Allworld acquisition lifts UBM in first half

The FTSE 250 company said its events revenue increased 2.7% on an adjusted underlying basis in the six months to 30 June, compared to growth of 1.3% in the first half of last year.

“In the first half of the year the focused implementation of the ‘Events First’ strategy has delivered an acceleration in organic growth and an improved operating margin,” said CEO Tim Cobbold.

“The business is well-positioned for stronger organic growth and further margin progression in the second half when we run many of our fastest-growing 'major' annual events.”

Allworld Exhibitions, which UBM acquired in December, was said to be performing “ahead” of the business case, with its integration into the group “on track”.

Adjusted operating profit in the period was up 19.6% at £111.7m, with its adjusted operating profit margin improving to 24.9% from 24.6%.

UBM’s adjusted earnings were ahead 23.6% at £77.5m, with diluted adjusted earnings per share rising 37.3% to 19.5p,

The company’s free cash flow in the first half was £141.9m, with its cash conversion said to be 160%.

Its board said it had secured long-term funding to replace the Allworld acquisition financing, with net debt standing at 2x last-12-months EBITDA.

UBM shareholders would receive an interim dividend of 5.5p per share, the board added.

“We saw strong revenue growth in China, India and South East Asia underlining the logic of the Allworld acquisition, where excellent progress is being made with the integration,” Cobbold said.

“While conscious of global macroeconomic and geopolitical uncertainties, we are confident in the quality of our portfolio and the outlook for the year is therefore unchanged.”

As a result of continuing operational improvement and strong cash flow generation, the full year dividend was likely to grow at a faster rate than in recent years,” Cobbold noted.

“Ahead of the full year results the Board will review the dividend policy for future years.”