Euromoney Institutional Investor PLC (LON: ERM) have updated shareholders with a positive outlook, saying that 2019 financial results will be slightly above board expectations.
The company provides market data, market intelligence and pricing to both global and specialist markets.
The firm also added that ‘the company is making good progress on its previously announced strategic review’ which will please shareholders.
Earlier this year, Euromoney were set to conduct a strategic review of its Asset Management division.
This division compromises of the Institutional Investor, BCA Research and NDR Business.
The FTSE250 listed firm (INDEXFTSE: MCX) plans to report the businesses as discontinued operations and as assets held for sale for the year ended September 30.
The firm added that adjusted revenue is expected to be £401 million, with flat underlying revenue.
Adjusted revenue in financial 2018 was £414.1 million, with underlying revenue of £388.4 million.
Adjusted pretax profit for financial 2019 is expected to be £104 million compared to £109.2 million the year before.
The results come at a positive time for Euromoney after a volatile period for the S&P (INDEXSP: .INX) was caused by Brexit negotiations and US-China relations.
“This reflects a continuation of good growth in the Pricing, Data & Market Intelligence segment, with underlying revenue up approximately 4% and approximately 10% growth in Fastmarkets subscriptions, ” the London-headquartered company said
“Asset Management continued to face challenges and saw revenue decline by approximately 4% on an underlying basis. Banking & Finance, our smallest segment which accounted for 15% of the group’s revenues, was down by approximately 1%. BoardEx has now been fully integrated with strong underlying growth of approximately 11% year-on-year,” Euromoney added.
Underlying pretax profit for the current year is expected to be 9% higher than the £100.6 million reported the year before, which gives a positive outlook for both seniority and shareholders.
In a note to clients, analysts at Peel Hunt increased their target price for Euromoney to 1,495p from 1,475p and retained their ‘add’ rating, saying that following the review of asset management a sale of the segment was now “the most probable outcome”.
The bullish trading update saw stocks climb 1.03%, trading at 1372p per share. 5/11/19
