Centaur Media PLC Trading Statement (1111F)
25 October 2018 - 5:00PM
UK Regulatory
TIDMCAU
RNS Number : 1111F
Centaur Media PLC
25 October 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES
OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014
25 October 2018
Centaur Media Plc
("Centaur " or "the Company")
Trading update and accelerated simplification plan
Centaur, an international provider of market intelligence and
specialist consultancy, is today providing a trading update and
revising its earnings guidance for the full year. The Company is
also announcing a plan to create value for shareholders by
exploring opportunities for further simplification by the
divestment of select businesses.
For the year to 31 December 2018, the Board of Centaur expects
to deliver adjusted operating profit of between
GBP5.0-GBP5.5million which represents year-on-year growth* of 18%
at the mid-point, although this is below current market
expectations. The increase in profits reflects stronger
performances from a number of the group's innovative, leading
brands, notably The Lawyer and Marketing Week's Festival of
Marketing and Mini MBA programme. With all events now complete,
Centaur's exhibitions business has had a good year, and the
financial services division has maintained its profitability at an
increased margin.
Within Centaur's marketing division, both Econsultancy and
MarketMakers have recently experienced delays in concluding certain
enterprise contracts, which had been expected to contribute to 2018
revenues and profits. MarketMakers is expected to increase its
revenues for the full year by 10%. Econsultancy's migration to our
new technology platform has now been completed successfully but the
delays have held back sales, and profits will be impacted.
The Board believes that Centaur has made substantial progress
with its transformation in recent years, lessening its former
reliance on advertising and print, developing subscription revenues
and generating growth through new product development.
In recent months, Centaur has received approaches for a number
of its assets from potential trade and private equity buyers who
recognise the intrinsic value in these businesses, which operate in
fast-changing market segments and where leading brands can fetch
attractive valuations. The Board believes this value is not
reflected in Centaur's current share price.
Following a strategic review, the Board has decided to
accelerate the simplification of the group's structure by exploring
the divestment of select businesses. The Board believes that making
the group less complex will deliver operational benefits, generate
central cost savings and help to focus attention on the leading
brands within the marketing division.
Centaur is appointing advisors to assist the Board in conducting
this process. It is the Board's intention to return surplus cash
from divestments to shareholders in the most tax efficient
manner.
Andria Vidler, Chief Executive, said: "Centaur has made good
progress this year, it has improved its profits, it has strong cash
flow and a solid balance sheet. We will now explore whether
selective divestments could maximise shareholder value within the
medium-term."
*Year-on-year growth is defined as the forecast adjusted
operating profit for 2018 compared with the pro-forma adjusted
operating profit for 2017.Pro-forma 2017 excludes the entire
contribution from the Home Interest division, sold in August 2017,
and includes a full year of MarketMakers, as though it were owned
since 1 January 2017.
Contacts
Centaur Media - 0207 940 4000
Andria Vidler, Chief Executive Officer
Swag Mukerji, Chief Financial Officer
Teneo Blue Rubicon - 020 7420 3144
Paul Durman
Rosie Oddy
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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