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Monday, November 30, 2020

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  • Informa plc swings to a pre-tax loss of £801.2 million in the first half.
  • The British multinational posts £814.4 million of revenue in the fiscal H1.
  • The London-based firm now forecasts £1.7 billion in annual revenue.

Informa plc (LON: INF) lowered its guidance for annual revenue on Monday as the Coronavirus pandemic disrupted operations and pushed it into a pre-tax loss in the fiscal first half. The company also warned that it was likely to breach its private placement debt in the United States.  

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The British multinational now forecasts its full-year revenue to print at about £1.7 billion, down from £2.0 billion that it had predicted earlier this year in June. Analysts anticipate Informa to register £1.73 billion of revenue in fiscal 2020. In its June estimate, Informa had forecast a 33% hit to its revenue due to the COVID-19 crisis.

Informa eyes £600 million of annual savings

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The London-based firm expressed plans of expanding cost-management in a bid to hit over £600 million of savings by the end of the year. Informa also said on Monday that event-postponement will now stay in place until spring (mid-to-late) of 2021.

At £801.2 million, the events and publishing group said that its pre-tax loss in the first six months of the ongoing financial year came in significantly worse than £232.8 million of profit in the same period last year.

In terms of adjusted operating profit in H1, Informa reported £118.9 million versus the year-ago figure of £435.2 million. The FTSE 100 listed firm also posted £814.4 million of revenue in the fiscal first half. In the comparable period of 2019, it had generated a much higher revenue of £1.41 billion.

Experts’ forecast for the fiscal first half

In comparison, experts had forecast Informa to print £759.9 million of revenue in H1 on £68.6 million of adjusted operating profit. JP Morgan Cazenove downgraded its rating on Informa plc to ‘neutral’ last week from ‘overnight’.

Shares of the company were reported about 2.5% up in premarket trading on Monday. On market open, however, the stock lost roughly 6% to hit an intraday low of 368 pence per share. On a year to date basis, Informa plc is now more than 55% down in the stock market. Confused about choosing a reliable stockbroker to trade online? Here’s a list of a top few to make selection easier for you.

Informa performed largely upbeat in the stock market last year with an annual gain of about 40%. At the time of writing, it is valued at £5.53 billion and has a price to earnings ratio of 22.17.

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