Business information group Euromoney today reported operating profit down 55 per cent to £27.2m for 2009 on overall revenue down four per cent to £317.6m.
The group reported a pre-tax loss of £17.4m, compared with a profit of £37.4m in 2008.
This statutory figure reflected restructuring costs of £10.7m, which the company said will lead to annual savings of £17m, as well as an impairment charge of £23.2m, amortisation of £15.9m, a foreign exchange loss of £19.9m on ‘tax equalisation contracts’and further foreign exchange loss of £7.9m on ‘restructured hedging arrangements”.
Euromoney is an international business to business information group listed in London which is part of Daily Mail and General Trust. It publishes more than 70 magazines, newsletters and journals including Euromoney, Institutional Investor and Metal Bulletin.
The group said it remains keen to “acquire small, specialist information businesses that complement its existing activities and provide scope for strong organic growth” but that “it does not expect to complete any significant transactions in the next six to 12 months”.
It remains cautious about the wider economic picture.
It said in its preliminary results statement today: “Generally markets seem to have stabilised after an exceptionally volatile and difficult period and the outlook among our customers is more positive than it has been for some time, although this has not yet translated into improved revenues.
“The broad sentiment is that global markets will continue to recover in 2010, but slowly: the risks of further banking failures and a correction to the recent recovery in financial markets remain; the prospects for economic growth in Europe and the United States are likely to be weak for the foreseeable future; and the threat of increased regulation of financial markets will continue to restrict capital availability.
“The return to profitability of most global financial institutions should be a positive factor for trading in 2010. However, the cuts in headcount and the restrictions on discretionary spend on marketing, training and information buying applied throughout 2009 are not expected to be relaxed quickly, and not before the start of our customers’ new budget year in 2010. This means that the board expects that the group’s revenues will continue to decline in the first quarter, a view which is supported by current levels of sales and forward bookings.”