Commenting on the strategy update, Tim Cobbold said: “Events First recognises that the Events industry is a highly attractive,growing, global industry in which UBM is already a leading player. We have the opportunity to establish UBM firmly as the leading B2B events business globally and thereby to create substantial value for shareholders.”
“To achieve this goal we will focus on our clear priorities: applying our resources to grow our largest and most profitable shows; effecting a step change in the efficiency and effectiveness of our operational performance; and investing in customer insight to enhance their event experience.”
“The strategy we are announcing today will enable us to grow revenues ahead of global GDP in our Events business and provide a basis for margin expansion over the medium term.”
UBM’s top 100 shows by revenue generated more than 96% of Events EBITDA in 2013. UBM will focus its resources on growing these higher margin shows through the sharing of operational best practice and application of common tools for marketing and customer relationship management. In the future UBM will more actively manage the balance of more than 200 shows while investing in those shows with greater growth opportunity.
UBM will look to invest between £25m and £50m per annum in acquisitions of Events businesses subject to strict criteria, including return on investment greater than UBM’s weighted average cost of capital in the first full year of ownership.
Revenue growth in 2015 is expected to reflect the decision to rationalise UBM’s smaller Events and to exit over time from certain activities in the Other Marketing Services segment.
The proposed acquisition has received Hart-Scott-Rodino antitrust clearance, satisfying the only regulatory condition to closing. In addition, UBM expects to publish its shareholder circular and prospectus in the coming days, with a general meeting expected to be convened for the end of November. The proposed acquisition is expected to close around the year end.
For the full RNS click UBM