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Euromoney Ins.InvPLC (ERM)

  Print      Mail a friend       Annual reports

Thursday 19 May, 2005

Euromoney Ins.InvPLC

Interim Results

Euromoney Institutional InvestorPLC
19 May 2005

Euromoney Institutional Investor PLC

Interim Report 2005

Chairman's Statement


Highlights                             2005       2004      change

Turnover                               £89.0  m   £81.8  m  +9%
Profit before tax, goodwill            £13.7  m   £11.1  m  +24%
amortization and impairment
Profit before tax                      £9.8   m   £7.6   m  +30%
Adjusted diluted earnings a share*     11.21  p   10.15  p  +10%
Earnings a share                       6.8    p   6.2    p  +10%
Dividend                               5.2    p   5.0    p  +4%

Euromoney Institutional Investor PLC, the international publishing, events and
electronic information group, reports an increase in profit before tax and
goodwill amortization to £13.7 million for the six months to March 31, against
£11.1 million for the previous year. Adjusted diluted earnings a share were
11.2p against 10.1p in 2004.

The board has approved an interim dividend of 5.2p, against 5.0p, to be paid to
shareholders on June 24, 2005.

Profit before tax was £9.8 million, against £7.6 million, and earnings a share
increased from 6.2p to 6.8p.

Trading in the first half followed a similar pattern to 2004. Growth in the
publishing businesses was held back by continued tough advertising markets,
increased investment in marketing and the weakness of the US dollar. In spite of
these, publishing profits* increased by 14% to £6 million and advertising
revenues increased by 4% to £25.9 million.

In contrast, the training and events businesses increased profits* by 40% to £10
million. This was despite the absence from the first half of two of the group's
biggest events: Vinisud, the French wine exhibition; and InfoSec World, the
audit and information security conference. In 2004, these two events together
contributed profits* of £2 million. This was more than offset by the inclusion
of the results of Information Management Network ('IMN'), acquired in March
2004, which contributed profits* of £4.1 million before funding costs of £0.6

Group turnover increased by 9% to £89.0 million. The average US dollar sterling
rate for the period was 1.87 against 1.78 last year which reduced turnover by
approximately 4%. Excluding currency movements, the acquisition of IMN, and the
timing differences on Vinisud and InfoSec World, turnover increased by 7%.

Profits* from financial publishing increased by 12% to £3.9 million following a
1% increase in revenues. Advertising into some of the group's titles, notably
Euromoney and Euroweek, increased but generally magazines found it difficult to
sustain the upward trends of the second half of 2004. So far the excellent
financial results being reported by global financial institutions, particularly
in the United States, have not translated into increased advertising spend.
Institutional Investor achieved a 2% increase in advertising revenues but has
seen a softening of markets since March. The group continues to maintain a high
level of marketing investment in subscriptions but revenues fell slightly as
smaller publications were merged or sold as part of the group's rationalization

The results from the business publishing portfolio were mixed. Revenues were
flat but profits* improved by 17% to £2.1 million, mostly as a result of the
elimination of losses from underperforming businesses. Advertising across the
legal, energy, pharmaceutical and transport sectors remained weak. In
particular, there have been no signs of improvement in the outlook for Business
Traveller and, after losses in the first half of £0.4 million, the business was
sold at the beginning of May. The sale gave rise to an exceptional goodwill
impairment charge of £1 million which has been recognised in the half year

The training businesses delivered excellent results, with growth in all regions
and across the three sectors served - financial, legal, and audit and
information security. Better markets, increased recruitment particularly in the
financial sector, and more effective marketing all contributed to a 7% increase
in revenues to £11 million and profits* up 35% to £2.6 million.

MIS, the Boston-based audit and information security training business, has seen
strong demand for its courses in response to the additional audit and reporting
requirements introduced by the Sarbanes-Oxley Act in the United States.

The conference and seminar businesses maintained the growth seen over the past
two years, helped by the acquisition of IMN. Revenues increased by 26% to £29.1
million and profits* by 41% to £7.4 million. The Euromoney and Institutional
Investor event businesses both increased revenues through the launch of new
events, particularly in Asia. However, results from Adhesion, the group's French
subsidiary were sharply down in the face of weak domestic demand for its
business meetings. The results of the conferences and seminars division would
have been even better but for the timing of two important events: Adhesion's
biennial regional wine exhibition, Vinisud, was last run in February 2004 and is
next scheduled for 2006; and MIS's annual InfoSec World conference was moved
from March to April. The absence of both these events reduced first half
revenues and profits* by £3.6 million and £2 million respectively.

IMN, the market leader in securitization and indexation events, contributed
incremental profits* of £4.1 million. The performance of IMN has exceeded
expectations with strong growth from its securitization events and successful
launches of new events in the real estate and Native American finance sectors.

Revenues from databases and information services increased by 9% to £7.6
million, although the strong performance of ISI, the group's emerging market
information service, is masked by the decline in the US dollar rate. ISI
revenues increased by 20% to $10.7 million and annualised revenues passed $22
million, indicating that the significant investment by the group in electronic
information and publishing is proving to be the correct strategy. ISI's gross
and net new sales improved to levels not seen since 1998 when the business was
still in the early stages of launch, while the retention rate was maintained at
90%. The revenue growth has also helped ISI add new products to its service and
in March ISI completed the acquisition of CEIC in Hong Kong. CEIC is one of the
leading providers of time-series macro-economic data covering Asia and provides
an excellent fit with ISI with opportunities for both businesses to cross-sell
each other's products.

Net debt at March 31 was £75.6m, an increase of £13.1 million since year end.
The level of debt traditionally increases in the first half following the
payment of the final dividend and year end profit shares in January. In addition
the group spent £16 million on acquisitions and increasing its interests in
subsidiaries. ISI acquired a 49% interest in CEIC for an initial consideration
of £3.8 million. Payment for the next 25% will be made in June 2006 and the
final 26% a year later.

The final instalment on the acquisition of a 100% interest in HFI was paid in
January. The growth in profits* of HFI since its acquisition in August 2003 has
exceeded expectations and triggered the maximum deferred consideration under the
earn-out agreement of £5.5 million. The group acquired 80% of IMN in February
2004, but paid for only 50% at the time. The remaining 30% was subject to three
deferred profit-related payments of which the first, of £5.3 million, was paid
in February. The maximum EBITA multiple under the earn-out agreement was
achieved for this first deferred payment. Further earn-out payments of 10%
respectively are due in 2006 and 2007. The group also increased its equity
interest in ISI from 90% to 91% in January at a cost of £0.4 million.

In March the group began a project to consolidate and refurbish its London
offices. This project will last approximately two years and require capital
expenditure of approximately £5.5 million. In addition, the head lease on one of
the group's remaining properties was acquired in April for £1.8 million.

A new equity incentive scheme to replace the company's Executive Share Option
Plan was approved at the Annual General Meeting in February. The Capital
Appreciation Plan ('CAP') is a highly geared equity incentive designed to drive
the achievement of the company's target of profits* of £50 million by 2008.
Initial awards under the CAP will be granted within 42 days of the announcement
of the interim results. The cost of the CAP will be amortized over the life of
the scheme, starting from the date of grant. The expected non-cash charge in the
second half will be approximately £1 million.

The trading trends seen in 2004 and the first half of 2005 have continued into
the third quarter. The group does not expect significant growth in advertising
and there have been signs over the past few weeks that US advertising may weaken
further, particularly in the financial sector. However, forward bookings for the
training and events businesses for the third quarter are ahead of last year. ISI
subscription revenues, underpinned by strong first half sales, should continue
to grow and the acquisition of CEIC will make a positive profit* contribution.

Two timing differences will help the second half results: the InfoSec World
conference in April (run in March last year); and IMN's ABS East conference
which has been brought forward from October to September to accommodate venue
requirements. Based on last year's events this would add £2 million to second
half profits*. However, as usual September may contribute more than half of the
profits* for the second half, which means that with little forward visibility
for September revenues the outcome for the full year will depend heavily on the
strength of financial markets over the next three months.


Background note: Euromoney Institutional Investor PLC is listed on the London
and Luxembourg stock exchanges. It is a constituent of the FTSE 250 Index. Daily
Mail and General Trust plc owns 71% of the company.

Padraic Fallon
May 18 2005

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 and impairment as set out and reconciled in the
attached profit and loss account and notes 2 and 9.

Group Profit & Loss Account
for the six months ended March 31 2005

                                   Unaudited        Unaudited         Audited 
                                  six months       six months      Year ended 
                                       ended            ended                 
                                    March 31         March 31    September 30 
                                        2005             2004            2004 
                      Note            £000's           £000's          £000's 

  Turnover              2                                                     
  Sold/closed                         1,405            1,993           3,348  
  Other continuing                   87,546           79,826         171,306  

  Total turnover                     88,951           81,819         174,654  

  Operating profit      2                                                     
  before goodwill                                                             
  Sold/closed                          (411)            (502)           (821) 
  Other continuing                   15,825           12,704          31,427  
                                     15,414           12,202          30,606  

  Goodwill                           (2,840)          (3,504)         (6,357) 
  Exceptional           3            (1,047)               -          (1,177) 

  Operating profit      2                                                     
  Sold/closed                        (1,559)            (544)         (1,586) 
  Other continuing                   13,086            9,242          24,658  

  Total operating                    11,527            8,698          23,072  

  Share of                               94              158             373  
  operating profit                                                            
  in associates and                                                           
  joint ventures                                                              

  Profit on                          11,621            8,856          23,445  
  activities before                                                           
  interest and tax                                                            
  Interest                              126              328             422  
  Interest payable                   (1,913)          (1,630)         (3,376) 
  and similar charges                                                                     
  Net interest                       (1,787)          (1,302)         (2,954) 

  Profit on                           9,834            7,554          20,491  
  activities before                                                           
  Tax on profit on      4            (2,642)          (1,865)         (3,899) 
  Profit on                           7,192            5,689          16,592  
  activities after                                                            
  Equity minority                    (1,175)            (252)           (578) 
  Profit for the                      6,017            5,437          16,014  
  financial period                                                            
  Dividends paid        8            (4,584)          (4,395)        (13,186) 
  and proposed                                                                
  Retained profit                     1,433            1,042           2,828  
  for the financial                                                           

  Basic earnings        9             6.84 p           6.19 p         18.22 p 
  per share                                                                   
  Diluted earnings      9             6.81 p           6.17 p         18.16 p 
  per share                                                                   
  Adjusted diluted      9            11.21 p          10.15 p         26.71 p 
  earnings per                                                                
  share before                                                                
  amortization and                                                            
  exceptional items                                                           
  Dividend per          8             5.20 p           5.00 p         15.00 p 

Group Balance Sheet                                                         
  as at March 31 2005                                                         
                                       Unaudited    Unaudited         Audited 
                                           as at        as at           as at 
                                        March 31     March 31    September 30 
                                            2005         2004            2004 
                                          £000's       £000's          £000's 
  Fixed assets                                                                
  Intangible assets                      59,692       58,285          60,989  
  Tangible assets                         6,964        8,545           7,576  
  Investments                             4,017           34             190  
                                         70,673       66,864          68,755  
  Current assets                                                              
  Debtors                                41,213       30,916          37,670  
  Cash at bank and in hand               15,109       16,160          23,563  
                                         56,322       47,076          61,233  
  Creditors: amounts falling due        (37,980)     (30,934)       (127,326) 
  within one year                                                             
  Net current assets/(liabilities)       18,342       16,142         (66,093) 
  Total assets less current              89,015       83,006           2,662  

  Creditors: amounts falling due        (90,568)     (97,161)        (10,611) 
  after more than one year                                                    
  Provisions for liabilities and           (571)           -            (575) 

  Accruals                              (15,418)     (12,847)        (18,569) 
  Deferred income                       (37,960)     (36,163)        (35,317) 

  Accruals and deferred income          (53,378)     (49,010)        (53,886) 
  falling due within one year                                                 

  Net liabilities                       (55,502)     (63,165)        (62,410) 

  Capital and reserves                                                        
  Called up share capital                   221          220             220  
  Share premium account                  35,298       34,318          34,393  
  Capital redemption reserve                  8            8               8  
  Own shares                                (74)         (74)            (74) 
  Profit and loss account               (92,032)     (98,027)        (97,697) 

  Equity shareholders' deficit          (56,579)     (63,555)        (63,150) 
  Equity minority interests               1,077          390             740  
                                        (55,502)     (63,165)        (62,410) 

Group Cash Flow Statement                                                   
for the six months ended March 31 2005                                      

                                      Unaudited    Unaudited         Audited 
                                     six months   six months           Year 
                                          ended        ended           ended 
                                       March 31     March 31    September 30 
                                           2005         2004            2004 
                             Note        £000's       £000's          £000's 

  Net cash inflow from          5        14,357       13,566          33,751  
  continuing operating                                                        

  Dividends received from                     -          570             570  

  Returns on investments and servicing of                                     
  Interest received                         126          328             422  
  Interest paid                          (1,689)      (1,614)         (3,120) 
  Dividends paid to                        (943)        (151)           (150) 
                                         (2,506)      (1,437)         (2,848) 
  UK tax paid                            (2,692)      (1,602)         (3,530) 
  Overseas tax paid                      (1,215)        (633)           (955) 
  UK tax received                            16          318             319  
  Overseas tax received                     252          264             308  
                                         (3,639)      (1,653)         (3,858) 

  Capital expenditure and financial investment                                
  Purchase of tangible                     (526)        (498)         (1,240) 
  fixed assets                                                                
  Sale of tangible fixed                     23           58              78  
                                           (503)        (440)         (1,162) 

  Acquisitions and disposals                                                                   
  Purchase of subsidiary                (12,249)     (16,517)        (19,377) 
  Cash acquired with subsidiary               -        1,486           2,507  
  Purchase of joint venture              (3,769)           -               -  
                                        (16,018)     (15,031)        (16,870) 

  Equity dividends paid                  (8,795)      (8,554)        (12,949) 

  Cash outflow before                   (17,104)     (12,979)         (3,366) 

  Issue of new ordinary                     906          570             645  
  share capital                                                               
  Issue of share capital by                   -           20               -  
  subsidiary to minority interest                                             
  Redemption of unsecured                     -          (37)            (37) 
  loan stock                                                                  
  Revolving credit                                                            
  . Increase in borrowings               13,403       42,453           2,468  
  . Repayment of borrowings              (6,491)     (10,957)         (8,411) 
  Loan repaid to DMGT group             (12,846)     (27,998)        (26,003) 
  Loan received from DMGT group          14,620       15,132          47,108  
                                          9,592       19,183          15,770  

  (Decrease)/increase in       6,7       (7,512)       6,204          12,404  
  cash during the period                                                      

Group Statement of Total Recognized Gains and Losses                        
for the six months ended March 31 2005                                      

                                Unaudited     Unaudited         Audited 
                               six months    six months            year 
                                    ended         ended           ended 
                                 March 31      March 31    September 30 
                                     2005          2004            2004 
                                   £000's        £000's          £000's 

  Profit for the period             6,017         5,437          16,014 
  Foreign exchange translation      3,575         8,322           6,866 

  Total recognized gains and        9,592        13,759          22,880 
  losses for the period                                                       

Reconciliation of Movements in Equity Shareholders' Funds                   
for the six months ended March 31 2005                                      

                                     Unaudited     Unaudited         Audited 
                                    six months    six months            year 
                                         ended         ended           ended 
                                      March 31      March 31    September 30 
                                          2005          2004            2004 
                                        £000's        £000's          £000's 

  Profit for the period                  6,017         5,437           16,014 
  Dividends paid and proposed           (4,584)       (4,395)        (13,186) 
                                         1,433          1,042           2,828 

  Proceeds from issue of shares            906           570              645 
  for cash                                                                    
  Reinstatement of goodwill                657             -               -  
  previously written off to                                                   
  Other recognized gains and             3,575          8,322           6,866 
  losses relating to the period                                               

  Net decrease in equity                 6,571          9,934          10,339 
  shareholders' deficit                                                       

  Opening equity shareholders'         (63,150)      (73,489)        (73,489) 

  Closing equity shareholders'         (56,579)      (63,555)        (63,150) 

Notes to the Unaudited Interim Report

1. Basis of preparation

This interim report was approved by the board of directors on May 18 2005 and
follows the accounting policies adopted in the 2004 annual report. The financial
information contained in this interim report does not constitute statutory
accounts as defined in section 240 of the Companies Act 1985 and should be read
in conjunction with the 2004 annual report. The comparative financial
information is based on the interim results for the six months ended March 31
The figures for the year to September 30 2004 are an abridged statement from the
group's accounts at that date which have been delivered to the Registrar of
Companies. The auditors' report on those accounts was unqualified and did not
contain a statement under section 237(2) or 237(3) of the Companies Act 1985.

2. Segmental analysis

                                                    Unaudited six months ended March 31                               
                               United Kingdom            North America          Rest of World              Total        
                              2005       2004          2005       2004         2005       2004       2005       2004 
                            £000's     £000's        £000's     £000's       £000's     £000's     £000's     £000's 
  By destination:                                                                                                     
  Other continuing          16,199     17,234        36,829     28,255       34,518     34,337     87,546     79,826  
  Sold/closed                  286        320           301        751          818        922      1,405      1,993  
                            16,485     17,554        37,130     29,006       35,336     35,259     88,951     81,819  

                               United Kingdom            North America          Rest of World              Total        
                              2005       2004          2005       2004         2005       2004       2005       2004 
                            £000's     £000's        £000's     £000's       £000's     £000's     £000's     £000's 
  By activity and                                                                                                     
  Financial                 13,092     12,102        13,895     14,743          713        613     27,700     27,458  
  Business                   8,325      8,425         3,240      3,040          523        507     12,088     11,972  
  Training                   7,219      6,923         2,691      2,425        1,140      1,016     11,050     10,364  
  Conferences and           10,271      8,957        15,908      8,339        2,898      5,724     29,077     23,020  
  Databases and              2,377      2,213         1,789      1,715        3,465      3,084      7,631      7,012  
  Sold/closed                  355        473           300        795          750        725      1,405      1,993  
                            41,639     39,093        37,823     31,057        9,489     11,669     88,951     81,819  
2. Segmental analysis continued 

                                                    Unaudited six months ended March 31                               
                               United Kingdom             North America         Rest of World             Total        
                              2005       2004           2005       2004         2005      2004       2005       2004 
                            £000's     £000's         £000's     £000's       £000's    £000's     £000's     £000's 
  Operating profit                                                                                                    
  By activity and                                                                                                     
  Financial                  2,843      2,411          1,112      1,190          (48)     (112)     3,907      3,489  
  Business                   1,769      1,753            329        109           14       (54)     2,112      1,808  
  Training                   1,620      1,249            607        377          418       328      2,645      1,954  
  Conferences and            2,122      1,954          5,460      1,851         (205)    1,413      7,377      5,218  
  Databases and              1,398      1,390            666        303         (356)      (95)     1,708      1,598  
  Sold/closed                 (187)      (355)          (209)      (208)         (15)       61       (411)      (502) 
  Unallocated               (1,637)    (1,120)          (287)      (243)           -         -     (1,924)    (1,363) 
  corporate costs                                                                                                     
                             7,928      7,282          7,678      3,379         (192)    1,541     15,414     12,202  
  Goodwill                  (2,150)      (976)        (1,737)    (2,515)           -       (13)    (3,887)    (3,504) 
  amortization and                                                                                                    
  Operating profit           5,778      6,306          5,941        864         (192)    1,528     11,527      8,698  
  after goodwill                                                                                                      

The goodwill amortization of £3,887,000 (2004: £3,504,000) can be allocated as
follows; Financial publishing, £829,000 (2004: £833,000); Business publishing,
£618,000 (2004: £537,000); Conferences and seminars, £1,041,000 (2004:
£325,000); Databases and information services, £251,000 (2004: £1,767,000); and
Sold/closed businesses, £1,148,000 (2004: £42,000).

3. Exceptional items

In May 2005, the Business Traveller group was sold. As a result the related
goodwill at March 2005 was reduced to its recoverable amount based on the
expected net sales proceeds. The total impairment was £1,047,000. The results of
these businesses are included within sold/closed businesses.

4. Tax on profit on ordinary activities

                                Unaudited           Unaudited         Audited 
                         six months ended    six months ended            Year
                                 March 31            March 31    September 30 
                                     2005                2004            2004 
                                   £000's              £000's          £000's 
  United Kingdom                                                              

  Corporation tax at               1,945               1,637            4,514 
  30% (2004: 30%)                                                             
  Associates                          55                  49              114 
  Over provision in                    -                (499)             165 
  respect of prior                                                            
                                   2,000               1,187            4,793 

  Foreign tax                                                                 
  Overseas taxation                  576                 665            1,063 
  Under provision in                  66                  13               59 
  respect of prior                                                            

  Total current tax                2,642               1,865            5,915 

  Deferred tax                                                                
  Origination and                   (551)                  -          (1,658) 
  reversal of asset                                                           
  timing differences                                                          
  Origination and                  1,816               1,347            2,505 
  reversal of                                                                 
  liability timing                                                            
  Increase in                     (1,265)             (1,347)         (2,529) 
  Over provision in                    -                   -            (334) 
  respect of prior                                                            
  Total deferred tax                   -                   -          (2,016) 

  Tax charge on                    2,642               1,865            3,899 
  profit on ordinary                                                          

The standard rate of current tax for the year, based on the UK standard rate of
corporation tax, is 30% (2004: 30%). The current tax charge for the period is
different from 30% of profit before tax for the reasons set out in the following

                                Unaudited          Unaudited         Audited 
                         six months ended   six months ended            Year
                                 March 31           March 31    September 30 
                                     2005               2004            2004 
                                   £000's             £000's          £000's 

  Profit on ordinary                9,834              7,554          20,491  
  activities before                                                           

  Tax at 30%                        2,950              2,266           6,147  
  Factors affecting                                                           
  UK goodwill                         645              1,051           2,260  
  Non-taxable items                  (240)              (472)         (1,032) 
  and additional                                                              
  deductible UK items                                                         
  US goodwill                      (1,033)              (714)         (2,402) 
  amortization and                                                            
  Utilisation of tax                 (551)                                    
  losses brought                                                              
  US state taxes                      467                166             418  
  Disallowable                        356                127               -  
  Movement in other                     -                  -             374  
  timing differences                                                          
  Depreciation (less                   (6)               (14)             45  
  than)/in excess of                                                          
  capital allowances                                                          
  Lower rates of tax                  (12)               (59)           (119) 
  on overseas profits                                                         
  Under / (over)                       66               (486)            224  
  provisions in                                                               
  respect of prior                                                            

  Current tax charge                2,642              1,865           5,915  
  for the period                                                              
The tax charge for the period based on profit before tax, goodwill amortization,
exceptional and prior year items has been calculated by applying the forecast
full year effective rate of 18.8% to the interim profit before tax, goodwill
amortization and exceptional items.

5. Reconciliation of operating profit to net cash inflow from operating
                                  Unaudited        Unaudited         Audited 
                                 six months       six months            Year
                                      ended            ended           ended 
                                   March 31         March 31    September 30 
                                       2005             2004            2004 
                                     £000's           £000's          £000's 

  Group operating profit             11,527            8,698          23,072  
  Amortization of goodwill            2,840            3,504           6,357  
  Exceptional goodwill                1,047                -           1,177  
  Depreciation of tangible              872              889           1,960  
  fixed assets                                                                
  Profit on sale of                      (3)             (12)            (23) 
  tangible fixed assets                                                       
  Decrease/(increase) in                342           17,643          (3,095) 
  (Decrease)/increase in             (2,268)         (17,156)          4,303  

  Net cash inflow from               14,357           13,566          33,751  
  continuing operating                                                        

6. Reconciliation of net cash flow to movement in net debt 
                                     Unaudited     Unaudited         Audited 
                                    six months    six months            year 
                                         ended         ended           ended 
                                      March 31      March 31    September 30 
                                          2005          2004            2004 
                                        £000's        £000's          £000's 

  (Decrease)/increase in cash           (7,512)        6,204          12,404  
  during the period                                                           

  Cash inflow from change in debt      (13,100)       (3,461)           (285) 
  Decrease/(increase) in net             4,414       (15,132)        (14,840) 
  amounts due from DMGT group                                                 
                                       (16,198)      (12,389)         (2,721) 
  Other non-cash items:                                                       
  Currency translation                   3,067         6,562           7,703  
  Other non-cash changes                     -             -            (357) 

  Movement in net debt in the          (13,131)       (5,827)          4,625  
  Net debt at start of period          (62,478)      (67,103)        (67,103) 

  Net debt at end of period            (75,609)      (72,930)        (62,478) 

7. Analysis of changes in net debt 
                         At   Cash flow     Exchange       Other    At March
                  October 1                movements    non-cash     31 2005 
                       2004                              changes             
                     £000's      £000's       £000's      £000's      £000's 

  Cash at bank       23,563      (7,873)        (581)          -      15,109  
  and in hand                                                                 
  Bank                 (553)        361           42           -        (150) 
                     23,010      (7,512)        (539)          -      14,959  
  Debt due          (85,488)     (4,414)         (84)     85,488      (4,498) 
  within one                                                                  
  Debt due in             -      (8,686)       3,606     (85,488)    (90,568) 
  more than one                                                               
                    (85,488)    (13,100)       3,522           -     (95,066) 

  Amounts owed            -       4,414           84           -       4,498  
  by DMGT group                                                               

  Total             (62,478)    (16,198)       3,067           -     (75,609) 

Other non-cash changes represent a reclassification of the DMGT loan from less
than one year to more than one year following the new five year committed
banking facility entered into in October 2004.

8. Dividends
                                     Unaudited     Unaudited         Audited 
                                    six months    six months            year 
                                         ended         ended           ended 
                                      March 31      March 31    September 30 
                                          2005          2004            2004 
                                        £000's        £000's          £000's 

  Interim proposed 5.2p per share        4,587         4,398           4,397  
  (2004: 5.0p)                                                                
  Final paid 10p per share                   -             -           8,798  
                                         4,587         4,398          13,195  
  Employees' Share Ownership                (3)           (3)             (9) 
  Trust dividend                                                              
                                         4,584         4,395          13,186  

The interim dividend of 5.2p (2004: 5.0p) will be paid on June 24 2005 to
shareholders on the register on May 27 2005. It is expected that the shares will
be marked ex-dividend on May 25 2005. Holders of International Depositary
Receipts ('IDR') can receive their dividend on June 24 2005 by presentation of
coupon number 36 to Dexia Banque Internationale a Luxembourg or to one of their

Holders of IDRs may exchange their certificates, talon attached, for their new
IDR certificates containing additional coupons, numbered 36 onwards from the
Dexia Banque Internationale a Luxembourg or one of their agents.

9. Earnings per share
                              Unaudited          Unaudited           Audited 
                             six months         six months              year 
                                  ended              ended             ended 
                               March 31           March 31      September 30 
                                   2005               2004              2004 
                                 £000's             £000's            £000's 

  Basic earnings                  6,017              5,437            16,014  
  Goodwill                        2,840              3,504             6,357  
  Exceptional                     1,047                  -             1,177  
  goodwill impairment                                                         
  (note 3)                                                                    

  Adjusted earnings               9,904              8,941            23,548  
  before goodwill                                                             
  amortization and                                                            
  exceptional items                                                           
                                 Number             Number            Number 
                                  000's              000's             000's 

  Weighted average               88,095             87,859            87,910  
  number of shares                                                            
  Shares held by the                (59)               (59)              (59) 
  Employees' Share                                                            
  Ownership Trust                                                             
                                 88,036             87,800            87,851  
  Effect of dilutive                335                279               309  
  share options                                                               

  Diluted weighted               88,371             88,079            88,160  
  average number of                                                           

                         Pence per share    Pence per share   Pence per share 

  Basic earnings per               6.84               6.19             18.22  
  Effect of dilutive              (0.03)             (0.02)            (0.06) 
  share options                                                               

  Diluted earnings                 6.81               6.17             18.16  
  per share                                                                   
  Effect of goodwill               3.21               3.98              7.21  
  Effect of                        1.19                  -              1.34  
  goodwill impairment                                                         

  Adjusted diluted                11.21              10.15             26.71  
  earnings per share                                                          
  before goodwill                                                             
  amortization and                                                            
  exceptional items                                                           

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

Independent Review Report to Euromoney Institutional Investor PLC


We have been instructed by the company to review the financial information for
the six months ended March 31 2005 which comprises the profit and loss account,
the balance sheet, the cash flow statement, the statement of total recognized
gains and losses, the reconciliation of movements in equity shareholders' funds
and related notes 1 to 9. We have read the other information contained in the
interim report and considered whether it contains any apparent misstatements or
material inconsistencies with the financial information.

This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters that we are required to state to them
in an independent review report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to anyone other than
the company, for our review work, for this report, or for the conclusions we
have formed.
Directors' responsibilities

The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by, the directors. The directors
are responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.

Review work performed

We conducted our review in accordance with the guidance contained in Bulletin
1999/4 issued by the Auditing Practices Board for use in the United Kingdom. A
review consists principally of making enquiries of group management and applying
analytical procedures to the financial information and underlying financial data
and, based thereon, assessing whether the accounting policies and presentation
have been consistently applied unless otherwise disclosed. A review excludes
audit procedures such as tests of controls and verification of assets,
liabilities and transactions. It is substantially less in scope than an audit
performed in accordance with United Kingdom auditing standards and therefore
provides a lower level of assurance than an audit. Accordingly, we do not
express an audit opinion on the financial information.

Review conclusion

On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended March 31 2005.

Deloitte & Touche LLP
Chartered Accountants
May 18 2005

Directors and Advisors

Chairman PM Fallon ++

Managing Director PR Ensor ++

Finance Director CR Jones

The Viscount Rothermere *+
Sir Patrick Sergeant *++(S)
CJF Sinclair *+++
NF Osborn
DC Cohen
CR Brown
JP Williams*(S)
JC Botts*+++(S)
E Bounous
SM Brady
RT Lamont
D Alfano
G Mueller
MJ Carroll
CHC Fordham
J Gonzalez*

* non-executive director
+ member of the remuneration committee
++ member of the nominations committee
(S) member of the audit committee

President Sir Patrick Sergeant

Company Secretary CR Jones

Registered Office Nestor House, Playhouse Yard, London EC4V 5EX

Registered Number 954730

Auditors Deloitte & Touche LLP, London

Solicitors Nabarro Nathanson, Lacon House, Theobald's Road, London WC1X 8RW

Stockbrokers UBS, 1 Finsbury Avenue, London EC2M 2PP

Depositary Dexia Banque Internationale a Luxembourg SA, 69 route d'Esch, 2953

Agents of the Depositary
Citicorp Investment Bank (Switzerland), Bahnhofstrasse 63, PO Box 224, CH 8021
Citibank NA, Citibank House, 336 Strand, London WC2R 1HB

Registrars Capita IRG plc, The Registry, 34 Beckenham Road, Beckenham, Kent BR3

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