British events and publishing group Ascential plc (LON:ASCL) has achieved earnings and revenue growth in line with its expectations in its first full year results to be published since floating last February.
The company, formerly known as Top Right Group, posted adjusted underlying earnings (EBITDA) from continuing operations of £95.9mln in the year to 31 December 2016, compared to £76.6mln a year earlier.
The figures exclude the group’s 13 discontinued Heritage magazine titles, including Drapers, Architects’ Journal and Nursing Times. The sell-off leaves Ascential with just one print title, Retail Week, which complements digital brands Planet Retail and recently acquired One Click Retail.
“Following the treatment of the Heritage Brands as discontinued, the most significant change over the last year has been a reduction in print advertising which now represents less than 1% of group revenue (2015: 4%),” the company said.
Ascential, jointly owned by Apax Partners and Guardian Media Group, said revenue from continuing operations rose to £299.6mln from £256.6mln, boosted by the launch of new products including WGSN Insight, Money 20/20 Europe and Lions Entertainment.
Revenue within the exhibitions and festivals division rose to £180mln from £180mln while the information services business increased to £119.6mln from £106.2mln.
The company recommended a final dividend of 3.2p, bringing the total dividend for the year of 4.7p.
Post-period, the company announced earlier this month it was buying US-based media consultancy MediaLink for $69mln. Ascential believes MediaLink, which sets up meetings and events, will complement its Cannes Lions international advertising festival.
“While still early in 2017, we are encouraged by the current level of forward bookings and solid performances at events that have already taken place,” said chief executive Duncan Painter.
Numis reiterated a ‘buy’ rating and raised its target price to 375p from 350p, saying it was “good set of 2016” that exceeded its expectations and the outlook in 2017 was “encouraging”.
“The net impact is an expected pre-tax profit/earnings per share in 2017 estimates for continuing operations of £90.8m/17p rising to £102.9m/18.7p in 2018,” the broker said.
“We push up multiples a little to reflect the quality and higher growth potential of continuing operations, the net result our target rises to 375p (previous 350p). Ascential remains a key large cap pick for us in 2017.”
Shares fell 2.25% in afternoon trade to 299.20p.