Annual Report 2013
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Annual Report 2013 Annual Report Informa plc Annual Report & Financial Statements 2013 COMPANY INFORMATION Our Key Brands In life and business we are always trying to stay ahead and make best use of the deluge of information Informa’s reputation is built and largely known through its many leading presented to us. The vital data or research needed market facing brands. The listing below features just a handful of our offering in the various markets and countries in which we work. may be out there at the click of a mouse or tap of a screen, but knowing where to look isn’t always so easy. ACADEMIC PUBLISHING This is where Informa plays a crucial role. Our expertise means IBI provides market leading global news and analysis including Our Academic Publishing business, Taylor & Francis, comprises of the following implements: we can guide people through the information maze. Because we products such as Lloyd’s List for the maritime industry and take the time to understand our customers’ needs, we are able Citeline for the clinical drug trials market. ITM delivers strategic Routledge Psychology Press Taylor & Francis Focal Press to provide them with the specific insight and knowledge that insight on the global telecoms and broadcasting industries, Garland Science CRC Press Cogent OA enables them to make good decisions, grow their business and, based on up-to-the minute market data and primary research. through ongoing education, stay ahead in their respective field. IFI provides real-time news, data and analysis electronically The three divisions of Informa: Academic Publishing, Business across key financial markets 24 hours a day. By providing Intelligence and Global Events – all play a key role in this. After business critical information Business Intelligence delivers all, insightful information is the single most valuable resource lasting advantage to companies, organisations and governments, BUSINESS INTELLIGENCE available to individuals and organisations. enabling them to make valuable and profitable decisions in highly competitive, international markets. Agra Europe CPD Cast EPFR iMoney Net Medtrack Scorecard Our Academic Publishing division publishes books and journals with over 93,000 titles available worldwide. Our expertise spans a broad Our Global Events division complements the information services Bondwatch Datamonitor Expert Opinion Investment Ovum Scrip range of sectors, from architecture, civil engineering, physics and of Business Intelligence and Academic Publishing by providing Energy law, to energy, nursing, education and health. We provide essential vital face-to-face networking opportunities enabling companies Citeline Fertecon Lloyd’s List Primal Pictures Verdict eBenchmarkers and world-class reference materials for academics and professionals, and individuals to develop, improve and compete. In this global CMRO iLaw MarketLine Prime in addition to a host of handbooks and textbooks for students. knowledge based economy, the emphasis is on being connected. Using the latest publishing technology, we deliver Informa titles to This is where our standing as one of the world’s largest organisers customers in the format they choose. All journals and over 50,000 of exhibitions, trade conferences and seminars comes into play. GLOBAL EVENTS book titles are available digitally. Informa is highly respected as an Informa produces over 3,000 events across the world every year, international publisher, with a network of offices stretching from the including The Monaco Yacht Show, Broadband World Forum and UK and US to the emerging markets of India, China and South Africa. Arab Health. All our events allow communities to meet, share Adam Smith Conferences – Russia Cityscape – Dubai International Sourcing Fair – Australia and develop ideas, profile new products and services, build Through our Business Intelligence division we offer a range of Aesthetics Asia – Singapore Com World Series – Global Middle East Electricity – Dubai relationships, and ultimately do business. information services including breaking news and views, proprietary Africa Electricity – South Africa Construct Canada – Canada One of a kind – Canada data and the latest research and analysis. The division is split into three parts: Informa Business Information (“IBI”), Informa Telecoms Arab Health – Dubai Cross Media – UK Palme – China and Media (“ITM”) and Informa Financial Information (“IFI”). Art Toronto – Canada Digital TV Series – UK Partnerships in Clinical Trials – USA Beyond Beauty – France EuroMediCom – Monaco Serigrafia – Brazil Essential Reads BioEurope – Germany FanExpo - USA Super Return Series – Global BioTech Showcase – USA Fispal – Brazil The Bride Show – Dubai • Knowledge and information in the academic market P08 Broadband World Series – Global Hospital Build – Dubai VitaFoods – Switzerland An insight into how quality academic research plays such a key role in the knowledge economy – providing the building blocks on which all businesses can develop and grow. • Demand for knowledge and insight P10 ADDRESS REGISTERED OFFICE ACKNOWLEDGEMENTS In the digital age there is no shortage of information; the real skill lies in filtering out Gubelstrasse 11 22 Grenville Street Produced by Informa Global Support in what is essential. Find out how Informa’s supply of specialist, targeted data enables partnership with Accrue Fulton. businesses to gain competitive advantage. CH-6300 Zug St Helier Switzerland Jersey Designed by Accrue Fulton JE4 8PX www.accruefulton.com • The rise and rise of communities and connectivity P12 Informa House Photography by John Hyam The digital revolution increases efficiency and lowers costs for companies but the 30-32 Mortimer Street www.johnhyam.com importance of face-to-face interaction is still crucial. Discover how events and London W1W 7RE Illustrations by John Holcroft conferences fit in to this new world. United Kingdom www.johnholcroft.com Printed by Pureprint Group • Our fourth operating division P14 www.pureprint.com Read about Global Support and the expertise it provides to Informa’s business divisions to allow them to run to their maximum potential. This report is printed on Vision Superior paper. Both papers contain material sourced from well-managed forests, certified in accordance with the FSC (Forest Stewardship Council) OVERVIEW Financial Highlights 5.0% 2.2% 1.5% Adjusted diluted Dividend per Group organic EPS growth share growth revenue growth Financial Highlights • Group organic revenue growth (continuing) of 1.5% to £1,132.4m (2012: £1,110.6m) • Adjusted operating profit (continuing) up 1.5% to £335.5m (2012: £330.5m) • Adjusted diluted EPS growth (continuing) of 5.0% to 40.1p (2012: 38.2p) • Statutory loss of £6.4m (2012: £90.7m profit), reflecting loss from discontinued operations of £109.5m • Strong cash flow – cash conversion (continuing) increased to 99% (2012: 94%) • Net debt/EBITDA ratio of 2.2 times (2012: 2.1 times) • Deferred income growth of 8% at constant currency • Final dividend maintained at 12.50p; total dividend up 2.2% to 18.90p (2012: 18.50p) Operational Highlights • Appointment of new Group Chief Executive • Strategic investment in China through the acquisition of a majority stake in Baiwen, the owner and operator of China Beauty Expo • Disposal of non-core Corporate Training businesses for USD 150m • Launch of open access publishing brand, Cogent OA • Over 275 large events held in 2013 • Academic Publishing and Global Events performing well Contents Strategic Report Governance Financial Statements Company Information 02 Chairman’s Statement 34 Board of Directors 66 Independent Auditor’s Report 146 Legal Notices 04 Informa, a culture of insight, 36 Advisers 70 Consolidated Income 147 Shareholder Information intelligence and innovation 37 Directors’ Report Statement 04 Who We Are 41 Corporate Governance 71 Consolidated Statement of Statement 04 Where We Do It Comprehensive Income 45 Audit Committee Report 05 What We Do 72 Consolidated Statement of 49 Nomination Committee Changes in Equity 06 Our Business Model Report 73 Consolidated Statement of 08 Knowledge and information 50 Remuneration Report in the academic market Financial Position 10 Demand for knowledge 74 Consolidated Cash and insight Flow Statement 12 The rise and rise of communities 75 Notes to the Consolidated and connectivity Financial Statements 14 Our fourth operating division – 139 Company Balance Sheet Global Support 140 Notes to the Company 16 Informa Intelligence Financial Statements 18 Group Chief Executive’s Review 145 Five Year Summary 23 Financial Review 27 Key Performance Indicators 28 Principal Risk Factors 32 Corporate Responsibility Annual Report & Financial Statements for the year ended 31 December 2013 INFORMA PLC 01 STRATEGIC REPORT Chairman’s Statement I am pleased to report that it has been another good year for Informa. We delivered a solid earnings and cash performance in 2013, ensuring an attractive return for our shareholders. It was also a year of significant leadership change following the retirement of Peter Rigby as Chief Executive. In the task of appointing a successor, the Board was keen to identify somebody with an outside perspective that had enough objectivity to manage the change after such a long-standing predecessor, but also with a strong appreciation of the culture of the Group and the markets in which it operates. The Board was, therefore, delighted to appoint Stephen Carter to the role, who it feels has all the right attributes to be successful. DEREK MAPP 02 INFORMA PLC Annualannual