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’s H119 results show the positive impact of management’s strategy, particularly in Pricing, Data and Management Intelligence (PDMI), where underlying subscription revenues grew 8%. Challenges remain in Asset Management and we have lowered our group revenue and earnings FY19e and FY20e forecasts by 6% and 5% respectively. The DMGT share distribution has ‘normalised’ the register and ERM now trades as a fully independent FTSE 250 company. With the liquidity constraint lifted, the rating better reflects ERM’s attractive cash flow and high quality 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 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
Last updated on 22/05/2019
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 regards 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 22/05/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (£m) 81
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 6.0 0.8 (2.2)
Relative* 7.9 (1.1) 5.4
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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