Centaur Regulatory News (CAU)

13 January 2012

Centaur Media PLC

Half year trading update

Centaur Media plc (LSE: CAU, the "Group"), the business information and events group, today issues a trading update for the six months to 31 December 2011. The Group expects to report profits in line with the Board's expectations with underlying revenues 4% ahead of the same period last year and EBITDA margins increased from 4.5% to 6.5%.

November revenues were weaker than last year, principally reflecting event timing. December revenues returned to growth. Digital revenues continue to show strong underlying growth rates, while print revenues are broadly flat.

The Group expects to report EBITDA and EBITDA margins ahead of the same period last year, reflecting the benefits of the restructuring initiatives and the impact of the disposals programme that was completed in H1. The Group continues to manage its cost base closely to reflect what remain challenging trading conditions.

The Group completed the acquisition of IPL and VBR in the first six months of FY12 for a total initial consideration of £4.3m. Taking both these transactions into account, net debt at 31 December was £5.5m. Centaur's earnings and cash flows are heavily weighted towards the second half of the financial year and the Group expects to be cash positive by 30 June 2012.

The Group retains a strong balance sheet. Deferred revenues of approximately £11.4m are 6% ahead of the same period last year.

The Group will report exceptional costs for the first six months of the year related to further cost savings initiatives and the acquisitions of IPL and VBR. Earn-out payments that are contingent on future employment of the vendors will also be included as exceptional non cash charges for the acquisitions of FEM, IPL and VBR.

Geoff Wilmot, Chief Executive, commented:

"We remain encouraged by what has been a good first half. While the economic outlook is challenging, we see strong potential across each of the Business Publishing, Business Information and Exhibitions divisions and there remains a strong pipeline of potential acquisitions.

"The second half of the year traditionally accounts for the majority of our earnings, and we anticipate trading in line with our expectations for the current financial year."

The Group expects to release its half yearly earnings report on 23 February 2012.

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