Information services provider and events firm Euromoney Institutional Investor (ERM) gained 1.6% to £10.16 as it resumed dividend payments despite a hit to profit from the pandemic.

For the 12-month period ended 30 September 2020, pre-tax profit fell 60% to £32.9 million year-on-year as revenue slipped 17% to £335.3 million. Cash conversion increased 11% to 100%.

The company resumed dividend payments and recommended a final payment for the 2020 financial year of 11.4p per share, down from 33.1p a year earlier.

Looking ahead, the company said Covid-19 remained a headwind, although it added demand for price reporting and essential market intelligence remained strong with good visibility for pricing and Data & Marketing Intelligence subscriptions.

Chief executive Andrew Rashbass said: "Despite Covid-19, Euromoney continues to make strategic progress as a 3.0 information-services business. Strong subscriptions growth in Pricing and Data Market Intelligence underpins the resilience and good prospects of the group.

‘Euromoney's performance, the cash-generative nature of the business even during the pandemic and the board's confidence in the outlook mean we are able to invest in growth and recommend the resumption of dividend payments.’

Numis analyst Steve Liechti noted full year earnings were 6% above his forecast and commented: ‘We see a high quality B2B operator with over two thirds of sales via subscriptions; shares look good value on any event recovery scenario. The balance sheet is strong allowing organic investment and M&A options.’


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Issue Date: 19 Nov 2020