Financial Analysis
"The business is now four times the size it was in 2001. 37% of our profits come from the Academic & Scientific markets."
Peter Rigby - Chief Executive
- Revenue £1.13 billion - 9% pro forma growth
- Adjusted operating profit £261.0m - 19% pro forma growth
- Adjusted operating margin rises above 23%
- Strong trading across all three divisions (Academic & Scientific, Professional and Commercial) and all three business streams (Publishing, Performance Improvement and Events)
- Datamonitor delivers 22% pro forma revenue growth for the full year
- Adjusted cash conversion 110% of adjusted operating profit
- Total dividend increases 39%
- Confident of 2008 outlook
| 2007 | 2006 | Increase | Pro forma1 | |
|---|---|---|---|---|
| £m | £m | % | % | |
| Revenue | 1,129.1 | 1,039.1 | 9 | 9 |
| Operating profit | 154.0 | 128.3 | 20 | |
| Adjusted² operating profit | 261.0 | 219.1 | 19 | 19 |
| Profit before tax | 124.4 | 86.5 | ||
| Adjusted³ profit before tax | 202.6 | 178.1 | ||
| Profit for period | 100.1 | 67.8 | ||
| Adjusted4 profit for period | 151.9 | 132.2 | ||
| Basic earnings per share (p) | 23.4 | 16.0 | ||
| Diluted earnings per share (p) | 23.3 | 15.9 | ||
| Adjusted4 diluted earnings per share (p) | 35.5 | 31.1 | ||
| Dividend per share (p) | 16.9 | 12.2 | ||
| Adjusted cash conversion5 | 110% | 103% |
Notes
- Adjusted for material acquisitions and effects of changes in foreign currency exchange rates. This also adjusts for the reduction in revenue of £18m in 2007 from the new 3GSM contract and the impact of the quadrennial IPEX exhibition which contributed £21m to 2006 revenues. The related adjusted operating profit impact for 3GSM was £nil and for IPEX was £7.7m.
- Excludes restructuring and reorganisation costs of £7.7m (2006:£7.2m), and intangible asset amortisation of £99.3m (2006: £83.1m).
- Excludes restructuring and reorganisation costs of £7.7m (2006:£7.2m), non recurring finance costs of £4.6m (2006:£nil), intangible asset amortisation of £99.3m (2006: £83.1m) and profit on disposal of available for sale investments of £33.4m (2006: loss £0.8m).
- Excludes restructuring and reorganisation costs of £7.7m (2006:£7.2m), non recurring finance costs of £4.6m (2006:£nil), intangible asset amortisation of £99.3m (2006: £83.1m), profit on disposal of available for sale investments of £33.4m (2006: loss £0.8m) and related tax of £26.4m (2006:£27.3m).
- Adjusted cash generated by operations divided by adjusted operating profit.
Revenue by |
| Events | 36% |
| Performance Improvement | 20% |
| Copy sales | 14% |
| Subscriptions | 27% |
| Advertising | 3% |
Revenue by
Geography
| United Kingdom | 15% |
| North America | 37% |
| Continental Europe | 29% |
| Rest of the World | 19% |
Revenue by
|
| Academic & Scientific | 30% |
| Professional | 35% |
| Commercial | 35% |
Adjusted Operating
Profit by Division
| Academic & Scientific | 37% |
| Professional | 32% |
| Commercial | 31% |


