DODS.L Regulatory News (DODS)

26 Jun 2007 14:00

Huveaux PLC26 June 2007 26 June 2006 HUVEAUX PLC TRADING UPDATE Huveaux is today making the following trading update ahead of its half-yearresults announcement which is expected to be made on 26 July. While EBITDA for 2007 is expected to slightly exceed the level achieved in 2006,this is below current market expectations. Healthcare Division Our Healthcare Division in France has seen a significant drop in sales revenueas compared to the first half of 2006. This is as a direct result ofpharmaceutical companies cutting their advertising budgets across the board inresponse to the sharp rise in generic drugs. The revenues from our ContinuingMedical Education accredited publications and other product offerings havestarted to flow through, but these have not been sufficient to offset the impactfrom the decline in pharmaceutical advertising. Accordingly, the outlook for theyear is that sales and EBITDA of the Healthcare Division will be significantlylower than in 2006. Nevertheless, the expected performance of the Healthcare Division in 2007 willstill give at least a 15% pre-tax return on the original cost of acquisition -significantly in excess of our cost of capital. Political Division The Political Division continues to make progress with good organic revenuegrowth. Its market-leading positions in London, Paris and Brussels continue tobe strengthened and the outlook for the year remains very positive. Learning Division This division has been impacted by training budget cuts in GovernmentDepartments during the first half of 2007. Sales have started to recover duringthe past few weeks and the outlook is for a strong second half performance.Nevertheless, for 2007 as a whole, sales and EBITDA are likely to be lower thanin 2006. Education Division The Education Division is making very good progress with strong organic growthin both sales and EBITDA. Under Huveaux's new ownership, the historic revenuedecline at Letts has been reversed and Lonsdale's sales are up significantly onlast year, including an encouraging increase in Science curriculum sales. Leckie& Leckie has also produced an outstanding performance with record profits andincreased market share driven by an expanded portfolio. The 2007 outlook for theEducation Division is therefore excellent. The Company continues to make strategic progress in key areas and is stronglycommitted to increasing shareholder value. Accordingly, the complementaryacquisition of the European Public Affairs Directory was completed in May andour small contract publishing business in the Healthcare Division was sold inJune. A review of our paper and print costs is also likely to have a beneficialeffect on the 2008 results. Management has initiated a recovery programme and further details will beincluded in the half-year results announcement. END For further information, please contact: Huveaux John van KuffelerExecutive Chairman 020 7245 0270 Gerry MurrayChief Executive Officer Dan O'BrienGroup Finance Director Finsbury James Leviton 020 7251 3801Don Hunter About Huveaux: Huveaux PLC is a public limited company listed on the Alternative InvestmentMarket (ticker HVX.L). The Company was formed in 2001 with the objective of building a substantial,high-quality media group. Huveaux has completed and successfully integrated 13acquisitions over the past six years and employs more than 500 staff in London,Paris, Brussels, Edinburgh and four other UK regional offices. The Group now consists of four Divisions, each of which has strong brands andmarket leading positions: Political Division The market leader in political business-to-business publishing in the UK and EU,serving both the political and public affairs communities. The Divisioncomprises Dods Parliamentary Companion, The House Magazine, Epolitix.com andnumerous other political magazines, reference books, monitoring products andrevenue-generating websites as well as events, awards and recruitment services. Healthcare Division One of the leading providers of specialist B2B publications and online educationfor the medical sector in France. The Division comprises Panorama du Medecin, aleading weekly magazine for French doctors, Le Concours Medical and La Revue duPraticien, market-leading Continuing Medical Education magazines, Egora.fr, theleading medical information website, a medical conference business and a numberof other magazines and reference materials. Learning Division A leading provider of resources to learning communities in the UK, includinge-learning solutions for the public and private sector and blended learningsolutions, seminars and events for the political, public affairs and trainingmarkets. The Division comprises Epic, the UK market leader in e-learning, The TJmagazine and the highly acclaimed Westminster Explained conferences and seminarsbusiness. Education Division (established 1 January 2007) The leading supplier of study aids and revision guides in the UK, with fullproduct coverage across all subjects and stages of the entire curriculum in UKschools. The Division comprises Lonsdale, Letts Educational and Leckie & Leckie. This information is provided by RNS The company news service from the London Stock Exchange