(Adds divisional detail)
LONDON (Thomson Financial) - United Business Media Plc. said trading is
modestly ahead of its expectations and the group remains confident of the
prospects for the full year.
The publishing and events group said in a trading update that it is still
generating a strong trading performance through strong brands and effective
management, despite macro-economic uncertainty and volatile conditions in some
of its markets.
By division, the group said first-half revenue growth at its PR Newswire
business is expected to be lower than growth over the full year as the group
lost market share because of disruptions from bureau consolidation.
Margins will also be hit by investment in upgraded editorial systems and
delivery processes.
In response to the loss of market share, the group has increased resourcing
and focus on sales and customer management, and said "we are confident that the
business will re-establish a greater level of momentum in the second half".
Face-to-face events at the group's CMP Information, which account for around
60 percent of the divisions revenue, continue to perform well.
The group reported a robust performance at CMP Asia, with events continuing
to perform well although there has been a slowdown in parts of the group's
Japanese business.
The company has been restructuring its CMPMedica business as part of a
turnaround plan, implementing new management and reorganising the U.S. business.
These changes have made a positive impact and the restructuring is
progressing in line with UBM's plan.
The company said there is weakness in certain areas of print display
advertising but the business is experiencing growth in branded custom and online
services.
In February UBM indicated that it expected CMPMedica's results for 2008 to
be well ahead of 2007, and the business's performance in the year to date
"continues to support this expectation".
UBM has also reorganised its technology business into four operations, which
the company said has enabled the new management to drive revenue and profit
growth through greater focus.
The acquisitive company, which has spent 25 million pounds so far this year
on buying up smaller companies, said it has seen a slowdown in the number of
private businesses up for sale in the current markets, although it is still
considering a number of potential acquisitions worldwide.
The group's debt position has not changed significantly since the year-end,
with net-debt at March of 170 million pounds, adding its balance sheet remains
strong.
kathy.sandler@thomsonreuters.com
ks/slj
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