11 July 2013
Centaur Media Plc
Year-end trading statement
Centaur Media plc (LSE: CAU, the "Group"), the business information and events group, today issues a trading update for the year ended 30 June 2013 and outlines a refocusing of the business around its key markets.
Current trading
The Group expects to report profits slightly ahead of market expectations following the IMS published on 15 May 2013, with reported revenues up 10% on the prior year, EBITDA margins maintained at 18% and adjusted profits before taxation up 8%. Underlying revenues are, as anticipated in the IMS, expected to be 3% lower than in the previous year. Net debt at 30 June 2013 has reduced as expected to £19.5m, a multiple of approximately 1.5 times anticipated EBITDA.
The Group continues to make good progress in rebalancing revenues in favour of digital, paid for content and events. Digital and events revenues now account for 34% and 36% respectively of Group revenues, with both revenue types growing on a reported basis by approximately 27% compared to last year. Paid for content revenues now account for 28% of Group revenues compared to 24% last year.
Strategic refocus
The Group is refocusing its business around four market segments: Marketing, Professional, Financial and Consumer.
This approach is driven by renewed emphasis on the customers Centaur serves across each of these markets. It will facilitate greater focus on delivery and execution of revenue and cost synergies, and strengthen initiatives to increase the proportion of revenues generated from digital, paid for content and events.
The Group will report its results for the year ended 30 June 2013 across these four segments and will provide more detail when the final results are published in September 2013.
Organisational changes
Peter Harris has been appointed as interim Group Finance Director, a non Board position. Peter has a strong finance background across both the media and quoted company sectors including senior roles at Capital Radio and the Engine Group. The management team has been further strengthened with an interim appointment to the Business Publishing Managing Director position. The Board has initiated a process to appoint a new Chief Executive.
Business review
The Business Publishing division has closed out the year well with a busy and successful programme of awards events. The weakness across the financial titles reported in the May IMS, particularly in print, has shown signs of stabilising and Centaur continues to see good growth in digital revenues across the division.
In Business Information, the Econsultancy and Profile subscription products are growing strongly. Econsultancy's UK business continues to grow rapidly, and the Group has acted to address the losses incurred in Econsultancy's overseas operations. Whilst the Board continues to recognise the exciting growth potential that Econsultancy offers, the EBITDA expectations in the earn-out year to 31 December 2015 have reduced from £4m to £3m with a consequential reduction in the anticipated deferred consideration.
In the Exhibitions division, Marketing Week Live, Subcon and the two regional Homebuilding shows all ran in line with expectations.
The Group has a strong pipeline of new product development initiatives. The Meetings Show has launched at Olympia this week, the Festival of Marketing runs for the first time in October, and a number of new digital products will be launched in the first half of the 2014 financial year.
Cash flow, balance sheet and exceptional items
Operating cash flow in the last two months of the year has been strong. Deferred revenues at 30 June 2013 were £14.3m, 27% ahead of the same period last year, reflecting the impact of new product launches and the acquisition of Econsultancy.
Exceptional costs in the second half of the year will include earn-out costs related to acquisitions, the unwinding of the discount related to the Econsultancy earn-out, and the impact of restructuring initiatives announced previously and the recent Board and management changes.
Mark Kerswell, Interim Chief Executive, commented:
"We are pleased to be able to report good growth in profitability and strong progress in developing attractive revenue streams in digital, paid for content and events.
"With renewed vigour and enthusiasm across the Group, improved stability, a sharper focus on our markets and customers and an encouraging pipeline of new digital platforms and event launches, we are increasingly confident that the outlook for 2014 is positive."
The Group expects to release its full year results on 12 September 2013.
Enquiries
Centaur Media plc |
+44 (0) 20 7970 4000 |
Mark Kerswell, Interim Chief Executive Peter Harris, Interim Finance Director |
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College Hill |
+44 (0) 20 7457 2020 |
Adrian Duffield / Kay Larsen |
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