Euromoney Institutional Investor (LON: ERM) shares have had a strong run in the two months since I wrote about them. They had risen by nearly 200p each and it was inevitable there would some profit-taking, but the decline was overdone.

The 52p a share fall to 1360p appears to be partly based on the reported drop in interim profit. However, that was due to a one-off disposal gain in the corresponding period last year.


These are the first figures since Daily Mail & General Trust distributed its 49% stake to its shareholders.

Revenues dipped from £189.1m to £184.9m but operating margin was maintained. The sale of the Indaba mining conference and the ending of another event hit revenues. Underlying events revenues grew by 3%, offsetting a decline in advertising revenues.

Pre-tax profit edged up from £45.6m to £46.1m, helped by a reduction in interest costs. Two-thirds of operating profit are in dollars.

Net cash was £29.3m at the end of March 2019. The interim dividend was raised by 6% to 10.8p a share. The forecast yield is 2.4%.


Pre-tax profit is still on course to exceed £100m this year and the shares are trading on 18 times prospective earnings.

Cash generation is set to continue to be strong and Euromoney has a good portfolio of publishing brands. Even though the price has risen Euromoney is still an attractive long-term investment – particularly after the post-interims share price fall.