Euromoney Institutional Investor

AIM Italia: ERM

£912.6m market cap

835p 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

On 30 April, Euromoney updated that it no longer expects to be running events in the group’s Q4 to end September, having previously updated in March about postponements and cancellations for Q3. This will take a further £34m off our revenue forecast (not yet adjusted) and £25m off gross profit (including £7m of irrecoverable associated costs). There will be no interim dividend when the half-year figures are announced on 4 June, with a decision on the final dependent on the situation in November. It has also closed the strategic review on the Asset Management segment, concluding that the best solution is to retain the business. In addition to earlier costs mitigation measures, members of the board are taking a 25% salary cut, with the CEO taking a 40% reduction.

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 11.3 8.3
2019A 401.7 108.2 104.6 77.7 10.7 9.7
2020E 335.5 58.5 50.0 37.0 22.6 19.0
2021E 400.0 94.6 84.0 62.2 13.4 9.0
Industry outlook

Management’s strategy remains to recycle 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. In the current situation, priorities are obviously shifting and the group’s subscription revenues (60% of FY19 revenue) are a clear advantage, albeit that new sales may be harder to achieve.

Last updated on 11/08/2020
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Sector
TMT
Share price graph
Balance sheet
Forecast net debt (£m) 44.3
Forecast gearing ratio (%) 11
Price performance
%
1m
3m
12m
Actual (2.6) 7.9 (38.2)
Relative* (4.1) 2.8 (28.6)
52-week high/low 1498.0p/697.0p
*% relative to local index
Key management
Leslie Van de Walle Chairman
Andrew Rashbass CEO
Wendy Pallot CFO
Chris Collett Investor relations

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