For immediate release 29th July 2003
United Business Media plc announces
Interim Results for the six months ended 30 June 2003
STRONG MARGIN INCREASE IN FIRST HALF OF 2003
* EPS* 10.7p (8.9p) up 20 per cent
* Profit before tax * �45.5m (�40.7m) up 12 per cent
* Operating* margin 12.2 per cent (9.1per cent)
* Net cash balances boosted to �118.9m (�93.5m at 31 December 2002)
* Dividend increases to 3.3p (3.0p) up 10 per cent
* Before amortisation of goodwill and prior year exceptional items
Clive Hollick, Chief Executive of United Business Media, said:
"United has delivered a good performance in the first half of 2003 with profit
before tax and earnings per share ahead of last year by 12 per cent and
20 per cent respectively. Although underlying revenues are down 6 per cent
compared with the first half of 2002 there has been a welcome stabilisation in
revenue trends over the last six months and early signs of an improvement in
certain markets in the US. This modest improvement, combined with the
continuing drive for operating efficiencies, has boosted operating margins from
9 per cent last year to 12 per cent this year. �200m of cost savings have now
been secured, this represents approximately 30 per cent of the 2000 fixed cost
base.
"Yields and key market shares have either been maintained or slightly increased
across the group. The level of revenue from new products started in the last
two years increased in the first half year to �17 million. Losses attributable
to new product development increased to �5m (�1m). Cash conversion remains
strong at 105 per cent of operating profits and net cash balances were �118.9
million at 30 June.
"Professional media profits grew by 75 per cent thanks to a return to profit at
CMP in the US and a good improvement in margins at CMPi in the UK, offset by a
fall in the CMP Asia profits following the SARS outbreak. Revenues in the US
have been broadly stable in the last four quarters with improvements in the
reseller technology and healthcare markets offset by continued weakness in
electronics. Market share continues to edge ahead, yields are being maintained
and further reductions in the cost base are being delivered.
"CMPi's profits in the second half will be boosted by the recent acquisitions
of Builder Group, Barbour Index, Property Media and Interior Design Handbook.
In 2004 these acquisitions, which together cost �83m, are expected to
contribute operating profits of �9 million. Margin improvements at Exchange &
Mart and Daltons Weekly helped to lift UAP's profits.
"Trading at CMP Asia is beginning to improve as the SARS outbreak abates. The
total adverse effect on earnings in the first six months was slightly below our
forecast of �8 million before insurance recoveries.
"Our news distribution business, PR Newswire, delivered a good margin increase
on the second half of 2002. After three successive quarters of stable US
message volumes the second quarter of 2003 saw a quarterly increase of almost
10 per cent and a small year on year strengthening of yields.
"NOP World, our market research business, achieved a near doubling of margins
to 11.1 per cent compared with the second half of 2002. There are now early
indications of modest improvements in healthcare revenues and some stability in
the US custom business.
"five (formerly Channel 5) continues to make excellent progress with strong
gains in advertising share. After six years of investment five delivered an
operating profit in the first half of 2003.
"Forward revenue visibility remains limited, but with the recent stabilisation
in revenue trends, some improvement in certain US markets, a gradual return to
normal trading conditions in Asia and the boost to margins from improved
operating efficiencies throughout the group, should deliver an improvement in
United's 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."
SUMMARY PROFIT & LOSS STATEMENT
The group profit and loss statement set out below re-presents the
group's full profit and loss account (which is included in the
attached financial information) in order to show more clearly the
results from operations excluding amortisation of goodwill and prior
year exceptional items.
Restated
(1)
Period Period
ended ended
30 June 30 June Variance
2003 2002
�m �m %
Turnover 344.0 412.8 (16.7)
Operating profit* 42.0 37.4 12.3
Net interest income 6.2 4.3 44.2
Other finance expense (FRS (2.7) (1.0) (170.0)
17)
Profit before tax* 45.5 40.7 11.8
Amortisation of goodwill (53.3) (65.8) 19.0
(7.8) (25.1) 68.9
Exceptional items - (14.0) -
Loss before tax (7.8) (39.1) 80.1
Taxation (10.0) (9.8) (2.0)
Loss on ordinary activities (17.8) (48.9) 63.6
after tax
Equity minority interest 0.3 (1.4) 121.4
Loss for the period (17.5) (50.3) 65.2
Dividends - equity (11.0) (10.1) 8.9
- non-equity (0.3) (0.3) -
(11.3) (10.4) 8.7
Retained loss for the period (28.8) (60.7) 52.6
EPS * (pence) 10.7 8.9 20.2
Basic EPS (pence) (5.3) (15.1) 64.9
Dividend per share 3.3 3.0 10.0
(1) 2002 has been restated to include the impact of adopting FRS17
"Retirement Benefits"
* Before amortisation of goodwill and prior year exceptional items
CONTENTS
1. Summary of Results
2. Divisional Review
3. Dividend
4. Balance Sheets and Cash Conversion
5. Fixed Asset Investments
6. Tax
1. SUMMARY OF RESULTS
Group Turnover Group Operating Profit
Six months to 30 June Six months to 30 June
(�m) (�m)
2003 2002 Change Underlying 2003 2002 Change Underlying
(%) #(%) (%) #(%)
CMP Media 101.8 129.9 (21.6) (10.0) 4.9 (7.3) - -
CMP Asia 14.0 25.5 (45.1) - (0.7) 7.7 - -
CMP 58.7 68.9 (14.8) (8.4) 10.7 6.3 69.8 58.1
Information
UAP 29.5 29.5 - - 8.9 6.9 29.0 19.4
Professional 204.0 253.8 (19.6) (6.8) 23.8 13.6 75.0 160.0
Media
News 48.0 57.5 (16.5) (6.8) 8.0 12.3 (35.0) (30.3)
Distribution
Market 92.0 101.5 (9.4) (2.1) 10.2 11.5 (11.3) (16.1)
Research
Total 344.0 412.8 (16.7) (5.6) 42.0 37.4 12.3 29.9
# Underlying:
- adjusted for the estimated effects of acquisitions, foreign exchange, SARS
and biennial events
Although group revenue was down 16.7 per cent to �344.0m, significant
improvements in operational efficiency secured a 12.3 per cent increase in
operating profits. The operating margin increased to 12.2 per cent from 9.1 per
cent in the first half of 2002.
The underlying decline in group turnover was only 5.6 per cent, with the
reported number having been depressed by foreign exchange (�31m), SARS (�9m),
business closures (�6m) and biennial exhibitions (�4m).
The sterling / US dollar exchange rate has a translation impact upon
consolidation. For the six month period a 1 cent movement in the US dollar
against sterling was equivalent to a move in profit of between �100,000 and �
200,000.
2. DIVISIONAL REVIEW
Professional Media
Turnover Operating Profit
Six month periods Six month periods
(�m) (�m)
2003 2002 2002 2003 2002 2002
H1 H2 H1 H1 H2 H1
CMP Media 101.8 108.3 129.9 4.9 0.5 (7.3)
CMP Asia 14.0 25.6 25.5 (0.7) 6.0 7.7
CMP Information 58.7 58.7 68.9 10.7 3.8 6.3
UAP 29.5 28.6 29.5 8.9 5.8 6.9
Total 204.0 221.2 253.8 23.8 16.1 13.6
Total Professional Media revenue was �204.0m, down 19.6 per cent on H1 2002.
Operating profit was �23.8m, up 75.0 per cent on H1 2002, with cost reductions
driving this improvement and CMP Media in particular turning a loss of �7.3m
into a �4.9m profit despite a decline in revenue of �28.1m. The total
divisional operating margin of 11.7 per cent represents a significant
improvement on 5.4 per cent in H1 2002 and 7.3 per cent in H2 2002.
CMP Media
The 21.6 per cent decline in CMP Media's revenues was more than offset by cost
savings and CMP Media delivered a half year operating profit of �4.9m.
Over the first six months of 2003 CMP Media's continuing titles again increased
their market share of advertising page volumes, up to 29.4 per cent (from 27.5
per cent), and also increased yields by 1.5 per cent.
Overall the conditions in CMP's technology marketplace broadly stabilised in
late 2002 / early 2003, although there are different trends in each of CMP's
product areas with the Channel market consistently strong - revenue up 11 per
cent - and, at the other end of the scale, Electronics was consistently weak -
revenue down 23.2 per cent. Both the Channel area and online - across the
division - performed ahead of plan in H1 2003. CMP Media new product
development activity continued with Optimize generating over $1.5m in the
period, and the Institute for Partner and Educational Development making
significant progress and being ahead of budget
Approximately 10 per cent of CMP Media's revenues come from its Healthcare
division and this was its strongest growth area in the first half, with
revenues up 14 per cent. Sales demand is good and new initiatives made a solid
contribution with Continuing Medical Education (CME) teleconferences continuing
to receive requests for proposals and performing ahead of budget.
CMP Asia
The adverse earnings impact of SARS was slightly below our previous estimate.
The Spring 2003 Leather Fair in Hong Kong was cancelled with a full refund to
customers and several other exhibitions were postponed. The June Jewellery Fair
went ahead, although inevitably with lower levels of attendance.
New launches continued and included a Jewellery trade fair in Shenzhen, beauty
trade and natural health publications in Japan and also two beauty trade
conferences in New York. These shows and publications generated US $2.3m in new
revenue. Events launched in 2002 in Bangkok, Tokyo and China continued to grow
in 2003.
CMP Information
The overriding theme of the performance at CMPi* has been one of major
improvement in margins leading to profitability growth of 70 per cent or �4.4m.
CMPi revenue of �58.7m (�68.9m) was 14.8 per cent down on 2002 because of
closures and also a biennial effect. Half of the underlying fall of 8.4 per
cent related to the weakness of the Network Telecoms show which is now under
review. The extensive programme of initiatives to improve operational
efficiencies generated an operating margin of 18.2 per cent (9.1 per cent) and
enabled CMPi to grow profit to �10.7m (�6.3m).
The first half of the year also saw the completion of two acquisitions - the
remaining 50% of Property Media and the purchase of Interior Design Handbook -
the integration of both has since been completed according to plan.
Last week UBM announced the acquisition of Builder Group and Barbour Index for
�79m. These will be integrated into CMPi, and together with Property Media and
the Interior Design Handbook have significantly strengthened CMPi's leadership
position in the UK construction and design market.
Organic initiatives included several successful exhibitions - Technology for
Marketing, ACPO and FI China - which between them generated well over �2m in
revenue.
* CMPi results (and prior period comparatives) now include CMP Europe following
the transfer from CMP Media at the start of 2003.
UAP
UAP delivered another strong performance with operating profit up almost 30 per
cent at �8.9m due to increased operating efficiencies and an improved margin of
30.2 per cent (23.4 per cent).
Revenue at �29.5m was the same as in 2002 as gains at Daltons Weekly, Private
Villas, Trader, Trade It and online properties offset weaker performances at
Auto Exchange and the Computer titles.
Organic initiatives included DaltonsBusiness.com, the early success of which
contributed significantly to growth in online revenues across the business of
over 70 per cent.
PR Newswire - News Distribution
Turnover Operating Profit
Six month periods Six month period
(�m) (�m)
2003 2002 2002 2003 2002 2002
H1 H2 H1 H1 H2 H1
PR Newswire 48.0 47.9 57.5 8.0 5.0 12.3
Further action on costs delivered a 60 per cent improvement in profitability on
the second half of 2002. In addition, a sustained period of stability was
followed in the second quarter of 2003, by indications of improvements in core
US message volumes and revenues.
Revenue at �48.0m was the same as in the second half of 2002, but down on the
first half of 2002. Operating profit improved from �5.0m in H2 2002 to �8.0m in
H1 2003, a margin improvement from 10.4 per cent to 16.7 per cent.
America
Core US message volumes reached a high of 49k in the second quarter of 2002 and
then declined to 42k in each of the following three quarters. The second
quarter of 2003 then saw an improvement to 46k with June volumes up 3.7 per
cent on June 2002. M&A, IPO and new product announcements all improved in May
and June .
Growth in organic initiatives such as MultiVu and Online MediAtlas (OMA) offset
declines in mature services such as Broadcast Fax.
Rest of the World
Overall PR Newswire's businesses outside America improved to break even in the
first half of 2003. Total revenue from organic initiatives, Disclose, OMA and
News Monitoring was up by 33 per cent.
NOP World - Market Research
Turnover Operating Profit
Six month periods Six month periods
(�m) (�m)
2003 2002 2002 2003 2002 2002
H1 H2 H1 H1 H2 H1
NOP World 92.0 111.5 101.5 10.2 6.4 11.5
Operating profit increased from �6.4m in H2 2002 with NOPW achieving �10.2m in
the first half of 2003. The margin performance at NOPW was strong with the
first half delivering 11.1 per cent, double H2 2002 and in line with H1 2002.
Mediamark Research (MRI)
MRI, NOP World's largest profit contributor, is performing slightly ahead of
expectations with both revenue and profit ahead of the first half of 2002. The
core National Study product delivered both higher renewal rates and new
business.
Allison-Fisher (AFI)
Revenues in the first half were 28 per cent ahead of the same period last year.
The majority of calendar year renewals have now been booked and the organic
initiatives (international product expansions) are well under-way and
anticipated to meet full year objectives.
NOP Research Group
In a challenging environment, NOP Research increased marketing and sales
activity and generated sufficient new business to hold revenue close to the
levels in H1 2002.
A weak first quarter was followed by a good second quarter. NOP's strengths in
Financial, Business and Mystery Shopping were offset by some weakness in
Automotive and Healthcare. Investments included a Mystery Shopping organic
initiative.
RoperASW
Conditions in RoperASW's US markets (custom, consumer trends and retail
markets) remained flat in the first half of the year, although there have been
some more positive indications in the technology market. Consequently revenues
are still down on H1 2002 but - boosted by better than expected operating
efficiency gains - RoperASW improved its profit on the first half of 2002.
Market Measures Cozint (MMC) / Strategic Marketing Corporation (SMC)
These Healthcare businesses continue to operate in a difficult market but the
drug approval pipeline appears to be improving. Both saw a significant
deterioration in the second half of 2002. SMC is showing healthy revenue and
profit progress, benefiting from increased numbers of drug approvals and from
an upgraded sales and marketing programme whilst MMC was down on H1 2002 and is
addressing structural issues in its product offering. In particular sales of
the Global Tracking business have been strong.
3. DIVIDEND
An interim dividend of 3.3 pence per share for 2003 will be paid. This is in
line with the Board's dividend policy announced in December 2001.
The interim dividend will be paid on 23 October to shareholders on the register
on 15 August.
4. BALANCE SHEET AND CASH CONVERSION
Net cash balances at the end of the period were �118.9m. Operating cash
conversion was 105 per cent of operating profits.
Group capital expenditure was held to �3.3m during the period (compared with �
10.9m in 2002), well below the level of depreciation at �9.5m. Cash outflows
for the period included �4.3m of additional funding for five. Cash was boosted
by net tax receipts of �7.6m in respect of prior periods.
In June the group purchased a total of 100,000 ordinary shares in the market
for cancellation.
5. FIXED ASSET INVESTMENTS
UBM holds investments in five, ITN, SIS, SDN, Paperloop and the Press
Association. five revenue grew 7.1 per cent, its audience share held firm at
6.6 per cent, and its share of advertising revenue increased from 7.3 per cent
to 7.8 per cent.
Income from investments of �3.2m includes dividends received from SIS and ITN.
6. TAX
The effective tax rate in H1 2003 was 21.9 per cent against 24.0 per cent in H1
2002.
- ENDS -
For further information please contact:
For United Business Media enquiries:
Michael Waring United Business Media 020 7921 5031
Colin Browne The Maitland Consultancy 020 7379 5151
Nick Molden United Business Media 020 7921 5097
Notes to Editors:
United Business Media plc (http://www.unitedbusinessmedia.com) is a
leading provider of business information services to the technology,
healthcare, media, automotive and financial services industries. UBM offers
services in market research, consultancy, news distribution, publishing and
events to customers across the globe. Its brands include NOP World, one of the
largest market research groups globally; PR Newswire, the world's leading
corporate news distribution service and CMP, the B2B media and exhibition group
operating in high-tech, healthcare, property, entertainment jewellery
& fashion in the US, UK, Asia and Europe.
This press release includes statements which are not historical facts and are
considered "forward-looking" within the meaning of Section 27 of the Securities
Act of 1933, as amended. These forward-looking statements reflect UBM's current
views about future events, business and growth strategy and financial
performance. These forward-looking statements are identified by their use of
terms and phrases such as "believe," "expect," "plan," "anticipate," "on
target" and similar expressions identifying forward-looking statements.
Investors should not rely on forward-looking statements because they are
subject to a variety of risks, uncertainties and other factors that could cause
actual results to differ materially from UBM's expectations. UBM expressly does
not undertake any duty to update forward-looking statements. Management does
not attempt to update forecasts unless conditions materially change.
Group profit and loss account
for the six months ended 30 June 2003
Six months ended 30 June 2003 Six months ended 30 June 2002
As restated As restated
Before Exceptional Before Exceptional
Notes exceptional items exceptional items As
items (note 2) Total items (note 2) restated
�m �m �m �m �m Total
�m
Turnover - group and
share of joint
ventures
Continuing operations 354.3 - 354.3 425.4 - 425.4
Acquisitions 1.4 - 1.4 - - -
355.7 - 355.7 425.4 - 425.4
Less: share of joint (11.7) - (11.7) (12.6) - (12.6)
ventures' turnover
Group turnover 344.0 - 344.0 412.8 - 412.8
Group operating loss
Continuing operations (15.7) - (15.7) (32.3) - (32.3)
Acquisitions 0.2 - 0.2 - - -
Group operating loss (15.5) - (15.5) (32.3) - (32.3)
Share of operating -
profit in joint 3 1.0 - 1.0 0.5 0.5
ventures and
associates
Income from other fixed 3.2 - 3.2 3.4 - 3.4
asset investments
Total operating loss (11.3) - (11.3) (28.4) - (28.4)
Loss on sale and
closure of businesses
Discontinued operations - - - - (14.0) (14.0)
Loss on ordinary
activities before (11.3) - (11.3) (28.4) (14.0) (42.4)
interest
Net interest income 4 6.2 - 6.2 4.3 - 4.3
Other finance expense (2.7) - (2.7) (1.0) - (1.0)
Loss on ordinary (7.8) - (7.8) (25.1) (14.0) (39.1)
activities before tax
Tax on loss on ordinary (10.0) - (10.0) (9.8) - (9.8)
activities
Loss on ordinary (17.8) - (17.8) (34.9) (14.0) (48.9)
activities after tax
Equity minority 0.3 - 0.3 (1.4) - (1.4)
interests
Loss for the period (17.5) - (17.5) (36.3) (14.0) (50.3)
Dividends - equity 7 (11.0) (10.1)
- non-equity 7 (0.3) (0.3)
7 (11.3) (10.4)
Retained loss for the (28.8) (60.7)
period
Earnings/(loss) per
share
before amortisation of 5 10.7p 8.9p
intangible assets and
exceptional items
basic 5 (5.3)p (15.1)p
diluted 5 (5.3)p (15.1)p
Group profit and loss account
for the six months ended 30 June 2003
Year ended 31 December 2002
As restated As restated
Before Exceptional
Notes exceptional items As
items (Note 2) restated
�m �m Total
�m
Turnover - group and share of
joint
ventures
Continuing operations 819.2 - 819.2
Acquisitions - - -
819.2 - 819.2
Less: share of joint ventures' (25.8) - (25.8)
turnover
Group turnover 793.4 - 793.4
Group operating loss
Continuing operations (83.0) (144.2) (227.2)
Acquisitions - - -
Group operating loss (83.0) (144.2) (227.2)
Share of operating profit in joint
ventures and 3 1.6 - 1.6
associates
Income from other fixed asset 10.4 - 10.4
investments
Total operating loss (71.0) (144.2) (215.2)
Loss on sale and closure of
businesses
Discontinued operations - (14.0) (14.0)
Loss on ordinary activities before
interest (71.0) (158.2) (229.2)
Net interest income 4 10.1 - 10.1
Other finance expense (2.1) - (2.1)
Loss on ordinary activities before (63.0) (158.2) (221.2)
tax
Tax on loss on ordinary activities (16.0) - (16.0)
Loss on ordinary activities after (79.0) (158.2) (237.2)
tax
Equity minority interests (1.8) - (1.8)
Loss for the period (80.8) (158.2) (239.0)
Dividends - equity 7 (23.6)
- non-equity 7 (0.6)
7 (24.2)
Retained loss for the period (263.2)
Earnings/(loss) per share
before amortisation of intangible 5 16.5p
assets and exceptional items
basic 5 (71.6)p
diluted 5 (71.6)p
Analysis of turnover
for the six months ended 30 June 2003
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Group Group Group
share share share
Group of joint Group of joint Group of joint
�m ventures �m ventures �m ventures
�m �m �m
Turnover by division
Continuing
operations:
CMP Media 101.8 4.2 129.9 4.2 238.2 9.0
CMP Asia 14.0 1.6 25.5 1.8 51.1 3.6
CMP Information 57.3 1.2 68.9 2.0 127.6 4.5
United Advertising 29.5 - 29.5 - 58.1 -
Publications
Professional media 202.6 7.0 253.8 8.0 475.0 17.1
News distribution 48.0 4.7 57.5 4.6 105.4 8.7
Market research 92.0 - 101.5 - 213.0 -
Continuing operations 342.6 11.7 412.8 12.6 793.4 25.8
Acquisitions:
CMP Information 1.4 - - - - -
Acquisitions 1.4 - - - - -
Turnover 344.0 11.7 412.8 12.6 793.4 25.8
by geographic market
United Kingdom 110.8 1.2 119.3 2.0 216.6 4.5
North America 217.9 8.5 266.8 8.5 502.2 17.0
Europe and Middle 4.4 0.4 3.5 0.3 28.1 0.7
East
Pacific 10.9 1.6 23.2 1.8 46.5 3.6
Turnover 344.0 11.7 412.8 12.6 793.4 25.8
Analysis of activities
for the six months ended 30 June 2003
Six months ended 30 June 2003
Group
share Exceptional
Group of joint Subtotal items Total
�m ventures �m �m �m
�m
Operating profit/ (loss) before
amortisation of
intangible assets by division
Continuing operations:
CMP Media 4.8 0.1 4.9 - 4.9
CMP Asia (0.9) 0.2 (0.7) - (0.7)
CMP Information 10.4 - 10.4 - 10.4
United Advertising Publications 8.9 - 8.9 - 8.9
Professional media 23.2 0.3 23.5 - 23.5
News distribution 6.5 1.5 8.0 - 8.0
Market research 10.2 - 10.2 - 10.2
Continuing operations 39.9 1.8 41.7 - 41.7
Acquisitions:
CMP Information 0.3 - 0.3 - 0.3
Acquisitions 0.3 - 0.3 - 0.3
Operating profit before amortisation 40.2 1.8 42.0 - 42.0
of intangible assets
Amortisation of intangible assets (52.5) (0.8) (53.3) - (53.3)
Operating (loss)/ profit by division
Continuing operations:
CMP Media (18.0) (0.2) (18.2) - (18.2)
CMP Asia (7.7) 0.2 (7.5) - (7.5)
CMP Information (3.9) - (3.9) - (3.9)
United Advertising Publications 8.5 - 8.5 - 8.5
Professional media (21.1) - (21.1) - (21.1)
News distribution 4.1 1.0 5.1 - 5.1
Market research 4.5 - 4.5 - 4.5
Continuing operations (12.5) 1.0 (11.5) - (11.5)
Acquisitions:
CMP Information 0.2 - 0.2 - 0.2
Acquisitions 0.2 - 0.2 - 0.2
Operating loss (12.3) 1.0 (11.3) - (11.3)
Non-operating exceptional items -
Net interest and other financial 3.5
income
Loss on ordinary activities before (7.8)
tax
by geographic market
United Kingdom 8.4 - 8.4 - 8.4
North America (9.0) 1.1 (7.9) - (7.9)
Europe and Middle East (2.8) (0.3) (3.1) - (3.1)
Pacific (8.9) 0.2 (8.7) - (8.7)
Operating loss (12.3) 1.0 (11.3) - (11.3)
Non-operating exceptional items -
Net interest and other financial 3.5
income
Loss on ordinary activities before (7.8)
tax
Analysis of activities
for the six months ended 30 June 2003
Six months ended 30 June 2002
Group
share Exceptional
Group of joint Subtotal items Total
�m ventures �m �m �m
�m
Operating profit/ (loss) before
amortisation of
intangible assets by division
Continuing operations:
CMP Media (7.4) 0.1 (7.3) - (7.3)
CMP Asia 7.5 0.2 7.7 - 7.7
CMP Information 6.2 0.1 6.3 - 6.3
United Advertising Publications 6.9 - 6.9 - 6.9
Professional media 13.2 0.4 13.6 - 13.6
News distribution 10.8 1.5 12.3 - 12.3
Market research 11.5 - 11.5 - 11.5
Continuing operations 35.5 1.9 37.4 - 37.4
Acquisitions:
CMP Information - - - - -
Acquisitions - - - - -
Operating profit before amortisation -
of intangible 35.5 1.9 37.4 37.4
assets
Amortisation of intangible assets (64.4) (1.4) (65.8) - (65.8)
Operating (loss)/ profit by division
Continuing operations:
CMP Media (40.0) (0.9) (40.9) - (40.9)
CMP Asia 0.7 0.2 0.9 - 0.9
CMP Information (6.6) 0.1 (6.5) - (6.5)
United Advertising Publications 6.4 - 6.4 - 6.4
Professional media (39.5) (0.6) (40.1) - (40.1)
News distribution 8.4 1.1 9.5 - 9.5
Market research 2.2 - 2.2 - 2.2
Continuing operations (28.9) 0.5 (28.4) - (28.4)
Acquisitions:
CMP Information - - - - -
Acquisitions - - - - -
Operating loss (28.9) 0.5 (28.4) - (28.4)
Non-operating exceptional items (14.0)
Net interest and other financial 3.2
income
Loss on ordinary activities before (39.2)
tax
by geographic market
United Kingdom (0.9) 0.2 (0.7) - (0.7)
North America (25.1) 0.5 (24.6) - (24.6)
Europe and Middle East (1.6) (0.4) (2.0) - (2.0)
Pacific (1.3) 0.2 (1.1) - (1.1)
Operating loss (28.9) 0.5 (28.4) - (28.4)
Non-operating exceptional items (14.0)
Net interest and other financial 3.2
income
Loss on ordinary activities before (39.2)
tax
Analysis of activities
for the six months ended 30 June 2003
Year ended 31 December 2002
Group
share Exceptional
Group of joint Subtotal items Total
�m ventures �m �m �m
�m
Operating profit/ (loss) before
amortisation of intangible
assets by division
Continuing operations:
CMP Media (7.3) 0.5 (6.8) (11.3) (18.1)
CMP Asia 13.6 0.1 13.7 (0.7) 13.0
CMP Information 9.9 0.2 10.1 (5.8) 4.3
United Advertising Publications 12.7 - 12.7 (0.8) 11.9
Professional media 28.9 0.8 29.7 (18.6) 11.1
News distribution 14.3 3.0 17.3 (4.1) 13.2
Market research 17.9 - 17.9 (7.3) 10.6
Continuing operations 61.1 3.8 64.9 (30.0) 34.9
Acquisitions:
CMP Information - - - - -
Acquisitions - - - - -
Operating profit/ (loss) before 61.1 3.8 64.9 (30.0) 34.9
amortisation of intangible assets
Amortisation of intangible assets (133.7) (2.2) (135.9) (114.2) (250.1)
Operating (loss)/ profit by division
Continuing operations:
CMP Media (71.3) (0.7) (72.0) (71.3) (143.3)
CMP Asia (0.5) - (0.5) (0.7) (1.2)
CMP Information (17.5) 0.2 (17.3) (5.8) (23.1)
United Advertising Publications 11.7 - 11.7 (0.8) 10.9
Professional media (77.6) (0.5) (78.1) (78.6) (156.7)
News distribution 8.9 2.1 11.0 (21.3) (10.3)
Market research (3.9) - (3.9) (44.3) (48.2)
Continuing operations (72.6) 1.6 (71.0) (144.2) (215.2)
Acquisitions:
CMP Information - - - - -
Acquisitions - - - - -
Operating loss (72.6) 1.6 (71.0) (144.2) (215.2)
Non-operating exceptional items (14.0)
Net interest and other financial 8.0
income
Loss on ordinary activities before (221.2)
tax
by geographic market
United Kingdom (27.6) 0.5 (27.1) (24.6) (51.7)
North America (54.5) 1.9 (52.6) (112.4) (165.0)
Europe and Middle East 12.5 (0.8) 11.7 (7.2) 4.5
Pacific (3.0) - (3.0) - (3.0)
Operating loss (72.6) 1.6 (71.0) (144.2) (215.2)
Non-operating exceptional items (14.0)
Net interest and other financial 8.0
income
Loss on ordinary activities before (221.2)
tax
Group balance sheet
at 30 June 2003
30 June 30 June 31 December
2003 2002 2002
�m �m �m
Fixed assets
Intangible assets 385.5 649.2 442.7
Tangible assets 60.7 79.0 67.3
Investments in joint ventures:
- share of gross assets 18.9 19.9 17.2
- share of gross liabilities (7.2) (4.7) (4.4)
11.7 15.2 12.8
Investments in associated undertakings 0.2 0.2 0.2
Other investments 172.1 160.7 169.5
630.2 904.3 692.5
Current assets
Stocks 24.1 23.5 16.6
Debtors 163.7 200.5 163.3
Investments - 1.9 1.5
Short term liquid funds 521.3 463.1 594.8
Cash at bank and in hand 177.3 272.2 96.7
886.4 961.2 872.9
Creditors: amounts falling due within one (604.7) (632.3) (605.9)
year
Net current assets 281.7 328.9 267.0
Total assets less current liabilities 911.9 1,233.2 959.5
Creditors: amounts falling due after more
than one year
Bank and other loans (327.5) (406.0) (338.5)
Other creditors (8.2) (9.3) (13.3)
Convertible debt (237.1) (258.6) (245.0)
(572.8) (673.9) (596.8)
Provisions for liabilities and charges (70.4) (31.2) (58.5)
Net assets excluding pension liability 268.7 528.1 304.2
Pension liability (90.9) (41.0) (90.9)
Net assets 177.8 487.1 213.3
Capital and reserves
Called up share capital 84.5 96.1 84.5
Share premium account 308.5 308.3 308.5
Merger reserve 31.3 31.3 31.3
Other reserves 167.8 156.2 167.8
Profit and loss account (414.9) (106.5) (380.8)
Shareholders' funds (including non-equity 177.2 485.4 211.3
interests)
Equity minority interests 0.6 1.7 2.0
Capital employed 177.8 487.1 213.3
Equity shareholders' funds 176.6 473.2 210.7
Non-equity shareholders' funds 0.6 12.2 0.6
Shareholder' funds 177.2 485.4 211.3
Group cash flow statement
for the six months ended 30 June 2003
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002 �m
�m �m
Net cash inflow from operating activities 30.2 20.2 55.5
Dividends received from joint ventures 0.4 0.3 0.9
and associates
Returns on investment and servicing of 4.9 (1.4) 15.2
finance
Taxation 7.6 14.4 15.3
Capital expenditure and financial (3.2) (15.3) (22.1)
investment
Payments relating to prior year disposals - (25.0) (19.0)
Acquisitions and disposals (4.3) - (1.4)
Equity dividends paid to shareholders (13.4) (3.4) (13.5)
Net cash inflow/ (outflow) before use of
liquid resources 22.2 (10.2) 30.9
and financing
Management of liquid resources (26.6) 201.2 222.0
Net cash (outflow)/ inflow before (4.4) 191.0 252.9
financing
Financing
Issue of ordinary share capital - 2.7 2.9
Return of capital to shareholders (0.3) (0.2) (7.4)
Redemption of convertible bond - (164.0) (164.0)
Decrease in bank loans - - (47.8)
Repayment of loan stock (0.7) (18.4) (23.6)
Financing (1.0) (179.9) (239.9)
(Decrease)/ increase in cash in the (5.4) 11.1 13.0
period
Reconciliation of net cash flow to
movement in net cash
(Decrease)/ increase in cash in the (5.4) 11.1 13.0
period
Cash outflow from decrease in debt and 0.7 182.4 235.4
financing
Cash outflow/ (inflow) from decrease/ 26.6 (201.2) (222.0)
(increase) in liquid resources
Changes in net cash resulting from cash 21.9 (7.7) 26.4
flows
Other non cash movements (0.8) (1.2) (6.2)
Translation difference 4.3 10.0 24.0
Movement in net cash in the period 25.4 1.1 44.2
Opening net cash 93.5 49.3 49.3
Closing net cash 118.9 50.4 93.5
Reconciliation of operating loss to net cash inflow
from operating activities
Operating loss (11.3) (28.4) (215.2)
Depreciation charges 9.5 12.1 23.2
Amortisation of intangible assets - group 52.5 64.4 247.9
Share of results of joint ventures (1.0) (0.5) (1.6)
Income from other fixed asset investments (3.2) (3.4) (10.4)
Other finance expenses (2.7) (1.0) (2.1)
Profit on sale of tangible fixed assets - - 0.4
Payments against provisions (9.8) (7.9) (14.9)
Net increase in working capital:
- payments against restructuring and (1.3) (15.4) (20.2)
other exceptional costs
- other movements in working capital (2.7) 2.3 16.3
Other non-cash items including movements 0.2 (2.0) 32.1
on provisions
Cash inflow from operating activities 30.2 20.2 55.5
Statement of group total recognised gains and losses
for the six months ended 30 June 2003
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002 �m
�m �m
Loss for the financial period (17.5) (50.3) (239.0)
Currency translation differences on
foreign currency investments:
Group (4.9) (19.3) (32.5)
Joint ventures (0.1) (0.1) (0.9)
Actuarial loss recognised in the pension - - (50.6)
schemes
Other recognised losses for the year (5.0) (19.4) (84.0)
Total recognised losses for the year (22.5) (69.7) (323.0)
Prior year adjustment - implementation of - (48.9) (48.9)
FRS 17 (see note 1)
Total recognised losses relating to the (22.5) (118.6) (371.9)
period
The historical cost loss for the financial period is not materially different
from the reported loss.
Reconciliation of movements in group shareholders' funds
for the six months ended 30 June 2003
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002 �m
�m �m
Opening shareholders funds 211.3 611.9 611.9
Prior year adjustment - implementation of - (48.9) (48.9)
FRS 17 (see note 1)
211.3 563.0 563.0
Loss for the financial period (17.5) (50.3) (239.0)
Equity dividends (11.0) (10.1) (23.6)
Non-equity dividends on `B' shares - see (0.3) (0.3) (0.6)
below
182.5 502.3 299.8
Other recognised (losses)/ gains relating (5.0) (19.4) (84.0)
to the period
New share capital subscribed - 2.7 2.9
Return of capital to shareholders (0.3) (0.2) (7.4)
Closing shareholders' funds 177.2 485.4 211.3
At 30 June 2003, the company has 7,546,387 B shares outstanding (30 June 2002:
10,480,642; 31 December 2002: 7,546,387). These arose from the return of
capital to shareholders in April 2001. B shares receive a continuing dividend
linked to LIBOR. The company has indicated that it will periodically offer to
repurchase B shares at 245p per share.
On 27 June 2003, the company repurchased and cancelled 100,000 ordinary shares
at �2.93 per share.
Notes
1. Basis of preparation
The interim report for the six months ended 30 June 2003 has been prepared on
the basis of accounting policies set out in the 2002 Annual Report and
Accounts.
The group adopted FRS 17 "Retirement Benefits" in the 2002 Annual Report and
Accounts. The adoption of the standard represents a change in accounting policy
and the comparative figures have been restated accordingly. Details of the
effect of adopting FRS 17 are given in the Statement of group total recognised
gains and losses.
2. Exceptional items
Six months Six months Year ended
ended 30 ended 30 31 December
June 2003 June 2002
�m 2002 �m
�m
Charged to operating profits:
Continuing operations
Restructuring costs - - (30.0)
Goodwill impairment - - (114.2)
Continuing operations - - (144.2)
(Charged)/credited to profit before tax:
Payments relating to prior year - (14.0) (14.0)
disposals
Total credited to profit on ordinary - (14.0) (158.2)
activities before tax
Tax on exceptional items - - -
Exceptional items in 2002 included additional provisions for vacant properties,
goodwill impairment and settlement of an outstanding legal claim relating to
the planned merger with Carlton Communications plc in 2000 and the subsequent
sale of the group's television businesses.
3. Share of operating profit in joint ventures and associates
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002
�m �m �m
Joint ventures and associates 1.8 1.9 3.8
-continuing
Amortisation of intangible assets (0.8) (1.4) (2.2)
1.0 0.5 1.6
4. Net interest income/ (expense)
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002
�m �m �m
Group 6.2 4.3 10.1
Joint ventures and associates - - -
6.2 4.3 10.1
Interest receivable includes �4.5 million (six months ended 30 June 2002: �4.3
million; year ended 31 December 2002: �8.8 million) of interest receivable from
Channel 5 Television Group in respect of shareholder loans.
5. Earnings/(loss) per share
Six months ended Six months ended Year ended
30 June 2003 30 June 2002 31 December 2002
Earnings Earnings Earnings
Earnings / (loss) Earnings / Earnings /
/ (loss) per / (loss) (loss) / (loss)
�m share �m per (loss) per
pence share �m share
pence pence
Profits before amortisation
of intangible assets and 35.8 10.7 29.5 8.9 55.1 16.5
exceptional items
Adjustment in respect of
amortisation of intangible (53.3) (16.0) (65.8) (19.8) (135.9) (40.7)
assets
Adjustment in respect of
exceptional items:
- charged to operating - - - - (144.2) (43.2)
profits
- payments relating to - - (14.0) (4.2) (14.0) (4.2)
prior year disposals
Basic (17.5) (5.3) (50.3) (15.1) (239.0) (71.6)
Diluted (17.5) (5.3) (50.3) (15.1) (239.0) (71.6)
Basic loss per share is calculated on the loss attributable to shareholders of
�17.5 million (June 2002: loss of �50.3 million; December 2002: loss of �239.0
million) and on 335,515,353 shares (June 2002: 333,561,961; December 2002:
333,773,282) being the weighted average number of shares in issue during the
period.
For diluted earnings per share, the weighted average number of shares in issue
is adjusted to assume conversion of all dilutive potential ordinary shares. The
group has three categories of dilutive potential ordinary shares: those share
options granted to employees where the exercise price is less than the average
market price of the company's ordinary shares during the year, those shares
which may be issued under the LTIP and shares attributable to convertible debt.
No adjustment has been made for the dilutive impact, as this would increase
reported earnings per share.
6. Foreign exchange
The trading results of overseas subsidiaries, joint ventures and associated
companies were translated into sterling at an average of the exchange rates
ruling for the period. This resulted in a weighted average rate of exchange in
respect of the US dollar for the period of $1.61 : �1 (six months ended 30 June
2002: $1.46 : �1; year ended 31 December 2002: $1.51 : �1). The balance sheets
of overseas subsidiaries, joint ventures and associated companies were
translated into sterling at the period end rate of exchange in respect of the
US dollar of $1.67 : �1 (six months ended 30 June 2002: $1.52 : �1; year ended
31 December 2002: $1.61 : �1).
7. Dividends
Six months Six months Year ended
ended 30 ended 30 31 December
June June 2002
2003 2002
�m �m �m
Equity dividends (11.0) (10.1) (23.6)
Non-equity dividends - B shares (0.3) (0.3) (0.6)
Dividends (11.3) (10.4) (24.2)
An interim dividend of 3.3 pence per ordinary share (2002: 3.0 pence) will be
payable on 23 October 2003 to shareholders on the register at close of business
on 15 August 2003.
The non-equity dividends relate to the LIBOR linked dividend on B shares.
8. Acquisitions and disposals
On 22 April 2003, the 50% shareholding in Property Media Limited not already
owned by the group was acquired for �2.75m in cash.
On 14 May 2003, Kenrick Place Media Limited was acquired for �1.6m in cash.
9. Post balance sheet events
On 22 July 2003, Aprovia UK was acquired for �79m in cash. Aprovia UK owns The
Builder Group, a UK construction publisher and event organizer, and Barbour
Index, an information services provider to professionals in the UK construction
and health and safety sectors.
10. Status of financial information
The figures for the year ended 31 December 2002 (which do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act 1985)
have been extracted from the Annual Report and Accounts which have been filed
with the Registrar of Companies; the auditors opinion on those accounts was
unqualified and did not contain a statement under section 237 of the Companies
Act 1985.
The interim financial information was approved by a duly appointed and
authorised committee of the board of Directors on 29 July 2003. It is unaudited
but has been reviewed by the auditors as set out in their report.
Independent review report to United Business Media plc
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 June 2003 which comprises a group profit and loss
account, statement of group total recognized gains and losses, group balance
sheet as at 30 June 2003, group cash flow statement, comparative figures and
associated notes. We have read the other information contained in the interim
report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.
This report is made solely to the company in accordance with guidance contained
in Bulletin 1999/4 'Review of interim financial information' issued by the
Auditing Practices Board. To the fullest extent permitted by the law, we do not
accept or assume responsibility to anyone other than the company, for our work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/
4 'Review of interim financial information' issued by the Auditing Practices
Board for use in the United Kingdom. A review consists principally of making
enquiries of group management and applying analytical procedures to the
financial information and underlying financial data, and based thereon,
assessing whether the accounting policies and presentation have been
consistently applied, unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities
and transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a
lower level of assurance than an audit. Accordingly we do not express an audit
opinion on the financial information.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 June 2003.
Ernst & Young LLP
London
29 July 2003
END
