UBM Profits Rise 12% In H1, Ahead Of Expectations
Profits at United Business Media (UBM) made a surprise jump of 12% in the first half of the year as a result of a stabilisation in revenue trends and improvements in some markets in the US.
The 12% pre-tax profit rise to £45.5 million was significantly ahead of Merrill Lynch’s prediction of £31.4 million and the broker has upgraded its forecasts for UBM’s full year figures on the basis of this performance. However, revenue declined fairly heavily over the half, 17% down at £344 million. Underlying revenues, excluding the impact of the SARS virus were down by 5.6%.
Outlook UBM’s chief executive, Clive Hollick, today said that forward revenue visibility remains limited, although there has been a recent stabilisation in revenue trends, some improvement in certain US markets and a gradual return to normal trading conditions in Asia.
Hollick is expecting that UBM will deliver an improvement in year on year performance in the second half of 2003. “We plan to increase the level of investment in new products and make acquisitions which strengthen our core business and meet our demanding financial criteria,” he said.
Shares in the group jumped after the release of the figures and were up by 12.2% to 385p at 10.30am today.
