Strong Visibility and Attractive Cash Flow Dynamics
Informa has visible and predictable revenue streams, with a large proportion of annual income booked in advance through subscriptions or forward bookings for events, which generates highly attractive cash flow characteristics.
-
Cash Conversion %
-
Free Cash Flow (£M)
2015 Conversion of Adjusted Profit into Cash
| |
2015 | 2014 |
| £m | £m |
| Adjusted operating profit |
365.6 |
334.0 |
| Depreciation of property and equipment |
6.1 |
6.1 |
| Software and product development amortisation |
12.8 |
12.1 |
| Share-based payments |
2.6 |
1.7 |
| Loss on disposal of other assets |
0.1 |
- |
| Adjusted share of joint venture results |
0.1 |
0.1 |
| Adjusted EBITDA |
387.3 |
354.0 |
| Net capital expenditure |
(33.5) |
(14.7) |
| Working capital movement |
23.9 |
(15.5) |
| Operating cash flow |
377.7 |
323.8 |
| Restructuring and reorganisation |
(19.2) |
(21.0) |
| Net interest |
(26.7) |
(26.0) |
| Taxation |
(30.7) |
(44.3) |
| Free cash flow |
301.1 |
232.5 |
| Acquisitions and disposals |
(149.1) |
(372.8) |
| Dividends paid to Shareholders |
(126.0) |
(114.0) |
| Dividends paid to non-controlling interest |
(0.5) |
(0.9) |
| Net shares (acquired)/issued |
(0.4) |
204.1 |
| Net funds flow |
25.1 |
(51.1) |
| Non-cash movements |
(1.2) |
(2.4) |
| Foreign exchange |
(43.0) |
(40.1) |
| Net debt at 1 January |
(876.2) |
(782.6) |
| Net debt at 31 December |
(895.3) |
(876.2) |
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Net Debt Analysis and Current Debt Structure
Informa is committed to maintaining a robust and flexible financing framework during the 2014-2017 Growth Acceleration Plan. This is designed to ensure the Group has sufficient liquidity to invest in the business, pursue a targeted acquisitions strategy and meet a commitment to grow dividends by a minimum of 4% per annum in 2016 and 2017 while maintaining a net debt / EBITDA ratio of between 2.0 to 2.5 times.
| |
2015 | 2014 |
| £m | £m2 |
| Cash at bank and in hand |
(34.3) |
(38.6) |
| Bank overdraft |
2.0 |
3.3 |
| Loans receivable |
(0.3) |
- |
| Private placement loan notes |
574.6 |
462.2 |
| Private placement fees |
(1.6) |
(1.2) |
| Bank borrowings - revolving credit facility |
365.6 |
334.0 |
| Bank loan fees |
(4.2) |
(4.7) |
| Net debt |
895.3 |
876.2 |
Summary of Debt Instruments
Informa is funded by a mix of bank facilities and US private placement loan notes.
- The core bank facility was arranged in October 2014 and is a committed five year, £900m multi-currency revolving credit facility. It was extended by a further year in 2015, meaning it now matures in October 2020
- The Group had £574.6m of private placement loan notes at 31 December 2015 (31 December 2014: £462.2m) ranging in maturity from December 2017 to October 2025. The average maturity length of the loan notes is 5.5 years (2014: 4.3 years) at a weighted average interest rate of 4.3% (2014: 4.3%).
The currency profile of borrowings is maintained to approximate the Group's assets. The two main financial covenants under the bank facility and the private placement notes are a maximum gearing ratio and minimum interest cover.
Debt Maturity Profile
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-
Since 2010, the Company’s leverage has been within its 2.0x – 2.5x target range
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Informa plans to maintain its leverage within the target range during the implementation of the Growth Acceleration Plan
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Informa has committed to pay a minimum of 4% annual growth in Dividends per Share for 2016 and 2017
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Informa currently has a NAIC-2 designation which was last reaffirmed in September 2014
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