UBM Says Profits Will Be As Expected

United Business Media (UBM) is expecting revenue and profits to finish the year in line with expectations, despite the difficult market conditions. In a pre-close trading statement today, chief executive Clive Hollick said the company had achieved a “A satisfactory performance in an exceptionally tough year”, continuing: “The significant reduction in our cost base leaves us well placed for an upturn.”

The programme of cost reduction was begun by the company in August following interim results which revealed a 48% decrease in profit year on year (see UBM Profits Down Nearly 50%). The aim was aimed to save £60m, but, in the statement released today UBM confirmed that the bill for restructuring and exiting surplus properties will actually reach £60m this year.

The statement detailed what it called “resilient” performances at PR Newswire, NOP World and CMP Asia and further cost reductions at CMP Media, PR Newswire and CMP Information. It also mentioned its 35.4% share in Channel 5, saying that the channel had seen a “significant decline” in advertising revenue.

Having lost 20p from its share price during yesterday’s trading, by midday today shares had fallen a further 50˝p or 9.9% to £4.59˝.

United Business Media: 020 7921 5000

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