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Euromoney Ins.InvPLC (ERM)

  Print      Mail a friend       Annual reports

Wednesday 24 November, 2004

Euromoney Ins.InvPLC

Final Results

Euromoney Institutional InvestorPLC
24 November 2004

Investor PLC

Preliminary Announcement
September 30 2004

Chairman's Statement

                              2004 Profits* up 31%

Highlights                                                                  2004         2003         change

Turnover                                                                    £174.7   m   £158.9   m   +10%
Profit before tax, goodwill and exceptional items*                          £28.0    m   £21.3    m   +31%
Profit before tax                                                           £20.5    m   £7.4     m   +177%
Adjusted diluted earnings a share*                                          26.7     p   20.5     p   +30%
Earnings a share                                                            18.2     p   4.6      p   +293%
Dividend                                                                    15.00    p   14.75    p   +2%
Net debt                                                                    £62.5    m   £67.1    m   -7%

Euromoney Institutional Investor PLC, the international publishing, events and electronic information group,
reports a profit before tax and goodwill amortization and exceptional items of £28 million in the year to
September 30, against £21.3 million for the previous 12 months. Adjusted diluted earnings a share* were 26.7p
against 20.5p in 2003.

The directors recommend a final dividend of 10p, against 9.75p, making a total of 15p, against 14.75p for the
previous year.

Profit before tax was £20.5m, against £7.4m, and earnings a share increased from 4.6p to 18.2p.
Second half performance improved on the first, with a better than expected increase in revenues. September in
particular was a strong month and accounted for a third of the year's profit*.

The profits of many of the group's publishing businesses fell due to weak advertising revenues and the decline
in the US dollar. However, advertising revenues showed signs of recovery in the second half and there was a
continued strong performance from the events and training businesses. After a first half improvement in profits*
of £1.9m to £11.1m, second half profits rose £4.8m to £16.9m.

Full year revenues were 10% ahead of last year at £174.7m, compared to a 5% increase at the half year. The weak
US dollar has had a significant impact on revenues. The average dollar rate for the year was 1.81 against 1.61
in 2003, a 12% depreciation. This reduced revenues by £14.5m.

In general, the group's traditional financial advertisers have been slow to increase their advertising spend in
spite of better market conditions. Financial advertising revenues, excluding Hedge Fund Intelligence (HFI), fell
4%. Institutional Investor was the only major title to increase advertising revenues over the year although
Euromoney, with its best September issue for five years, saw a marked improvement in the second half. Both
titles were helped by strong performances from emerging markets, particularly Eastern Europe and Asia. In
contrast, the recovery in advertising from the key London and New York financial centres has been slow.

The weakness in advertising meant that profits* from financial publishing (excluding HFI) fell by £1 million.
However HFI, acquired in August 2003, has performed well ahead of expectations since acquisition through a
combination of strong organic growth across all its products, and the launch of new events and its US hedge fund
magazine, Absolute Return. As a result, HFI's profits* have exceeded the level necessary to trigger the maximum
deferred consideration under the acquisition agreement and a final payment of £5.5 million will be made in
January 2005.

Profits* from business publishing increased £0.9m despite a £2m fall in revenues. Most of the improvement came
from the reduction in losses at Business Traveller following its restructuring in 2003. Advertising revenues
from business publishing fell over the year, but increased in the second half. Gulf, the Houston-based energy
publisher, the legal publishing business, and Engel, the pharmaceutical marketing publisher, all experienced a
strong second half advertising recovery.

The conference businesses had an excellent year, helped by a better than expected contribution of £1.8m from
Information Management Network (IMN). Excluding IMN, conference revenues increased 25% and profits* rose £3.5m
to £10.2m. Euromoney Conferences was the best performer, increasing profits* through a combination of expanding
existing events and the launch of new ones, particularly in Asia. Euromoney Seminars and Institutional Investor
Memberships also had good years. Adhesion's profits* increased as a result of a good contribution in the first
half from the biennial Vinisud wine exhibition.

The results of the last three years have demonstrated the value of conference businesses, particularly ones that
are predominantly sponsor-driven, as a more robust revenue stream than advertising. This has reinforced the
group's strategy of expanding its portfolio of market-leading annual events through a mixture of organic and
acquisition growth. The acquisition of IMN in February 2004 was part of that strategy and IMN's performance
since acquisition has exceeded expectations. IMN is the world leader in events for the securitization and
indexation sectors. It made a profit* of £1.8 million on revenues of £5.9 million in the seven months since
acquisition, and traditionally makes more than 60% of its profits during the group's first half. The next
deferred consideration payment under the acquisition agreement is due in March 2005 and is expected to exceed $8

The group's training businesses also had an excellent year, continuing the growth begun in 2003. The businesses
benefited from continued investment in new courses and marketing to increase delegate numbers. Revenues
increased by 11% to £22.1 million, and profits* improved nearly £1 million to £4.9 million. The financial and
legal training businesses depend heavily on the performance of the global and emerging market financial
institutions. Both have increased hiring and training budgets during the year which, combined with an improved
travel outlook, have helped trading conditions.

Profits* from databases and information services increased by £0.6m to £3.4 million. The group's capital market
databases, run as joint ventures with Dealogic, continued to grow despite tough markets. The group's weekly
financial newspaper, Euroweek, is working closely with Dealogic to launch a new database for the securitization
market, as well as other news products.

Stronger emerging markets helped ISI, the electronic information service on emerging markets, to one of its best
sales periods for several years. Subscription revenues increased by 14% and in October 2004 annualized ISI
subscription revenues passed $20 million. This revenue growth is gradually translating into profit growth
despite the weak US dollar. During the year, ISI expanded its service to cover a further 15 countries, bringing
the total to more than 60, with nearly 9,000 information sources now available to subscribers. In October 2004
ISI acquired the Business Intelligence division of Liquid Africa in South Africa to help accelerate the
development of its Africa-oriented products. It continues to seek other acquisitions.

Net debt at September 30 was £62.5m against £67.1m a year before, partly due to the fall in the US dollar. The
group's strong operating cash flows helped finance a net spend of £16.9m on acquisitions during the year. The
group's debt funding is provided through a bilateral facility arranged by its parent company, Daily Mail and
General Trust plc. This facility, which was due to expire in 2005, was renewed after the end of the year for a
further five-year term.

During 2004 the group has made further progress with its strategy of driving profit improvement through a mix of
organic growth, new business investment, and acquisitions, while maintaining tight control of costs and focusing
on high margin products. The acquisitions of HFI and IMN made a significant contribution to the group's increase
in profits in 2004. At the same time, the more favourable trading conditions enabled the group to step up its
investment in new products. Launch costs of more than £1 million were charged against profits. The benefits of
this investment, and the contribution from high growth businesses such as ISI, HFI and IMN, will form the base
for stronger organic growth in 2005 and beyond.

The group's strategy was developed with the goal of more than doubling profits* to £50m over the five year
period to 2008. To support this demanding performance target, the Remuneration Committee has proposed a new
equity incentive scheme to replace the Company's existing Executive Share Option Plan. The Committee will
consult shareholders and the ABI over this proposed new incentive scheme in December, with a view to seeking
approval for its introduction from shareholders at the Company's Annual General Meeting on February 1 2005.

Gerard Strahan, who has been a director for more than 15 years, during which he has made an outstanding
contribution to the growth of both Euromoney Seminars and Coaltrans, will retire from the board in December.
John Bolsover has previously indicated his intention to retire as a non-executive director and will not seek
re-election at the AGM. Jaime Gonzalez was today appointed a non-executive director of the Company. He is
Chairman and CEO of American Capital Partners, an investment and financial advisory firm based in Hong Kong
covering the Asia Pacific region. He will strengthen the group's growing Asian presence.

The new financial year has begun well. That cannot be relied upon as a guide to the first half, but in spite of
the weak dollar the directors are confident about the group's ability to deliver further growth.

For further information please contact:

Padraic Fallon    Chairman            020 7779 8556 [email protected]
Richard Ensor     Managing Director   020 7779 8845 [email protected]
Colin Jones       Finance Director    020 7779 8959 [email protected]

or visit our website at:  

* Before goodwill amortization, goodwill impairment and exceptional items as set out and reconciled in the
attached profit and loss account and notes 2 and 6.

Group Profit and Loss Account
for the year ended 30 September 2004

                                                                                2004      2003
                                                                        Note    £000's    £000's

Turnover                                                                2
Acquisition                                                                     5,921     -
Closed businesses                                                               -         173
Other continuing operations                                                     168,733   158,769
Total turnover                                                                  174,654   158,942

Operating profit before goodwill amortization and impairment            2
Acquisition                                                                     1,769     -
Closed businesses                                                               -         88
Other continuing operations                                                     28,837    23,724
                                                                                30,606    23,812
Goodwill amortization                                                           (6,357)   (6,787)
Exceptional goodwill impairment                                         3       (1,177)   (7,830)

Operating profit/(loss)                                                 2
Acquisition                                                                     763       -
Closed businesses                                                               -         88
Other continuing operations                                                     22,309    9,107
Total operating profit                                                          23,072    9,195
Share of operating profit in associates                                         373       418
Exceptional profit on disposal/closure of businesses                    3       -         701

Profit on ordinary activities before interest and tax                           23,445    10,314
Interest receivable and similar income                                          422       1,600
Interest payable and similar charges                                            (3,376)   (4,518)
Net interest                                                                    (2,954)   (2,918)

Profit on ordinary activities before tax                                        20,491    7,396
Tax on profit on ordinary activities                                    4       (3,899)   (3,101)

Profit on ordinary activities after tax                                         16,592    4,295
Equity minority interests                                                       (578)     (226)

Profit for the financial year                                                   16,014    4,069
Dividends paid and proposed                                             5       (13,186)  (12,941)

Retained profit/(loss) for the financial year                                   2,828     (8,872)

Basic earnings per share                                                6       18.22p    4.64p
Diluted earnings per share                                              6       18.16p    4.64p
Adjusted diluted earnings per share before goodwill amortization and    6       26.71p    20.50p
exceptional items
Dividend per share                                                      5       15.00p    14.75p

Group Balance Sheet
as at 30 September 2004

                                                                                 2004          2003
                                                                                 £000's        £000's
                                                                                               see note
Fixed assets
Intangible assets                                                                60,989        33,757
Tangible assets                                                                  7,576         8,666
Investments                                                                      190           431

                                                                                 68,755        42,854

Current assets
Debtors                                                                          37,670        47,017
Cash at bank and in hand                                                         23,563        10,772

                                                                                 61,233        57,789

Creditors: amounts falling due within one year                                   (127,326)     (59,907)

Net current liabilities                                                          (66,093)      (2,118)

Total assets less current liabilities                                            2,662         40,736

Creditors: amounts falling due after more than one year                          (10,611)      (64,680)
Provisions for liabilities and charges                                           (575)         -
Accruals                                                                         (18,569)      (17,032)
Deferred income                                                                  (35,317)      (32,330)
Accruals and deferred income falling due within one year                         (53,886)      (49,362)

Net liabilities                                                                  (62,410)      (73,306)

Capital and reserves
Called up share capital                                                          220           219
Share premium account                                                            34,393        33,749
Capital redemption reserve                                                       8             8
Own shares                                                                       (74)          (74)
Profit and loss account                                                          (97,697)      (107,391)

Equity shareholders' deficit                                                     (63,150)      (73,489)
Equity minority interests                                                        740           183
                                                                                 (62,410)      (73,306)

Group Cash Flow Statement
for the year ended 30 September 2004

                                                                                  2004          2003
                                                                           Note   £000's        £000's

Cash inflow from continuing operating activities                                  30,499        24,435
Inflow from acquisition                                                           3,252         -
Net cash inflow from continuing operating activities                       A      33,751        24,435

Dividends received from associate                                                 570           -

Returns on investments and servicing of finance
Interest received                                                                 422           1,600
Interest paid                                                                     (3,120)       (3,116)
Dividends paid to minorities                                                      (150)         (192)

                                                                                  (2,848)       (1,708)
UK tax paid                                                                       (3,530)       (4,265)
Overseas tax paid                                                                 (955)         (1,484)
UK tax received                                                                   319           477
Overseas tax received                                                             308           361

                                                                                  (3,858)       (4,911)
Capital expenditure and financial investment
Purchase of tangible fixed assets                                                 (1,240)       (1,258)
Sale of tangible fixed assets                                                     78            28

                                                                                  (1,162)       (1,230)

Acquisitions and disposals
Purchase of subsidiary undertakings                                               (17,567)      (11,218)
Purchase of additional interests in subsidiary undertakings                       (1,810)       (166)
Cash acquired with subsidiary undertakings                                        2,507         480
Proceeds on sale of businesses                                                    -             701

                                                                                  (16,870)      (10,203)

Equity dividends paid                                                             (12,949)      (12,941)

Cash outflow before financing                                                     (3,366)       (6,558)

Issue of shares for cash
    New ordinary share capital and share premium                                  645           6
Redemption of secured loan stock                                                  (37)          (16)
Revolving credit facilities:
    Increase in borrowings                                                        2,468         21,303
    Repayment of borrowings                                                       (8,411)       (52,138)
Loan repaid to DMGT group company                                                 (26,003)      (4,774)
Loan received from DMGT group company                                             47,108        17,640
                                                                                  15,770        (17,979)

Increase/(decrease) in cash during the year                                B      12,404        (24,537)

Notes to the Group Cash Flow Statement

A  Reconciliation of operating profit to net cash inflow from operating activities

                                                                                      2004          2003
                                                                                      £000's        £000's

   Group operating profit                                                             23,072        9,195
   Amortization of goodwill                                                           6,357         6,787
   Exceptional impairment of capitalized goodwill                                     1,177         1,051
   (note 3)
   Goodwill previously written off to reserves reinstated and written off (note 3)    -             6,779
   Depreciation of tangible fixed assets                                              1,960         2,220
   (Profit)/loss on sale of tangible                                                  (23)          21
   fixed assets
   Increase in debtors                                                                (3,095)       (6,386)
   Increase in creditors                                                              4,303         4,893
   Utilization of property rental                                                     -             (125)

   Net cash inflow from continuing operating activities                               33,751        24,435

   The impact of the acquisition of IMN on the cash flow for the period was an operating cash
   inflow of £3,252,000.

B  Reconciliation of net cash flow to movement in net debt

                                                                                      2004          2003
                                                                                      £000's        £000's

   Increase/(decrease) in cash during the year                                        12,404        (24,537)

   Cash (inflow)/outflow from change in debt finance                                  (285)         13,211
   (Decrease)/increase in net amounts due from DMGT group                             (14,840)      4,774

                                                                                      (2,721)       (6,552)
   Other non-cash items:
   Currency translation differences                                                   7,703         3,677
   Other non-cash changes                                                             (357)         (1,382)

   Movement in net debt in the year                                                   4,625         (4,257)

   Net debt at October 1                                                              (67,103)      (62,846)

   Net debt at September 30                                                           (62,478)      (67,103)

C  Analysis of changes in net debt
                                                                                      Other         At
                                         At October                    Exchange       non-cash      September
                                         1                                                          30
                                         2003           Cash flow      movements      changes       2004
                                         £000's         £000's         £000's         £000's        £000's

   Cash at bank and in hand              10,772         12,662         129            -             23,563
   Bank overdrafts                       (292)          (258)          (3)            -             (553)
                                         10,480         12,404         126            -             23,010

   Debt due within one year              (29,161)       (6,228)        3,780          (53,879)      (31,609)
   Debt due in more than one year        (64,680)       5,943          5,215          53,522        (53,879)

                                         (93,841)       (285)          8,995          (357)         (85,488)
   Amounts owed by DMGT group            16,258         (14,840)       (1,418)        -             -

   Total                                 (67,103)       (2,721)        7,703          (357)         (62,478)

Other non-cash changes represent capitalised interest charged on debt and a
reclassification of the DMGT loan.

Group Statement of Total Recognized Gains and Losses
for the year ended 30 September 2004

                                                                             2004       2003
                                                                             £000's     £000's

Profit for the financial year                                                16,014     4,069
Foreign exchange translation differences                                     6,866      4,477

Total recognized gains and losses for the year                               22,880     8,546

Reconciliation of Movements in Equity Shareholders' Funds
for the year ended 30 September 2004

                                                                                 2004          2003
                                                                                 £000's        £000's
                                                                                               See note

Profit for the financial year                                                    16,014        4,069
Dividends paid and proposed                                                      (13,186)      (12,941)
                                                                                 2,828         (8,872)

Proceeds from issue of shares for cash                                           645           6
Reinstatement of goodwill                                                        -             6,779
Other recognized gains and losses relating to the year                           6,866         4,477

Net decrease in equity shareholders' deficit                                     10,339        2,390

Opening equity shareholders' deficit                                             (73,489)      (75,805)
Prior period adjustment in respect of UITF 38 (note 1)                           -             (74)

Closing equity shareholders' deficit                                             (63,150)      (73,489)

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 year ended September 30 2004 but is derived from those accounts. Statutory accounts
    for 2003 have been delivered to the Registrar of Companies, and those for 2004 will be delivered
    following the company's annual general meeting. The auditors have reported on those accounts; their
    report was 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 2004 has been prepared in accordance with
    the accounting policies set out in the group's 2003 annual report, except for investments in own
    shares of £74,000 which has been reclassified from investments to reserves in accordance with UITF
    38 'Accounting for ESOP Trusts'. Prior period comparatives have been restated.

2  Segmental analysis
                                United Kingdom       North America        Rest of World     Total

                                2004       2003      2004       2003      2004     2003     2004      2003
                                £000's     £000's    £000's     £000's    £000's   £000's   £000's    £000's
   By destination:
   Other continuing             29,518     29,439    71,672     62,970    67,543   66,360   168,733   158,769
   Closed businesses            -          -         -          -         -        173      -         173
   Acquisition*                 81         -         1,900      -         3,940    -        5,921     -
                                29,599     29,439    73,572     62,970    71,483   66,533   174,654   158,942

                                United Kingdom       North America        Rest of World     Total

                                2004       2003      2004       2003      2004     2003     2004      2003
                                £000's     £000's    £000's     £000's    £000's   £000's   £000's    £000's
   By activity and source:
   Financial publishing         27,979     24,752    30,165     32,390    1,350    1,408    59,494    58,550
   Business publishing          17,775     18,644    8,368      9,607     2,739    2,636    28,882    30,887
   Training                     14,965     13,003    5,215      5,187     1,887    1,661    22,067    19,851
   Conferences and seminars     18,793     14,350    15,967     14,539    9,327    6,352    44,087    35,241
   Databases and information    4,396      4,371     3,488      3,052     6,319    6,374    14,203    13,797
   Closed businesses            -          199       -          204       -        213      -         616
   Acquisition*                 -          -         5,921      -         -        -        5,921     -
                                83,908     75,319    69,124     64,979    21,622   18,644   174,654   158,942

                                United Kingdom       North America        Rest of World     Total

                                2004       2003      2004       2003      2004     2003     2004      2003
                                £000's     £000's    £000's     £000's    £000's   £000's   £000's    £000's
   Operating profit
   By activity and source:
   Financial publishing         7,404      6,789     3,646      3,526     (113)    87       10,937    10,402
   Business publishing          3,467      2,810     1,204      1,277     93       (286)    4,764     3,801
   Training                     3,356      2,849     962        758       588      310      4,906     3,917
   Conferences and seminars     4,658      2,402     3,543      3,374     1,983    866      10,184    6,642
   Databases and information    2,531      2,364     871        368       (27)     12       3,375     2,744
   Closed businesses            -          17        -          5         -        66       -         88
   Acquisition*                 -          -         1,769      -         -        -        1,769     -
   Unallocated corporate        (5,717)    (3,650)   388        (132)     -        -        (5,329)   (3,782)
                                15,699     13,581    12,383     9,176     2,524    1,055    30,606    23,812
   Goodwill amortization and    (3,358)    (7,053)   (4,107)    (7,543)   (69)     (21)     (7,534)   (14,617)
   Operating profit after       12,341     6,528     8,276      1,633     2,455    1,034    23,072    9,195
   goodwill amortization and

   * Acquisition revenue and profit stem entirely from the conferences and
   seminars sector.

   The goodwill amortization and impairment of £7,534,000 (2003: £14,617,000) can be allocated as follows;
   Financial publishing, £1,665,000 (2003: £265,000); Business publishing, £2,605,000 (2003: £6,889,000);
   Conferences and seminars, £185,000 (2003: £1,559,000); Databases and information services, £2,072,000
   (2003: £5,904,000); and Acquisitions, £1,007,000.

3   Exceptional items
    Exceptional goodwill impairment
    The group regularly performs a review of its portfolio and this year the review has resulted in
    additional goodwill write offs of £1,177,000 (2003: £1,051,000) in the profit and loss account. In
    2003, the group took an additional writedown of £6,779,000 through the profit and loss account for
    goodwill that was previously written off against reserves under SSAP 22 on several investments
    either where the goodwill was now no longer separately identifiable as a result of business merger
    or where the immediate prospects for the business were uncertain.
    Prior year exceptional profit on disposal/closure of businesses
    In January 2003, the group sold two titles owned by Asia Law and Practice for a profit of £701,000
    after related sale costs. There was no goodwill associated with the sale.

4    Tax on profit on ordinary activities
                                                                                        2004          2003
                                                                                        £000's        £000's
     United Kingdom
     Corporation tax at 30% (2003: 30%)                                                 4,514         2,958
     Associates                                                                         114           108
     Under/(over) provision in respect of prior years                                   165           (523)
                                                                                        4,793         2,543
     Foreign tax
     Overseas taxation                                                                  1,063         686
     Under provision of overseas taxation in respect of prior years                     59            69
     Total current tax                                                                  5,915         3,298
     Deferred tax
     Origination and reversal of asset timing differences                               (1,658)       83
     Origination and reversal of liability timing differences                           2,505         2,773
     Increase in discount                                                               (2,529)       (2,694)
     Over provision of deferred taxation in respect of prior years                      (334)         (359)
     Total deferred tax                                                                 (2,016)       (197)
     Tax on profit on ordinary activities                                               3,899         3,101

     The standard rate of current tax for the year, based on the UK standard rate of corporation tax is 30%
     (2003: 30%). The current tax charge for the year is different from 30% of profit before tax for the reasons
     set out in the following reconciliation:

                                                                                        2004          2003
                                                                                        £000's        £000's

     Profit on ordinary activities before tax                                           20,491        7,396

     Tax at 30%                                                                         6,147         2,219
     Factors affecting tax charge:
         UK goodwill amortization                                                       2,260         4,385
         Non-taxable items and additional deductible UK items                           (1,032)       (1,629)
         US goodwill amortization and brought forward tax losses                        (2,402)       (1,590)
         US state taxes                                                                 418           219
         Disallowable expenditure                                                       -             124
         Movement in other timing differences                                           374           -
         Depreciation in excess of capital allowances                                   45            11
         Lower rates of tax on overseas profits                                         (119)         13
         Under/(over) provisions in prior years                                         224           (454)
     Current tax charge for the year                                                    5,915         3,298

    The exceptional item in 2003 gives rise to a nominal tax charge as the element relating to capital gains is
    not taxable in Hong Kong.

5    Dividends
                                                                                  2004           2003
                                                                                  £000's         £000's

     Interim paid 5p per share (2003: 5p)                                         4,397          4,390
     Final proposed 10.00p per share (2003: 9.75p)                                8,798          8,560
                                                                                  13,195         12,950
     Employees' Share Ownership Trust dividend                                    (9)            (9)
                                                                                  13,186         12,941

     The final dividend of 10.00p (2003: 9.75p) will be paid on February 4 2005 to shareholders on the
     register on December 3 2004. It is expected that the shares will be marked ex-dividend on December 1
     2004. Holders of International Depositary Receipts can receive their dividend on February 4 2005 by
     presentation of coupon number 35 to Banque Internationale a Luxembourg or to one of their agents.

6  Earnings per share

                                                                                    2004         2003
                                                                                    £000's       £000's

   Basic earnings                                                                   16,014       4,069
   Goodwill amortization                                                            6,357        6,787
   Exceptional goodwill impairment (note 3)                                         1,177        7,830
   Exceptional profit on disposal/closure of businesses (note 3)                    -            (701)

   Adjusted earnings before goodwill amortization and exceptional items             23,548       17,985

                                                                                    Number       Number
                                                                                    000's        000's

   Weighted average number of shares                                                87,910       87,796
   Shares held by the Employees' Share Ownership Trust                              (59)         (59)
                                                                                    87,851       87,737
   Effect of dilutive share options                                                 309          -
   Diluted weighted average number of shares                                        88,160       87,737

                                                                                    Pence per    Pence per
                                                                                    share        share

   Basic earnings per share                                                         18.22        4.64
   Effect of dilutive share options                                                 (0.06)       -
   Diluted earnings per share                                                       18.16        4.64
   Effect of goodwill amortization                                                  7.21         7.74
   Effect of exceptional goodwill impairment                                        1.34         8.92
   Effect of profit on disposal/closure of businesses                               -            (0.80)

   Adjusted diluted earnings per share before goodwill amortization and exceptional 26.71        20.50

   The adjusted diluted earnings per share figure has been disclosed since the directors consider it to
   give a meaningful indication of the underlying trading performance.

                      This information is provided by RNS
            The company news service from the London Stock Exchange

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