Informa reports solid year as it pivots to more profitable markets

(Sharecast News) - Informa reported a solid set of financial results for 2024 on Thursday, delivering double-digit revenue and profit growth alongside record free cash flow. The FTSE 100 events and business information company said revenue rose 11.4% to £3.55bn, with adjusted operating profit increasing 16.5% to £995m.

Free cash flow grew 28.6% to £812m, supported by strong operational performance and disciplined cash management.

Adjusted diluted earnings per share increased 10.6% to 50.1p, while statutory operating profit rose 6.9% to £542.8m.

The company said it continued its international expansion through the year, shifting its B2B focus towards faster-growing markets in the Americas, the GCC and Asia, which now accounted for around 85% of group revenue.

Informa announced a strategic partnership with Dubai World Trade Centre, creating a joint venture, Informa International, that would consolidate B2B events in the UAE and surrounding markets.

Expected to complete in late 2025, the venture was set to generate over $700m in revenue with operating margins above 30%, adding scale in key growth sectors such as healthcare, aviation, and information security.

Informa reaffirmed strong momentum heading into 2025, with over £1.7bn in revenue already booked, committed or paid.

The company said it was targeting full-year revenue of more than £4.1bn, excluding divested businesses, and expected double-digit earnings growth.

It said its four-year 'One Informa' strategy would focus on expanding its brand portfolio, enhancing customer experience, and deploying AI-driven digital services.

The company maintained its commitment to shareholder returns, increasing its total dividend for the year by 11.1% to 20p per share and executing £425m in share buybacks, bringing total cash returns to £675m.

Informa said it would restart share repurchases in 2025 with an initial commitment of at least £200m.

It ended the year with a net debt-to-adjusted EBITDA ratio of 2.6x, with further deleveraging expected.

The company also advanced its sustainability initiatives, achieving recognition in the Dow Jones Sustainability Index for the seventh consecutive year and maintaining top-tier ESG ratings from MSCI and CDP.

Looking ahead, the firm said it was focussed on structural growth opportunities and further international expansion to drive long-term profitability.

"On every measure, the Informa group delivered an outstanding result in 2024, from revenue growth to higher dividend returns, alongside further International and portfolio expansion - this is a performance we aim to repeat in 2025," said group chief executive officer Stephen Carter.

"Our growth ambitions through the 2025-2028 One Informa period are underpinned by structural growth in B2B events and specialist knowledge, market-leading brands and a geographic mix weighted to fast-growing economies.

"Further scale and opportunity in the increasingly important GCC Growth Gateway is delivered through today's proposed strategic partnership in the UAE."

Reporting by Josh White for Sharecast.com.