
2020E 412.0 106.8 103.6 76.9 16.9 13.0
Last updated on 21/02/2019
Industry outlook

The outlook statement suggested 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 21/02/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 157.4
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 2.0 6.1 8.4
Relative* (0.7) 4.1 10.4
52-week high/low 1450.0p/1132.0p
*% relative to local index
Key management
Andrew Rashbass CEO
Wendy Pallot CFO

Content on Euromoney Institutional Investor