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Informa reports sales leap

14.03.07 Philip Jones

Scientific publisher Informa, which owns Taylor & Francis, has recorded revenues above £1bn for the first time in the group's history, thanks to a 42% leap in turnover in 2006. The sales increase was boosted by the firm's acquisition of IIR in 2005. But the group also reported that its books sales rose by 7%.

Overall, group revenue rose to £1,039m from £729.3m a year earlier. Organic revenue growth was more modest, up 8% year on year. Operating profit was £128.3m, up 40% from £91.4m.

Publishing constituted 39% of revenue, £409.0m, in 2006. On a proforma basis revenue was up 8% with subscription sales growing by 7%, copy sales by 11% and advertising revenues by 3%.

Divisionally, the group's Academic and Scientific business saw sales rise 13% (6% organically) to £295.2m from £260.5m, with STM up 14% and Humanities up by 13%. Operating income rose to £77.6m against £65.5m a year earlier--representing growth of 18%, of which 10% was organic. The adjusted operating margin rose to 26.3% from 25.1%, benefiting from a 7% organic increase in books sales as well as the impact of the IIR businesses. 

Peter Rigby, c.e.o., and David Gilbertson, managing director, said: "We set ourselves an ambitious growth target for 2006. We beat it." Both Rigby and Gilbertson now move up at the group, Rigby becomes chairman following the retirement of Richard Hooper on 15th May, with Gilbertson promoted to chief executive.

Hooper said: "Informa has demonstrated repeatedly that we are good at M&A. But of the many pleasing aspects of 2006 I am most satisfied by our underlying growth rate. On a proforma basis revenue increased by 13% and adjusted operating profit by 22%. This proves without doubt that we have built a strong engine for organic growth."  Informa is now four times the size that it was three years ago.

Financial Philip Jones Informa Taylor & Francis

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