(Alliance News) - Euromoney Institutional Investor PLC on Tuesday forecast profit for financial 2020 to exceed market expectations but said Covid-19 restrictions had led it to undertake a further restructuring and cost-reduction programme.
The business information and events provider said pretax profit for its financial year ending September 30 will be ahead of market expectations, which forecast adjusted pretax profit of between GBP48.0 million to GBP54.0 million, with a consensus of GBP50.4 million.
Turning to current trading, Euromoney said that while it has seen continued "robust" performance in subscriptions - which makes up two-thirds of its revenue - income from events has been hurt by Covid-19 restrictions. It noted it is unlikely to run physical events during the first quarter of financial 2021 - running from October to December - adding that if it is still unable to run physical events from January to March 2021, its events figures will be hurt even more.
As a result, the company will undergo a a further restructuring and cost-reduction programme, which will mainly affect its events business. In June, Euromoney said it embarked on cost-reduction measures expected to result in cash savings of GBP20 million in the second half of financial 2020.
Net cash at the end of August 2020 was GBP23.9 million.
Shares in Euromoney were trading 0.8% lower at 795.00 pence each midday Tuesday in London. The FTSE 250 stock is down 39% so far in 2020.
By Ife Taiwo; firstname.lastname@example.org
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