Euromoney Institutional Investor PLC Annual Report & Accounts 2008

80766 Cover 8/12/08 18:53 Page 1 Annual Report & Accounts 2008 Annual Report & Accounts Annual Report & Accounts 2008 www.euromoneyplc.com Euromoney Institutional Investor PLC Nestor House, Playhouse Yard, London EC4V 5EX Euromoney Institutional Investor PLC Euromoney Institutional Investor PLC 80766 pre 8/12/08 19:58 Page ii Welcome to Euromoney Euromoney Institutional Investor PLC is listed on the London Stock Exchange and is a member of the FTSE 250 share index. It is a leading international business-to-business media group focused primarily on the international finance, metals and commodities sectors. It publishes more than 70 magazines, newsletters and journals, including Euromoney, Institutional Investor and Metal Bulletin. It also runs an extensive portfolio of conferences, seminars and training courses and is a leading provider of electronic information and data covering international finance, metals and commodities, and emerging markets. Its main offices are located in London, New York, Montreal and Hong Kong and nearly half of its revenues are derived from emerging markets. Principal Brands TM Contents Group 42 Independent Auditors’ Report Company 2 Highlights 44 Group Income Statement 92 Independent Auditors’ Company Report 2 Chairman’s Statement 45 Group Balance Sheet 93 Company Balance Sheet 7 Reconciliation of Group Income 46 Group Cash Flow Statement Statement to underlying results 94 Notes to the Company Accounts 47 Note to the Group Cash 8 Directors’ Report 104 Five Year Record Flow Statement 22 Directors and Advisors 105 Financial Calendar and 48 Group Statement of Recognised Shareholder Information 24 Corporate Governance Income and Expense 30 Directors’ Remuneration Report 49 Notes to the Accounts 80766 pre 8/12/08 19:58 Page 1 Activities Financial Publishing Training Super Bowl of Indexing®; Global ABS; and Financial publishing includes an extensive The training division runs a comprehensive The Annual ABS East Conference for the portfolio of titles covering the international range of banking, finance and legal courses, asset-backed securities market. In the energy capital markets as well as a number of both public and in-house, under the sector, the group runs the world’s leading specialist financial titles. Products include Euromoney and DC Gardner brands. Courses annual coal conference, Coaltrans; TelCap runs magazines, newsletters, journals, surveys and are run all over the world for both financial International Telecoms Week, the best meeting research, directories, and books. A selection of institutions and corporates. In addition the place worldwide for telecom carriers and the company’s leading financial brands company’s Boston-based subsidiary, MIS, runs service providers and MIS runs the leading includes: Euromoney, Institutional Investor, a wide range of courses for the audit and event for the information security sector in the Euroweek, Latin Finance, Asiamoney, Global information security market. US, InfoSec World. Investor, Project Finance, Futures & Options World, Total Derivatives and the hedge fund Conferences and Seminars Databases and Information Services titles EuroHedge, InvestHedge, AsiaHedge, The company runs a large number of The company provides a number of Absolute Return and Alpha. sponsored conferences and seminars for the subscription-based database and electronic international financial markets, mostly under information services for financial markets. Business Publishing the Euromoney, Institutional Investor, Metal Montreal-based BCA is one of the world’s The business publishing division produces Bulletin and IMN brands. Many of these leading independent providers of global specialist magazines and other publications conferences are the leading annual events in investment research. The company’s US covering the metals and mining, energy their sector and provide sponsors with a subsidiary, Internet Securities, Inc. provides the and legal sectors. Its leading brands include: high quality program and speakers, and world’s most comprehensive service for news Metal Bulletin, American Metal Market, outstanding networking opportunities. Such and data on global emerging markets, and Petroleum Economist, World Oil, Hydrocarbon events include: The Global Borrowers and includes CEIC, one of the leading providers of Processing, International Financial Law Review, Investors Forum; the Euromoney Saudi time-series macro-economic data for emerging International Tax Review and Managing Arabia Conference; the Annual Global Hedge markets. The company also offers global capital Intellectual Property. Fund Summit; the European Airfinance market databases through a joint venture with Conference; the Islamic Finance Summit; the its AIM-listed partner, Dealogic. Year in Brief Revenue (£m) Adjusted diluted earnings a share* (pence) 08 332.1 08 44.4 07 305.2 07 35.0 06 220.5 06 28.6 Adjusted operating profit* (£m) Dividend (pence) 08 81.3 08 19.25 07 78.6 07 19.0 06 43.8 06 17.0 Adjusted Operating Profit* £m 90 80 Revenue up 9% 70 60 Adjusted diluted earnings a share up 27% 50 Profit before tax up 21% 40 30 Dividend up 1% 20 2004 2005 2006 2007 2008 *A detailed reconciliation of the group’s underlying results is set out in the appendix to the Chairman’s Statement on page 7. Annual Report and Financial Statements 2008 01 80766 pre 8/12/08 19:58 Page 2 Chairman's Statement Highlights 2008 2007 change Revenue £332.1m £305.2m +9% Underlying results* • Adjusted operating profit £81.3m £78.6m +3% • Adjusted profit before tax £67.3m £55.5m +21% • Adjusted diluted earnings a share 44.4p 35.0p +27% Statutory results • Operating profit £61.0m £54.1m +13% • Profit before tax^ £37.4m £41.1m -9% • Diluted earnings a share 40.4p 29.9p +35% Dividend 19.25p 19.0p +1% * A detailed reconciliation of the group's underlying results is set out in the appendix to the Chairman's statement. ^ Statutory profit before tax includes a foreign exchange loss on tax equalisation contracts of £12.0 million (2007: £1.8 million). This is matched by an equal and opposite tax credit and therefore has no effect on earnings a share. The foreign exchange losses and the tax credit are excluded from underlying profit and the underlying tax expense (note 7, 8 and appendix to the Chairman's statement). It was a year when our strategy paid off, in spite of shocks deliver strong revenues and profits. The proportion of in the financial and commodities markets. The increased subscription revenues as a percentage of the total increased reliance on high quality subscription products, a greater from 34% to 37%, contributing strongly to the robustness of push into the emerging economies, continued development our trading, and we expect the proportion to increase. of the Metal Bulletin acquisition that we completed more than two years ago, stronger legal and telecoms publishing Adjusted profit before tax rose by 21% to £67.3 million in and events, and a continued grip on costs combined to the year to September 30. Adjusted diluted earnings a share deliver a record year for revenues and profits. We believe increased by 27% to 44.4p, and the directors recommend that strategy will serve us well in whatever is to come in an unchanged final dividend of 13p a share to be paid to world markets. shareholders on February 4 2009. New debt facilities are in place for the next five years. Cash Throughout 2008 the business has demonstrated its resilience generation ran at record levels during the year and continue to in the face of problems in global credit markets, a gloomier do so into the first quarter. The proposed final dividend is the economic outlook, and more recently the major impact of the same, subject to your approval, and we also propose to offer credit crisis on the world’s leading financial institutions. shareholders a choice to take the final dividend in shares or cash. Total revenue increased by 9% to £332.1 million. Subscription revenues increased by 18% to £123.1 million. Growth from The new year has begun relatively well. Some revenue streams emerging markets continued to compensate for weakness in such as advertising and sponsorship, as we expected, have the developed financial markets, and emerging markets now begun to turn down, but many of the businesses, including account for nearly 50% of the group’s revenues. Our strengths those in financial events and publishing outside the main in sectors outside finance, particularly metals, commodities money centres, as well as those outside finance, continue to and energy, is demonstrated by the 16% increase in revenues from business publishing activities, which helped offset the weakness in some financial sectors, particularly structured finance and hedge funds. The increase in adjusted profit before tax was helped by a £4.5 million reduction in underlying net finance costs, reflecting the strong operating cash flows of the group which increased by 11% to £99.8 million. Net debt fell to £172.0 million compared with £201.8 million at March 31 and new five-year debt facilities have been agreed. Strategy The company’s strategy over the past five years has been to build a more resilient and better focused business. This strategy has been executed through increasing the proportion of revenues derived from subscription products; investing in products of the highest quality that customers will value in tough times as well as good; eliminating products with a low margin or too high a dependence on advertising; maintaining 02 Euromoney Institutional Investor PLC 80766 pre 8/12/08 19:58 Page 3 tight cost control at all times; retaining and fostering an revenues, is less than it was and no customer accounts for entrepreneurial culture; and making selective acquisitions to more than 1% of group revenues. accelerate that strategy. Although the group is exposed to the uncertainty of the The success of this strategy is highlighted by the 2008 results. economic outlook in general, and to the problems in financial Since 2003, revenues have more than doubled.

Load more