Informa Reports Strong 2024 Results with Double-Digit Revenue Growth
Why we think this is good
Informa has delivered a strong performance in 2024, with double-digit revenue growth and improved profitability. The company reported an 11.4% increase in revenue to £3,553.1m and a 16.5% rise in adjusted operating profit to £995.0m. Underlying revenue growth was robust at 11.6%, with all divisions contributing positively. The adjusted operating margin improved from 26.8% to 28.0%, indicating enhanced operational efficiency. Free cash flow saw a significant increase to £812.1m, demonstrating strong cash generation. While net debt has increased, this appears to be primarily due to strategic acquisitions. The outlook for 2025 is positive, with the company targeting 5%+ underlying revenue growth and double-digit growth in Group Revenue and Adjusted Diluted Earnings Per Share. However, the increase in net debt and a decrease in statutory diluted EPS from 29.9p to 22.2p are points of caution. The company faces execution risks related to recent acquisitions and potential market risks in the enterprise technology sector. Overall, the company's strong performance, improved margins, and positive outlook support a GOOD sentiment rating, despite these challenges.
Key Points
- Revenue increased 11.4% to £3,553.1m with 11.6% underlying growth
- Adjusted operating profit up 16.5% to £995.0m
- Adjusted operating margin improved to 28.0% from 26.8%
- Free cash flow increased to £812.1m from £631.7m with over 100% operating cash conversion
- Net debt rose to £3,201.8m due to acquisitions, with strong liquidity of £1,534.3m available
- Positive outlook for 2025 with 5%+ underlying revenue growth expected
- Strategic partnership announced to create Informa International in the UAE
- Dividend per share increased to 20.0p from 18.0p
- Share buyback program to resume with initial minimum £200m+ in 2025
- Execution risks related to recent acquisitions and potential market risks in enterprise technology sector
Summary
Informa plc has reported strong results for 2024, with revenue up 11.4% to £3,553.1m and adjusted operating profit increasing 16.5% to £995.0m. The company saw underlying revenue growth of 11.6% across all divisions, with organic growth driving performance. Recurring revenue streams, particularly in subscriptions and exhibitor bookings, provide stability. Adjusted operating margin improved to 28.0% from 26.8%, and free cash flow increased significantly to £812.1m with over 100% operating cash conversion. The company maintains strong liquidity with £1,534.3m available and unutilized committed financing facilities of £1,050.0m. However, net debt increased to £3,201.8m, largely due to acquisitions. The outlook for 2025 is positive, with expectations of 5%+ underlying revenue growth and double-digit growth in Group Revenue and Adjusted Diluted Earnings Per Share. Informa faces execution risks related to recent acquisitions (Ascential, TechTarget) and potential market risks in the enterprise technology sector. The company is targeting further deleveraging in 2025, with the leverage ratio expected to move within the target range of 1.5x to 2.5x. Informa also announced a strategic partnership in the UAE to create Informa International, expanding its presence in the fast-growing GCC region.