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UBM Says Profits Will Be As Expected

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 issued today, chief executive Clive Hollick said the company had achieved a “satisfactory performance in an exceptionally tough year,” adding that, the ‘significant reduction’ in UBM’s cost base leaves it 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 Profits Halve At UBM After US Hi-Tech Advertising Slump). The aim was aimed to save £60 million, but UBM today confirmed that the bill for restructuring and exiting surplus properties will actually reach £60 million 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 50½p or 9.9% to 459½p.

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