Last close As at 05/08/2026
GBP8.83
▲ −10.20 (−1.14%)
Market capitalisation
GBP11,117m
Research: TMT
Informa’s FY23 results were strong, slightly ahead of guidance at January’s update. Underlying revenues grew 30.4% and adjusted operating margin expanded from 21.9% to 26.8%, with all four operating segments posting underlying revenue progress. The momentum has continued into FY24, and formal guidance has been edged ahead. The group generates significant amounts of cash, and leverage at end FY23 of 1.4x was below the guided range of 1.5–2.5x. With modest investment requirements and M&A opportunities of a large enough scale hard to come by, it seems likely that the share buyback programme will be extended further, underpinning the valuation.
Informa |
FY24 off to a good start
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11 March 2024 |
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Informa’s FY23 results were strong, slightly ahead of guidance at January’s update. Underlying revenues grew 30.4% and adjusted operating margin expanded from 21.9% to 26.8%, with all four operating segments posting underlying revenue progress. The momentum has continued into FY24, and formal guidance has been edged ahead. The group generates significant amounts of cash, and leverage at end FY23 of 1.4x was below the guided range of 1.5–2.5x. With modest investment requirements and M&A opportunities of a large enough scale hard to come by, it seems likely that the share buyback programme will be extended further, underpinning the valuation.
Leveraging specialist knowledge
Informa’s four segments are all underpinned by their positioning in the knowledge economy, with FY23 results showing the continuing importance of content-led live events in an increasingly digital landscape. Within the segments, the group’s many brands vary in scale, but each has a prominent position in its own market. Informa Markets (around half group revenue) had a full return of its programmes, including China, delivering 66% underlying revenue growth and an operating margin uplift from 18.7% to 28.9%. Groupwide portfolio expansion added 13% revenue growth and 17% of adjusted operating profit, adding 0.7% to operating margin.
Positive outlook for FY24 and beyond
Prospects are good for FY24, building on a strong Q1 to date, with around £1.5bn of full year revenue either already taken or booked. Guidance here is up £25m to £3,450–3,500m, with a £5m uplift to adjusted operating profit to £950–970m, representing a further nudge up in operating margin. FY24 plans include brand replications into new geographies, and management highlighted growth opportunities in India, the Middle East and Africa, all fast-developing markets with considerable local investment in venues and infrastructure. Informa generates strong cash flows, and the guidance is for free cash flow of £720m in FY24. Capex requirements are relatively modest at 3–4% of revenue and dividend payouts have been at around 40% of EPS, meaning that, in the absence of acquisitions of a large enough scale, there may be scope to further extend the share buyback programme.
Valuation
The ongoing combination of Informa Tech business with US-listed TechTarget, likely to complete in Q424, will provide an external market valuation for that segment, to be 57% owned by Informa. The rapid growth in Informa’s EPS, boosted by the lower number of issued shares, highlights the attractive value on a P/E basis.
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Consensus estimates
Source: LSEG. *Operating profit and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. EPS are fully diluted. |
EDISON QUICKVIEWS ARE NORMALLY ONE-OFF PUBLICATIONS WITH NO COMMITMENT TO WRITING ANY FOLLOW UP. QUICKVIEW NOTES USE CONSENSUS EARNINGS ESTIMATES.
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Research: Industrials
Melrose Industries’ shares have been re-rated over the past year, reflecting the company becoming a pure aerospace group and its improving operational performance. Attractions remain from the Risk and Revenue Sharing Partnerships (RRSPs) and associated cashflows along with the investments being made, such as in additive fabrication, to drive organic growth beyond the already positive aerospace market.