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Euromoney Ins.InvPLC (ERM)

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Wednesday 29 November, 2000

Euromoney Ins.InvPLC

Final Results

Euromoney Institutional InvestorPLC
29 November 2000

                     Euromoney Institutional Investor PLC

                           Preliminary announcement

Operating profits of Euromoney Institutional Investor PLC, the international
media group, rose 27% to a record £40.7 million in the year to September 30,
before new media investment and goodwill amortization. Turnover rose by 14% to
£192 million, also a record.

New media investment rose from £3.7 million to £8.2 million. After charging
this, and goodwill amortization of £5.5 million, net profit before tax was £
22.6 million, the same as last year.

The directors recommend a final dividend of 9.75p, making a total of 14.75p, a
record, against 13.75p.

Diluted earnings a share were 16.2p against 17.3p, while adjusted diluted
earnings a share increased by 10% to 22.2p. All earnings and dividend figures
have been adjusted to reflect the company's four-for-one share split in July.

While profits in the first half recovered strongly, driven largely by cost
savings implemented in 1999, the recovery in revenues was held back by a
patchy recovery from the financial markets crisis of 1998. Growth in the
second half was much stronger, with revenues increasing 20% to £108 million,
helped by a strong US dollar and the performance of new businesses.

Profits from international financial publishing increased by a third to £21.4
million. Both Euromoney and Institutional Investor demonstrated the strengths
of their brands in their respective markets, recovering well from 1999, and
finishing close to their previous records. Traffic on increased
sharply during the year. Corporate Finance, Euroweek and Project Finance also
performed well while titles exposed to regional markets, particularly
Asiamoney and Latin Finance, continued to suffer.

The international business publishing division increased profits 6% to nearly
£10 million. Engel, the pharmaceutical publishing business, continued its
impressive record with a 55% increase in profits. Petroleum Economist's
profits recovered sharply and World Link had an excellent result following a
record Davos millennium issue. Profits of the legal publishing business fell
in the second half because of a reorganization.

Training was the best performing division with profits nearly doubling to £6.7
million after a slow first half. Financial training's revenues and profits
improved significantly across all its markets, after a difficult 1999. MIS,
the US-based technology training business, increased profits nearly 38% to £
2.2 million, benefiting from customers' increased focus on the security issues
and risks from the internet. The 3% increase in profits from conferences and
seminars would have been greater but for start-up losses from the launch of
three additional membership groups and a new conference stream at
Institutional Investor.

In total, the group invested £9.4 million in the year in new businesses, all
of which was charged against profits. Most of the investment was in new media,
particularly Internet Securities, the emerging markets information service
acquired in 1999.

The performance of ISI has been encouraging since the management team has been
strengthened: net new annual subscription sales totalled £1.8 million compared
to £1.1 million in 1999 and year-on-year revenue growth was 20%. The excellent
subscriber retention rate improved further and usage by customers nearly
doubled. During the second half ISI also completed two small acquisitions
which should help revenue growth this year.

Investment in other new media has largely focused on using existing content to
create new products or add value to existing services. Examples include, a global online directory of people in financial markets,, a news and database service covering marketing and research
and development in the pharmaceutical industry, and, a
marketing and research database for investment managers. The group spent £1.2
million launching new products in traditional media, including four new
business magazines and a number of newsletters and journals from Institutional

At September 30, net debt was £73.5 million, an increase of £7.8 million since
last year-end, of which £7.7 million was due to the fall in the year-end US
dollar rate. The company spent £7.3 million increasing its investments in MIS,
Mondiale and Business Traveller, while a further £6.3 million was invested in
ISI to cover acquisitions, new businesses and operating losses. In September,
the group arranged fresh banking facilities in tandem with Daily Mail &
General Trust plc, which owns 71% of the company.

The initial outlook for 2001 appears encouraging. Revenues for the first three
months, although traditionally the least important quarter of the year, are
showing further growth compared to the same period last year when the recovery
in financial markets was still patchy. Investments in new media are expected
to continue at a similar level to last year.

Padraic Fallon


November 28 2000

For further information please contact,

Padraic Fallon Chairman 020 7779 8556 020 7779 8556

Richard Ensor Managing Director 020 7779 8844

Colin Jones Finance Director 020 7779 8666

or visit our website at

Euromoney Institutional Investor PLC

Group Profit and Loss Account for the year ended September 30
                                                               2000   1999
                                                               £000's £000's

Continuing operations                                        192,122 168,237
Discontinued operations                                          -         6
                                                             192,122 168,243

Operating profit before goodwill amortization
Continuing operations                                        32,541 28,605
Discontinued operations                                         -     (172)
                                                             32,541 28,433

Goodwill amortization on acquisitions                       (5,500) (3,446)

Operating profit
Continuing operations                                       27,041  25,159
Discontinued operations                                          -    (172)
                                                            27,041  24,987
Share of operating profit in associates                        165     416
Profit on sale of discontinued operations                      179     893
Net interest payable and similar charges                    (4,782) (3,727)

Profit on ordinary activities before tax                    22,603  22,569
Tax on profit on ordinary activities                        (7,218) (7,184)
Profit on ordinary activities after tax                     15,385  15,385

Equity minority interests                                   (1,100)  (322)
Profit for the year attributable to members of the parent   14,285  15,063
Dividends paid and proposed                                (12,930) (11,934)

Profit retained for the year                                 1,355    3,129

Basic earnings per share                                     16.35p 17.37p

Diluted earnings per share                                   16.16p 17.32p

Adjusted diluted earnings per share 
before goodwill amortization                                 22.18p 20.25p
and exceptional items

Dividend per share                                           14.75p 13.75p

Euromoney Institutional Investor PLC

Group Balance Sheet at September 30
                                                            2000           1999
                                                                    As restated
                                                          £000's         £000's

Fixed assets
Intangible assets                                         25,799         21,958
Tangible assets                                            7,657          8,239
Investments                                                  472          1,417
                                                          33,928         31,614

Current assets
Debtors                                                   40,423         33,942
Cash at bank and in hand                                  28,540         13,776
                                                          68,963         47,718

Creditors: amounts falling due within one year        (49,437)         (51,608)

Net current assets/(liabilities)                        19,526         (3,890)

Total assets less current liabilities                   53,454         27,724
Creditors: amounts falling due after one year         (101,816)        (73,816)
Provisions for liabilities and charges                 (2,512)          (3,628)
Deferred income                                       (38,123)         (32,760)
                                                      (88,997)         (82,480)

Capital and reserves
Called up share capital                                     219          219
Share premium account                                    33,578        32,582
Capital redemption reserve                                    8             8
Profit and loss account                                (123,749)     (115,610)

Equity shareholders' deficit                            (89,944)      (82,801)
Equity minority interests                                    947          321
                                                        (88,997)      (82,480)

Euromoney Institutional Investor PLC

Group Cash Flow Statement for the year ended September 30
                                                                  2000     1999
                                                                £000's   £000's

Net cash inflow from operating activities                       33,856   32,599

Dividends received from associated undertakings                      -      348

Returns on investments and servicing of finance
Interest received                                                1,289    1,683
Interest paid                                                  (6,120)  (5,141)
Dividends paid to minorities                                   (1,013)  (1,419)
                                                               (5,844)  (4,877)

UK tax paid                                                    (3,244)  (7,939)
Overseas tax paid                                              (1,218)  (2,582)
UK tax received                                                     29     123
Overseas tax received                                              406     280
                                                               (4,027) (10,118)

Capital expenditure
Purchase of tangible fixed assets                              (2,353)  (2,299)
Sale of tangible fixed assets                                      189     155
                                                               (2,164)  (2,144)
Acquisitions and disposals
Purchase of unincorporated businesses                          (1,053)      -
Purchase of subsidiary undertakings                                  - (20,656)
Purchase of additional interests in subsidiary undertakings    (7,611)    (227)
Purchase of other investments                                        -    (216)
Cash acquired with subsidiary undertakings                           -       52
Proceeds on sale of subsidiary undertaking                         179      743
Sale of other investments                                          721       -
                                                               (7,764) (20,304)

Equity dividends paid                                         (11,979) (12,000)

Cash inflow/(outflow) before financing                           2,078 (16,496)

Issue of new ordinary share capital                                996     786
Redemption of secured loan stock                               (4,495)  (1,093)
Cash from /(paid into) escrow                                    4,482    (882)
Bank loans repaid                                              (1,000)    (318)
Revolving credit facilities:
     Increase in borrowings                                    145,510  39,589
     Repayment of borrowings                                 (126,130) (28,558)
Payment on forward hedge                                       (3,201)       -
                                                                16,162   9,524
Increase/(decrease) in cash during the year                     18,240  (6,972)

Euromoney Institutional Investor PLC

Notes to the Preliminary Announcement

1.     Basis of Preparation

The financial information set out in this announcement does not constitute the
company's statutory accounts for the years ended September 30 2000 or 1999 but
is derived from those accounts. Statutory accounts for 1999 have been
delivered to the Registrar of Companies, and those for 2000 will be delivered
following the company's annual general meeting. The auditors have reported on
those accounts; their reports were unqualified and did not contain statements
under section 237(2) or (3) of the Companies Act 1985.

The financial information for the year ending September 30 2000 has been
prepared in accordance with the accounting policies set out in the group's
1999 Annual Report, except for a reclassification of deferred income from
creditors to the face of the balance sheet in order to present a fairer
picture of the group's financial position.

2. Turnover
                                                        2000         1999
    Turnover by activity                                £000's       £000's
    International financial publishing                  73,570       67,770
    International business publishing                   39,406       36,223
    Training                                            35,024       30,056
    Conferences and seminars                            33,268       27,454
    Databases and information services                  10,854        6,734
    Discontinued operations                                  -            6
                                                       192,122      168,243

                                                        2000            1999
    Turnover by destination                             £000's          £000's
    United Kingdom                                      31,193          24,635
    North America                                       78,953          64,224
    Rest of World                                       81,976          79,384
                                                       192,122         168,243

                                                        2000            1999
    Turnover by source                                  £000's          £000's
    United Kingdom                                      91,969          77,895
    North America                                       80,898          73,225
    Rest of World                                       19,255          17,123
                                                       192,122         168,243
 3. Operating profit

By activity                                             2000         1999
                                                       £000's       £000's
International financial publishing                     21,447       16,095
International business publishing                       9,946        9,408
Training                                                6,720        3,413
Conferences and seminars                                7,060        6,841
Databases and information services                     (5,753)      (1,800)
Discontinued operations                                     -         (172)
Unallocated corporate costs                            (6,879)      (5,352)
                                                       32,541       28,433
Less: amortization of goodwill                         (5,500)      (3,446)
                                                       27,041       24,987

Euromoney Institutional Investor PLC

3.     Operating profit (continued)

By source                                             2000                1999
                                                    £000's              £000's
UK                                                  17,708              15,080
North America                                       11,809              12,474
Rest of World                                        3,024                 879
                                                    32,541              28,433

4.     Taxation charge

The overall tax charge reflects the tax allowable amortization of goodwill
arising in the USA.

5.     Earnings per share

The earnings per share calculation follows the provisions of FRS14, Earnings
per Share, after calculating the dilution effect of the full exercise of all
ordinary share options granted by the company to employees. Adjusted diluted
earnings per share (before amortization of goodwill and exceptional items) are
calculated on profit before amortization of goodwill and profit on sale of
discontinued operations and on a weighted average of 88,403,000 ordinary
shares (1999 - 86,978,000) in issue during the year in accordance with FRS 14.

6.     Dividend

Warrants in respect of the final dividend will be posted on January 19 2001 to
shareholders on the register on December 15 2000. It is expected that the
shares will be marked ex-dividend on December 11 2000.