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Euromoney Ins.InvPLC (ERM)

  Print      Mail a friend       Annual reports

Thursday 16 November, 2006

Euromoney Ins.InvPLC

Final Results-Replacement

Euromoney Institutional InvestorPLC
16 November 2006

The following amends the final results announcement released today at 7.00am
under reference 1716M. The amendment relates to the following lines in the 2005
comparative cash flow statement: purchase available for sale investments has
changed from £12,231,000 to £nil; purchase of additional interest in
subsidiaries undertakings has changed from £4,017,000 to £12,231,000; and
acquisition of associate and joint ventures has changed from £2,080,000 to
£6,097,000. In all other respects the original announcement is unchanged.

Euromoney Institutional Investor PLC

Preliminary Announcement
September 30 2006

Chairman's statement

Record Profits and Dividend in 2006

--------------------                 ------- ----      ------- ---      -------
Highlights                             2006            2005 ^            change
Revenue                              £220.5   m        £194.8   m          +13%
Operating profit*                     £43.8   m         £39.3   m          +11%
Profit before tax                     £35.2   m         £34.4   m           +2%
Diluted earnings a share               41.9   p          34.1   p          +23%
Adjusted diluted earnings a            28.6   p          26.3   p           +9%
Dividend                               17.0   p          16.2   p           +5%

^ 2005 comparatives have been restated in accordance with International
Financial Reporting Standards.

• Operating profit* exceeds £40m for first time

• Organic revenue growth drives profitability higher

• Record cash generated from operations £60m

• All business units contribute to improved performance

• Capital Appreciation Plan continues to drive growth

• £230m acquisition of Metal Bulletin completed post year-end


Euromoney Institutional Investor PLC, the international publishing, events and
electronic information group, reports an increase in 2006 operating profit* to
£43.8 million for the year to September 30, against £39.3 million for the
previous year.  Adjusted diluted earnings a share were 28.6p, against 26.3p in
2005, and the directors recommend a 5% increase in the final dividend to 11.6p,
making a total for the year of 17.0p.

These record results reflect further progress in the group's strategy to build
one of the world's leading international business media groups.  All divisions
achieved strong revenue growth, with group operating profit* exceeding £40
million for the first time. The group also benefited from record operating cash
flows of £59.6 million in 2006, after an increase of £8 million in deferred
subscription revenue.

Commenting on the results, Padraic Fallon, Chairman, said:

'It was another year of record performance, driven by strong organic revenue
growth across all divisions. Our objectives remain the same: to deliver
continued top-line growth from new and existing products; to diversify our
revenues while improving the operating margin; and to invest selectively in
acquisitions that strengthen the Company's market position. The acquisition of
Metal Bulletin, which was completed after the year-end, is a big step forward in
implementing our strategy for creating one of the world's leading international
business media groups.'


Revenue increased by 13% to £220.5million. The trading environment has remained
good throughout the year, with financial institutions continuing to benefit from
a strong performance in almost every asset class. Another year of brisk M&A
activity has helped increase profitability for many of the group's key
customers, while ample liquidity within the secondary and private equity markets
has driven capital flows and investment.

Consistent with management's strategy, most of the growth in operating profit*
has been generated organically.  The performance of the print subscription
titles has been particularly pleasing, with subscriber numbers, subscription
rates and renewal rates all ahead of the previous year. This growth has been
driven by the group's continued investment in direct marketing, with spend
increasing by 19% to £10 million in the year.

Operating profits* from conferences and seminars were affected by timing
differences: two of IMN's biggest events were run twice in 2005, but have since
returned to their usual timing in the first quarter of 2007; this was partly
compensated for by Adhesion's biennial Vinisud wine exhibition which was held in
2006. Excluding these timing differences, underlying group operating profits*
increased by 20%. The training businesses have also been an important
contributor to volume and margin improvements, helped by the launch of new


The group's operating margin* was slightly lower than last year at 19.9%,
compared to 20.2% in 2005, due to timing differences on some of the group's
largest events.  As expected, the positive benefit from operational gearing seen
in 2005 moderated this year, as the group continued to invest in the long-term
sustainable growth of its businesses. The focus remains on building high margin,
repeat annual revenues and the elimination of low margin products.


Operating profits* from Financial Publishing increased by 17% to £13.1 million,
as a result of strong growth in both advertising and subscription revenues.
Nearly all titles increased profits: Euromoney had an impressive year, achieving
17% growth in advertising revenues and publishing its biggest IMF issue for ten
years; Institutional Investor - International Edition improved its performance
sharply on 2005; and the specialist tiles Euroweek and Project Finance delivered
strong growth from advertising and new products.

Business Publishing had a good year with operating profits* increasing by 25% to
£6.8 million. Encouragingly, this was a broad-based improvement: the US energy
publications delivered record profits; the legal titles benefited from strong
growth in subscription and advertising revenues including a record IFLR 1000
directory; and the transport and telecoms titles sharply increased profits by
diversifying away from advertising into new revenue streams.

Operating profits* from Conferences and Seminars increased by 5% to £20.3
million and underlying profits, after adjusting for timing differences,
increased by 23% continuing the excellent growth record achieved over the past
five years. The continued interest in alternative assets has supported revenue
and profit growth, and most of the businesses achieved an increase in both the
number of events held and the average revenue per event, in line with the
group's strategy.  II Memberships had an excellent year, with a record number of
members at year-end and subscription revenues increasing by 21%.  New membership
organizations for private wealth managers and legal and compliance officers are
being launched in 2007.  IMN continued to grow through the launch of successful
new events for the securitization and real estate markets.

The Training businesses delivered operating profits* of £7.0 million, an
increase of 13% and an all-time high. The growth mainly came from the volume of
courses offered and an increase in the average yield. The full year result is
particularly pleasing to management when compared to the half year, and reflects
the decisive actions taken at that time to improve performance, and an increase
in marketing investment.

Operating profits* from Databases and Information Services improved by 38% to
£5.4 million. CEIC, consolidated from April 2006, continues to perform ahead of
its forecasts at acquisition, and £0.5 million was invested in accelerating the
roll out of CEIC's economic data service to other emerging markets. Revenue
growth from ISI, the emerging markets information provider, maintained its
momentum, with a client retention rate in excess of 90%. The number of ISI
customers, products and data providers all increased during the year.


Year-end net debt was £73.4 million, down from £75.5 million at the half year.
While the level of debt is usually higher in the first half following the
payment of dividends and profit shares, net debt at year-end increased by only
£7.0 million from 2005.  This is after investing £3.4 million in the acquisition
of Asia Business Forum, £19.7 million on the purchase of a 9% interest in Metal
Bulletin, and a further £14.5 million increasing the group's investments in IMN,
ISI and CEIC under earn-out agreements.  The significant gap between what has
been paid out and the increase in net debt has largely been met by the very
strong cash generated from operations of £59.6 million, demonstrating the robust
organic performance of the business and reflecting a key strength of the group's
business model. In addition deferred revenue at year end was £45.3 million,
against £37.5 million at the end of 2005.


Operating profit* exceeded £40 million for the first time, reflecting further
evidence of the benefits of the Capital Appreciation Plan. This highly-geared
equity incentive was introduced to drive profit**  to a target of £50 million by
2008 against a base of £21 million in 2003. Approximately 150 managers
participate in this incentive which encourages investment in new products and
directly rewards each participant for the organic profit growth achieved by
their business.

The non-cash cost of the CAP is being expensed over the life of the plan. For
2006, the first full year of amortizing the CAP cost, an expense of £4.3 million
(2005: £1.3 million) has been charged.


In March 2006, the group acquired a 47.5% stake in Asia Business Forum, a
leading business conference and training organizer in the Asian region, for £3.4
million. A further 42.5% interest will be acquired in 2007 under the earn-out

In October 2006 the group acquired a 67% stake in Total Derivatives, a leading
provider of real-time news and analysis about the global fixed income
derivatives markets, for £6.7 million. This is an exciting acquisition, taking
the group further into the provision of electronic information services and
providing an excellent platform for the launch of new products. The acquisition
was funded from the group's existing borrowing facility and is expected to be
earnings enhancing in 2007.

Euromoney's acquisition of Metal Bulletin plc was declared unconditional on
October 5 2006, after the financial year-end. The acquisition cost of
approximately £230 million was funded by a mix of debt (£163 million) loan notes
(£12 million) and up to 14 million new shares (£55 million). The debt was
provided by a new £375 million three year multi-currency facility.  In addition
the Company assumed £14 million of Metal Bulletin net debt.  The issue of new
shares increased the Company's issued share capital by 16%, and will
significantly increase the free float in the Company's shares. Daily Mail and
General Trust plc now owns 61% of the Company.

The acquisition of Metal Bulletin is consistent with the group's long-term
strategy of building subscription and repeat revenues, reducing its dependence
on advertising revenue, investing further in growing financial information
products, and establishing critical mass in non-financial information products.
The integration of Metal Bulletin is underway, and while it is too early to
comment in detail, the Company is confident that the significant growth
opportunities and cost savings identified at the time of acquisition are


The increase in the final dividend is consistent with the Company's strategy of
moving gradually to a dividend cover of two times, while still delivering real
dividend growth.  The total payment to shareholders for the 2006 financial year
will be £16.7 million, bringing the dividends returned to shareholders over the
past five years to over £70 million, all financed from operating cash flows.


The group has traditionally had a low tax rate due to the tax amortization of
goodwill available on US acquisitions and the availability of brought-forward
tax losses for use against its US profits.  In 2006, the group recognized a
deferred tax credit of £13.6 million in respect of US tax losses and tax
deductible US goodwill as the group's US businesses are now expected to generate
taxable profits for the foreseeable future.  After adjusting for this deferred
tax credit, the group's underlying tax rate was 27% against 28% in 2005.  The
majority of the group's tax losses and deferred tax assets have been recognized
and the group's underlying tax rate for 2007 and subsequent years is now
expected to be at least 30%.


The Company has benefited from a healthy financial environment in 2006, and any
marked reversal in the performance of financial markets in 2007 will present
challenges. However, the Company's strategy has been to diversify its revenues
while investing in the quality of its products and services to ensure
competitive advantage irrespective of the trading environment. The opportunities
that the Metal Bulletin acquisition presents, along with the group's continued
organic growth, leave the Company optimistic about its prospects for 2007. For
the new financial year, the first quarter is generally the least significant in
profit terms, and visibility for the second quarter is always limited at this
stage. However, current trading is encouraging, with advertising, sponsorship
and delegate sales all ahead of the same period in 2005.

Padraic Fallon

November 15 2006


About Euromoney Institutional Investor PLC

Euromoney Institutional Investor PLC is listed on the London Stock Exchange and
a member of the FTSE-250 share index. It is a leading international
business-to-business media group focused primarily on the international finance
sector. It publishes more than 100 magazines, newsletters and journals,
including the leading financial market titles Euromoney and Institutional
Investor. It also runs an extensive portfolio of conferences, seminars and
training courses and is a leading provider of electronic information and data
covering international finance and emerging markets. Its main offices are in
London, New York and Hong Kong and nearly half its revenues and profits are
managed from the United States.  On October 5 2006 the Company completed the
acquisition of Metal Bulletin plc for £230 million.  The acquisition was funded
partly by the issue of 14 million new shares, following which the Daily Mail and
General Trust plc now owns 61% of the Company.

For further information please contact:

Euromoney Institutional Investor
Padraic Fallon, Chairman 020 7779 8556 [email protected]
Richard Ensor, Managing Director 020 7779 8845 [email protected]
Colin Jones, Finance Director 020 7779 8556 [email protected]

Alex Money or Tom Allison 020 7936 9790 [email protected]

Or visit our website at

* Operating profit before acquired intangible amortisation, share option
expense, exceptional items and share of results in associates and joint ventures
as set out in the group income statement.

++ Diluted earnings a share before acquired intangible amortisation, exceptional
items, imputed interest on acquisition option commitments and deferred tax
assets recognised, as set out in note 6.

** Profit before tax excluding acquired intangible amortization, share option
expense, exceptional items and imputed interest on acquisition option

Group Income Statement
for the year ended September 30 2006

                                                               2006       2005
                                                   Notes     £000's     £000's
Revenue                                                2
---------------------------------------------      -----   ---------  ---------
Continuing operations                                       222,276    196,266
Less: share of revenue of joint ventures                     (1,800)    (1,434)
---------------------------------------------      -----   ---------  ---------
Total revenue                                               220,476    194,832
---------------------------------------------      -----   
Operating profit before acquired intangible            2     43,812     39,348
amortisation, share option expense and exceptional
Acquired intangible amortisation                               (144)         -
Share option expense                                         (4,428)    (1,380)
Exceptional items                                      3       (716)      (315)
                                                           ---------  ---------
Operating profit before associates and joint           2     38,524     37,653
---------------------------------------------      -----   ---------  ---------
Share of results in associates and joint                      1,208        624
ventures                                                   ---------  ---------
Operating profit                                             39,732     38,277
Finance income                                                  772        340
---------------------------------------------      -----   ---------  ---------
Imputed interest on acquisition option                         (916)         -
Other finance costs                                          (4,354)    (4,183)
---------------------------------------------      -----   ---------  ---------
Finance costs                                                (5,270)    (4,183)
                                                           ---------  ---------
Net finance costs                                            (4,498)    (3,843)
Profit before tax                                            35,234     34,434
---------------------------------------------      -----   ---------  ---------
Tax on profit                                               (10,137)    (9,657)
Deferred tax asset recognition                               13,649      7,240
---------------------------------------------      -----   ---------  ---------
Tax credit/(expense) on profit on ordinary             4      3,512     (2,417)
                                                           ---------  ---------
Profit after tax                                             38,746     32,017
                                                           =========  =========
Attributable to:
Equity holders of the parent                                 37,430     30,181
Equity minority interests                                     1,316      1,836
                                                           ---------  ---------
                                                             38,746     32,017
                                                           =========  =========
Basic earnings per share                               6      42.11p     34.19p
Diluted earnings per share                             6      41.90p     34.10p
Dividend per share (including proposed dividends)      5      17.00p     16.20p

Group Balance Sheet
as at September 30 2006

                                                         2006             2005
                                                       £000's           £000's
Non-current assets
Intangible assets
Goodwill                                               68,452           66,029
Other intangible assets                                 3,146              479
Property, plant and equipment                          14,643           10,747
Investments                                            25,846            7,080
Deferred tax asset                                     22,917            9,820
                                                    ----------      -----------
                                                      135,004           94,155
                                                    ----------      -----------
Current assets
Trade and other receivables                            73,512           54,927
Cash and cash equivalents                              27,503           25,071
Derivative financial instruments                        3,069                -
                                                    ----------      -----------
                                                      104,084           79,998
Current liabilities
Trade and other payables                              (95,515)         (75,935)
Accruals                                              (29,478)         (23,225)
Deferred income                                       (45,324)         (37,491)
Bank overdrafts                                        (1,235)            (139)
                                                    ----------      -----------
                                                     (171,552)        (136,790)
Net current liabilities                               (67,468)         (56,792)
                                                    ----------      -----------
Total assets less current liabilities                  67,536           37,363
Non-current liabilities
Acquisition option commitments                        (24,332)               -
Deferred consideration                                      -           (8,689)
Other non-current liabilities                            (597)               -
Committed facility                                    (65,530)         (62,518)
Deferred tax liabilities                               (3,074)            (981)
Provisions                                               (777)          (1,125)
                                                    ----------      -----------
                                                      (94,310)         (73,313)
                                                    ----------      -----------
Net liabilities                                       (26,774)         (35,950)
                                                    ==========      ===========
Shareholders' equity
Called up share capital                                   223              222
Share premium account                                  38,081           37,351
Capital redemption reserve                                  8                8
Own shares                                                (74)             (74)
Liability for share based payments                      5,907            1,479
Fair value reserve                                      6,618                -
Translation reserve                                      (244)          (1,300)
Retained earnings                                     (78,642)         (75,245)
                                                    ----------      -----------
Equity shareholders' deficit                          (28,123)         (37,559)
Equity minority interests                               1,349            1,609
                                                    ----------      -----------
Total equity                                          (26,774)         (35,950)
                                                    ==========      ===========

Group Cash Flow Statement
for the year ended September 30 2006
                                                               2006       2005
                                                             £000's     £000's
Cash flow from operating activities
Operating profit                                             39,732     38,277
Share of operating profit in associates and joint            (1,208)      (624)
Loss on disposal of business                                  1,483        315
Intangible amortisation                                         381          -
Goodwill impairment                                             519          -
Share option expense                                          4,428      1,380
Depreciation of property, plant and equipment                 2,925      1,745
Utilisation of property rental provision                       (348)      (148)
(Gain)/loss on disposal of property, plant and equipment     (1,286)        87
                                                           ---------  ---------
Operating cash flows before movements in working capital     46,626     41,032
Increase in receivables                                      (9,822)    (4,395)
Increase in payables                                         22,754      6,181
                                                           ---------  ---------
Cash generated by operations                                 59,558     42,818
Income taxes paid                                            (6,884)    (6,797)
                                                           ---------  ---------
Net cash from operating activities                           52,674     36,021
                                                           ---------  ---------
Investing activities
Dividends paid to minorities                                 (1,724)      (943)
Dividends received from associate                               756          -
Interest received                                               662        345
Purchases of property, plant and equipment                   (7,694)    (5,387)
Proceeds on disposal of property, plant and equipment         1,975         20
Purchase of available for sale investments                  (19,741)         -
Purchase of additional interest in subsidiaries             (14,507)   (12,231)
Acquisition of associate and joint ventures                  (3,424)    (6,097)
Disposal of subsidiary                                          150        500
                                                           ---------  ---------
Net cash used in investing activities                       (43,547)   (23,793)
                                                           ---------  ---------
Financing activities
Dividends paid                                              (14,563)   (13,376)
Interest paid                                                  (696)    (3,756)
Issue of new share capital                                      730      2,960
Increase in borrowings                                        3,336     42,932
Repayment of borrowings                                           -    (39,540)
Loan repaid to DMGT group company                           (71,991)   (15,384)
Loan received from DMGT group company                        76,399     15,622
                                                           ---------  ---------
Net cash used in financing activities                        (6,785)   (10,542)
                                                           ---------  ---------
Net increase in cash and cash equivalents                     2,342      1,686
Cash and cash equivalents at beginning of year               24,932     23,099
Effect of foreign exchange rate movements                    (1,006)       147
                                                           ---------  ---------
Cash and cash equivalents at end of year                     26,268     24,932
                                                           ---------  ---------

Note to the Group Cash Flow Statement

A Net Debt

                                                             2006         2005
                                                           £000's       £000's

Net debt at beginning of period                           (66,430)     (62,389)
Increase in cash and cash equivalents                       2,342        1,686
Decrease in loans                                         (15,716)     (18,907)
Decrease in amounts owed to DMGT group company              7,972       15,384
Other non cash changes                                     (4,973)        (106)
Effect of foreign exchange rate movements                   3,367       (2,098)
                                                         ---------    ---------
Net debt at end of period                                 (73,438)     (66,430)
                                                         =========    =========

Net debt comprises cash at bank and in hand, bank overdrafts, bank loans and
other borrowings.

Cash and cash equivalents in the cash flow statement includes banks overdrafts.

Group Statement of Changes in Equity
for the year ended September 30 2006

                                                               2006       2005
                                                    Note     £000's     £000's

Profit for the year                                          37,430     30,181
Dividends paid                                         5    (14,563)   (13,376)
                                                              -------    -------
                                                             22,867     16,805
Proceeds from issue of shares for cash                          731      2,960
Credit to equity for share based payments                     4,428      1,380
Fair value gains on cash flow hedges                          3,629        n/a
Fair value gains on available for sale                          405        n/a
Net exchange difference on foreign currency loans             3,183          -
Changes in acquisition commitments                           (4,728)         -
Tax on items going through reserves                            (265)      (264)
Exchange differences on translation of foreign                1,056     (1,300)
Other movements                                                 (23)         -
                                                             -------    -------
Net decrease in equity shareholders' deficit                 31,283     19,581
Impact of adoption of IAS 39 on October 1 2005              (21,847)         -
Opening equity shareholders' deficit as restated/           (37,559)   (57,140)
previously stated
                                                             -------    -------

Closing equity shareholders' deficit                        (28,123)   (37,559)
                                                             =======    =======
Total equity attributable to:
Equity holders of the parent                                (28,123)   (37,559)
Equity minority interests                                     1,349      1,609
                                                            --------   --------
                                                            (26,774)   (35,950)
                                                            ========   ========

IAS 39 requires unrealised fair value gains/(losses) on certain financial
instruments to be recognised in equity; when realised, these fair value gains/
(losses) are recognised in the income statement. In accordance with the
transition rules for first time adoption of IFRSs, 2005 comparatives have not
been restated. The impact of the adoption of IAS 39 is shown above and in note

Notes to the Preliminary Announcement

1 Basis of preparation

The preliminary results have been prepared in accordance with the recognition
and measurement principles of International Financial Reporting Standards
('IFRS') as adopted by the European Union, and those parts of the Companies Act
1985 applicable to companies reporting under IFRS. The group is complying with
IFRS for the first time for the year ended September 30 2006 and the accounting
policies applicable to the group from October 1 2004 are those that are set out
in a separate document, 'Adoption of International Financial Reporting Standards
- Preliminary restatement of 2005 financial information' which was published on
March 22 2006, and is available on the group's website at
reports/IFRS_Restatement_2005.pdf. The same accounting policies have been
consistently applied to the preliminary financial statements except where the
Group has taken advantage of the exemption in International Financial Reporting
Standard 1: 'First-time Adoption of International Financial Reporting Standards'
('IFRS 1') from the requirement to restate comparative information for
International Accounting Standard 32: 'Financial Instruments: Disclosure and
Presentation' ('IAS 32') and International Accounting Standard 39: 'Financial
Instruments: Recognition and Measurement' ('IAS 39'). These standards have been
adopted from October 1 2005 and the impact is set out in note 7.

The financial information set out in this announcement does not constitute the
company's statutory accounts for the year ended September 30 2006 but is derived
from those accounts. The financial information for the year ended September 30
2005 is based on information extracted from the group's statutory accounts for
that period prepared under UK GAAP, and restated in accordance with IFRS.
Statutory accounts for 2005, prepared under UK GAAP, have been delivered to the
Registrar of Companies, and those for 2006 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.

2 Segmental analysis

Primary reporting format

Segmental information is presented in respect of the group's business divisions
and represent the group's management and internal reporting structure. The group
is currently organised into five business divisions: Financial publishing;
Business publishing; Training; Conferences and seminars; and Databases and
information services. This is considered to be the primary reporting format.
Financial publishing and Business Publishing consist primarily of advertising
and subscription revenue. The Training division consists primarily of delegate
revenue. Conferences and seminars consists of both sponsorship income and
delegate revenue. Databases and information services consists of subscription
revenue. A breakdown of the group's revenue by type is set out below.

Secondary reporting format

The group divides the operation of its businesses across three main geographical
areas: United Kingdom; North America; and Rest of World (which primarily
includes Asia). These geographical areas are considered as the secondary
reporting format.

Inter segment sales are charged at prevailing market rates.

                 United Kingdom       North America       Rest of World       Eliminations             Total
                 2006      2005      2006      2005      2006      2005      2006      2005       2006       2005
               £000's    £000's    £000's    £000's    £000's    £000's    £000's    £000's     £000's     £000's
By division
and source:

Financial      31,905    29,425    31,637    28,365     1,605     1,408         -         -     65,147     59,198
Business       15,829    14,610     8,362     7,038     1,292     1,155         -         -     25,483     22,804
Training       19,831    16,342     7,143     6,580     2,243     2,140      (390)     (358)    28,827     24,704
Conferences    28,021    22,101    41,200    38,994    11,959     7,976    (4,220)   (4,313)    76,960     64,758
and seminars
Databases       5,201     4,894     5,349     4,304    10,689     7,344         -         5     21,239     16,547
Closed          1,721     4,053         -       344       146     1,420       (21)      (44)     1,846      5,773
Unallocated     1,980     1,718         -         -         -         -    (1,006)     (670)       974      1,048
               -------   -------   -------   -------   -------   -------   -------   -------    -------    -------
Group         104,488    93,143    93,691    85,626    27,934    21,443    (5,637)   (5,380)   220,476    194,832
Joint             915     1,434         -         -       885         -         -         -      1,800      1,434
(sale of
              --------   -------   -------   -------   -------   -------   -------   -------   --------   --------
              105,403    94,577    93,691    85,626    28,819    21,443    (5,637)   (5,380)   222,276    196,266
              ========   =======   =======   =======   =======   =======   =======   =======   ========   ========

The joint venture revenues of £1,800,000 (2005: £1,434,000) can be allocated as
follows; Business publishing £915,000 (2005: £1,434,000); Databases and
information £885,000 (2005: £nil).

                                                          2006            2005
                                                        £000's          £000's
Revenue by type:
Advertising                                             58,589          53,328
Sponsorship                                             37,176          32,705
Subscriptions                                           56,300          48,017
Training, delegates and events                          57,442          46,786
Other                                                    9,123           8,224
Closed businesses                                        1,846           5,772
                                                      ---------       ---------
Total revenue                                          220,476         194,832
Investment income                                          733             340
                                                      ---------       ---------
Total revenue and investment income                    221,209         195,172
                                                      =========       =========

                United Kingdom        North America      Rest of World       Eliminations             Total
                2006      2005       2006      2005      2006      2005      2006      2005      2006       2005
              £000's    £000's     £000's    £000's    £000's    £000's    £000's    £000's    £000's     £000's

Sale of       24,334    23,212     59,303    52,853    38,606    32,697    (4,844)   (3,414)   117,399    105,348
Sale of       12,562     9,736     42,857    37,893    46,585    38,005      (773)   (1,922)   101,231     83,712
Closed           489     1,703        464     1,126       914     2,987       (21)      (44)     1,846      5,772
(sale of
              -------   -------    -------   -------   -------   -------   -------   -------   --------   --------
Group         37,385    34,651    102,624    91,872    86,105    73,689    (5,638)   (5,380)   220,476    194,832
Joint             60        57        152       270     1,588     1,107         -         -      1,800      1,434
(sale of
              -------   -------   --------   -------   -------   -------   -------   -------   --------   --------
Total         37,445    34,708    102,776    92,142    87,693    74,796    (5,638)   (5,380)   222,276    196,266
Investment       284       119        366       189        83        32         -         -        733        340
              -------   -------   --------   -------   -------   -------   -------   -------   --------   --------
Total         37,729    34,827    103,142    92,331    87,776    74,828    (5,638)   (5,380)   223,009    196,606
share of
revenue) and
              =======   =======   ========   =======   =======   =======   =======   =======   ========   ========

                                      United Kingdom       North America      Rest of World          Total
                                      2006       2005      2006      2005     2006     2005      2006      2005
                                    £000's     £000's    £000's    £000's   £000's   £000's    £000's    £000's
Operating profit1
By division and source:

Financial publishing                 8,526      8,413     4,637     2,664      (13)     141    13,150    11,218
Business publishing                  5,020      3,861     1,560     1,475      204       89     6,784     5,425
Training                             5,069      3,906     1,460     1,619      456      632     6,985     6,157
Conferences and                      7,486      5,871    11,091    13,291    1,708      158    20,285    19,320
Databases and information 
services                             3,792      2,768      (121)    1,551    1,721     (427)    5,392     3,892
Closed businesses                     (108)      (182)        -      (248)       8      (66)     (100)     (496)
Unallocated corporate costs         (7,548)    (5,652)   (1,097)     (516)     (39)       -    (8,684)   (6,168)
                                    -------    -------   -------   -------  -------  -------   -------   -------
                                    22,237     18,985    17,530    19,836    4,045      527    43,812    39,348
Acquired intangible 
amortisation 2                           -          -         -         -     (144)       -      (144)        -
Share option expense                (2,241)      (830)   (1,944)     (508)    (243)     (42)   (4,428)   (1,380)
Exceptional items (note 3)            (716)      (315)        -         -        -        -      (716)     (315)
                                    -------    -------   -------   -------  -------  -------   -------   -------
Operating profit before             19,280     17,840    15,586    19,328    3,658      485    38,524    37,653
associates and joint ventures
                                    -------    -------   -------   -------  -------  -------   -------   -------
Share of results in                                                                             1,208       624
associates and joint
Net finance costs                                                                              (4,498)   (3,843)
                                                                                               -------   -------
Profit before tax                                                                              35,234    34,434
Tax                                                                                             3,512    (2,417)
                                                                                               -------   -------
Profit after tax                                                                               38,746    32,017
                                                                                               =======   =======

The exceptional items of £716,000 (2005: £315,000) can be allocated as follows:
Business publishing £2,002,000 (2005: £315,000); Unallocated corporate costs,
profit £1,286,000 (2005: £nil). Share option expense of £4,428,000 (2005:
£1,380,000) can be allocated as follows: Financial publishing £1,198,000 (2005:
£373,000); Business publishing £464,000 (2005: £145,000), Training £577,000
(2005: £180,000); Conferences and seminars £1,253,000 (2005: 390,000), Databases
£302,000 (2005: £94,000); Unallocated corporate costs £634,000 (2005: £198,000).
Acquired intangible amortisation of £144,000 (2005: £nil) is allocated entirely
to Databases.

 1. Operating profit before acquired intangible amortization, share option
    expense and exceptional items.
 2. Intangibles amortisation represents amortisation on acquisitions related non
    goodwill assets such as brands, database content and trademarks.

3 Exceptional items

Exceptional items are items of income or expense considered by the directors,
either individually or if of a similar type in aggregate, as being either
material or significant and which require disclosure in order to provide a view
of the group's results excluding these items.

                                                          2006            2005
                                                        £000's          £000's
Profit on sale of property                               1,286               -
Loss on disposal of business                            (1,483)           (315)
Goodwill impairment                                       (519)              -
                                                        -------         -------
                                                          (716)           (315)
                                                        =======         =======

In September 2006, the group sold the freehold of one of its London properties
with a net book value of £629,000 for £1,975,000 resulting in a profit on sale,
after related sale costs, of £1,286,000. The group has capital losses brought
forward from prior years available to relieve this gain.  In the absence of
these losses a tax charge of approximately £386,000 would have arisen.

In August 2006 the group sold Office Products International Limited (previously
named Mondiale Limited) ('OPI'), the publisher and events organiser for
£150,000. At the date of disposal OPI's net assets were £nil and the group
wrote off goodwill  held on its balance sheet of £1,651,000 resulting in a loss
on disposal, after related transaction costs, of  £1,483,000. There is no tax

The group regularly performs a review of its portfolio of businesses and in 2006
the review resulted in goodwill impairment of £519,000. In 2005, no such
impairment was required.  There is no tax effect.

4 Tax on profit on ordinary activities

                                                              2006        2005
                                                            £000's      £000's
Current tax expense
UK corporation tax                                           6,119       5,194
Foreign tax                                                  1,533       1,531
Adjustments in respect of prior years                          107         544
                                                            -------     -------
                                                             7,759       7,269
Deferred tax (credit)/expense
Current year                                               (11,361)     (4,701)
Adjustments in respect of prior years                           90        (151)
                                                            -------     -------
                                                           (11,271)     (4,852)
                                                            -------     -------
Total tax (credit)/expense in income statement              (3,512)      2,417
                                                            =======     =======

The effective rate of tax for the year is negative, at (10%) (2005: positive
7%). The actual total tax charge for the year is different from 30% of profit
before tax for the reasons set out in the following reconciliation:

                                                               2006       2005
                                                             £000's     £000's
Profit before tax                                            35,234     34,434
                                                             -------    -------
Tax at 30%                                                   10,570     10,330
Factors affecting tax charge:
Lower rates of tax on overseas profits                         (338)      (599)
Joint venture and associate income reported net of tax         (362)      (187)
US State taxes                                                  756      1,283
US goodwill                                                 (13,120)    (1,809)
Disallowable expenditure                                        136        246
UK Goodwill                                                     161          -
Recognition of previously unrecognised tax losses            (1,957)    (7,240)
Non deductible loss on sale of business                         445          -
Prior year adjustments                                          197        393
                                                             -------    -------
Total tax (credit)/expense for the year                      (3,512)     2,417
                                                             =======    =======

Of the charge to current tax £nil (2005: £18,000) related to profits arising in
Mondiale, which was disposed of during the year. No tax charge or credit arose
on the disposal of the relevant subsidiary. Following a reassessment of the
recoverability of the potential US deferred tax asset, an additional asset of
£13,649,000 (2005: £7,240,000) was recognised during the year.

The actual tax charged directly to equity was £265,000 (2005: £264,000).

5 Dividends

                                                               2006       2005
                                                             £000's     £000's
Amounts recognisable as distributable to equity holders 
in period
Final dividend for the year ended September 30 2005 of        9,767      8,798
11.0p (2004: 10.0p)
Interim dividend for year ended September 30 2006 of 5.4p     4,806      4,587
(2005: 5.2p)
                                                           ---------  ---------
                                                             14,573     13,385
Employees' Share Ownership Trust dividend                       (10)        (9)
                                                           ---------  ---------
                                                             14,563     13,376
                                                           =========  =========

Proposed final dividend for the period ended September       11,907      9,767
Employees' Share Ownership Trust dividend                       (10)       (10)
                                                           ---------  ---------
                                                             11,897      9,757
                                                           =========  =========

The final dividend of 11.6 pence per ordinary share (2005: 11.0 pence) will,
subject to shareholder approval at the Annual General Meeting, be paid on
February 6 2007 to shareholders on the register on November 24 2006. It is
expected that the shares will be marked ex-dividend on November 22 2006. Holders
of International Depositary Receipts can receive their dividend on February 6
2007 by presentation of coupon number 39 to Dexia Banque a Luxembourg or to one
of their agents.

The final dividend is subject to approval at the Annual General Meeting on
February 1 2007 and has not been included as a liability in these financial
statements in accordance with IAS 10 'Events after the balance sheet date'.

6 Earnings per share

                                                           2006           2005
                                                         £000's         £000's
Basic earnings                                           37,430         30,181
                                                       ---------      ---------
Intangible amortisation                                     144              -
Exceptional items                                           716            315
Deferred tax assets recognition                         (13,649)        (7,240)
Imputed interest on acquisition option                      916              -
                                                       ---------      ---------

Adjusted earnings                                        25,557         23,256
                                                       =========      =========

                                                         Number         Number
                                                          000's          000's
Weighted average number of shares                        88,943         88,336
Shares held by the Employees' Share Ownership               (59)           (59)
                                                       ---------      ---------
                                                         88,884         88,277
Effect of dilutive share options                            456            231
                                                       ---------      ---------
Diluted weighted average number of shares                89,340         88,508
                                                       =========      =========

                                                           2006           2005
                                                      Pence per      Pence per
                                                          share          share

Basic earnings per share                                  42.11          34.19
Effect of dilutive share options                          (0.21)         (0.09)
                                                       ---------      ---------
Diluted earnings per share                                41.90          34.10
Effect of intangible amortisation                          0.16              -
Effect of exceptional items                                0.80           0.36
Effect of deferred tax assets recognition                (15.28)         (8.18)
Effect of imputed interest on acquisition option           1.03              -
                                                       ---------      ---------

Adjusted diluted earnings per share                       28.61          26.28
                                                       =========      =========

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

7 First time adoption of IAS 39 'Financial Instruments: Recognition and

As permitted by IFRS 1 'First time Adoption of International Financial Reporting
Standards', the group has elected to defer the implementation of IAS 39 until
the year ended September 30 2006.  The effect of the adoption of IAS 39 at
October 1 2005 is to reduce net assets by £21.9 million, due to the following

Forward exchange contracts and interest rate swaps

IAS 39 requires that derivative financial instruments are recognised on the
balance sheet at their fair value. At October 1 2005 the effect on the group
balance sheet was to reduce net assets by £0.6 million.

Derecognition of liabilities

IAS 39 sets out specific criteria in relation to when a financial liability
should be derecognised.  Application of this resulted in an increased liability
of £1.6 million which was recognised on the balance sheet from October 1 2005.

Acquisition option commitments

The group is party to a number of put options over the remaining minority
interests in its subsidiaries.  IAS 39 requires the recognition of a liability
in respect of these acquisition option commitments.  As at October 1 2005, the
discounted present value of these options is £20.1 million. From October 1 2005
these discounts are unwound as a notional interest charge to the income

Deferred tax

A deferred tax asset of £0.4 million has been recognized on the above

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