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magazineEuromoney excels with first half numbers
Euromoney (ERM) £13.76
Gain to date: 17.4%
Original entry point: Buy at £11.72, 20 December 2018
Media outfit Euromoney (ERM) continues to justify our faith as a key pick for 2019 as results for the six months to 31 March came in ahead of expectations at the adjusted earnings level.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) came in at £46.2m against a forecast £40m amid a reduction in costs. The main driver of growth was the price and data business which is the main reason we find the investment case compelling.
The asset management arm, made up of the publication Institutional Investor as well as BCA investment research, saw revenue fall 3%, compared with the 5% slide reported for the same period a year ago.
Finance director Wendy Pallot tells Shares modest investment on the marketing side for the asset management business contributed to the slowing decline.
As Pallot points out, if the company could turn this business from a negative contributor to performance to a point where it was holding steady, this could make a big difference to the way the group as a whole is perceived by the market.
Numis analyst Steve Liechti notes: ‘Now fully independent, Euromoney can drive its focused growth strategy with full financial flexibility, a broader more liquid shareholder base, and strong management team. Net balance sheet cash and strong cash flow give strategic options.’
SHARES SAYS: Encouraging results. Keep buying.
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