Informa says trading strong and bid talks continue

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Informa says trading strong and bid talks continue

28/07/2008 08:22

LONDON (Reuters) - Publishing and events group Informa Plc posted first-half profit and revenue slightly ahead of forecasts on Monday and said bid talks with its private equity suitors were continuing.

The company also said trading continued to be strong and the outlook for the full year remained in line with the board’s expectations, as it reported revenue up 18 percent at 627.6 million pounds.

Adjusted profit before tax for the six months to June was up 10 percent at 104.7 million pounds.

Analysts had expected revenue of 595 million pounds and adjusted pretax profit of 101 million according to a Reuters poll of three brokers and four brokers respectively.

The group also raised its interim dividend by 9 percent.

"We are pleased with the strong start we have made to the year," Chairman Derek Mapp said. "Our results are underpinned by the high volume of subscription income and the resilient performance of our branded large scale exhibitions and conferences.

"Our ability to convert profits into cash remains extremely strong and we are trading well within our banking covenants. We remain confident of the group’s full-year prospects."

Mapp added that he was delighted with how some assets were performing in the tougher economic conditions.

Informa said on July 2 it was considering a 2.15 billion pound bid approach from Providence Equity LLP, The Carlyle Group and Hellman & Friedman, with the firms proposing an offer of 506 pence per share.

Informa said on Monday the talks continued and it would give a further update in due course.

(Reporting by Kate Holton; Editing by David Holmes)

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