COMMUNICATIONS
Rating: Baa2/BBB/BBB
- Informa to acquire Ascential for GBP 1.2bn, offering 568 pence per share, a 53% premium to yesterday’s close.
- Expected synergies: GBP 12mn annual cost savings. Informa projects >5% EPS accretion in first year.
- Pro-forma leverage to stay at upper end of 1.5-2.5x target before deleveraging towards the midpoint through 2025. Leverage is 1.6x as of today’s results.
- Ascential H124 saw GBP 158mn revenue and 15% organic growth with a net cash position of GBP 19mn. For context, Informa H1 revenue was GBP 1.7bn.
- https://www.londonstockexchange.com/news-article/I...
- H1 revenue +11.5% YoY (+0.5% vs. BBG consensus) or +11% underlying.
- Statutory op profit -12% YoY (-13.51% vs. BBG consensus) though adjusted operating profit is +12.9% reported or +18.8% underlying meaning an operating margin of 27.5% from 27.2% in H123. The largest division, Informa Markets (half of revenue), saw underlying adj-op profit growth of 24.5%. DPS of 6.4p is +10.3% YoY and looks ahead of the 6p expected by the market.
- OCF +51.3% YoY on increased profits and lower WC flows feeding through to FCF of +27.1%. Net Debt +GBP 256mn to GBP 1.7bn on the back of buybacks and acquisitions to give a leverage ratio of 1.6x from 1.4x at FY23.
- FY guidance increased across the board on strong H1 performance, good visibility and AI partnerships. See image.
- https://www.londonstockexchange.com/news-article/I...
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