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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

Good results could help shift the recent downward trend in the shares
Thursday 25 Nov 2021 Author: Tom Sieber

Euromoney (ERM) £10.02

Loss to date: 9.9%

Original entry point: Buy at £11.12, 7 October 2021

Our ‘buy’ call on media group Euromoney Institutional Investor (ERM) is off to a shaky start, but the better-than-expected set of full year results published on 18 November include reasons to stay positive.

Concern over how mounting Covid cases might impact a recovery in its events business may be behind some of the recent weakness in the share price.

However, the latest results covering 12 months to 30 September saw Euromoney report a 13% rise in adjusted pre-tax profit to £61.4 million, ahead of a consensus forecast of £58.5 million. In a similar vein, the total dividend distribution of 18.2p per share was up 60% on the prior year and exceeded a consensus estimate of 17.1p.

Consultancy Megabuyte commented: ‘A better-than-expected second half performance underlines the increasing demand for its data, analysis and intelligence in key markets.

‘We also expect Euromoney to continue to bolt on subscription-based businesses in line with its 3.0 growth strategy (embedded in workflows, core target industry and solution-centric).

‘Positively, the outlook has notably improved, although with an air of caution around events in the short term.’

SHARES SAYS: You’ll need to be patient with Euromoney. The shares are still a buy. 

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