Informa Shares Drop as Financials Fail To Ignite Bulls

Informa shares (LON: INF) have responded negatively to the latest financial results, falling 2.24% through the early hours of trading. The company reported impressive financial results for 2024, but it has not been enough to move the share price out of a range which has held for more than 12 months.

With the stock back to 800p on the day, the 100 point range holds firm, despite the company showing double-digit growth in both revenue and profit, complemented by record free cash flow figures. Over the past month of trading, INF has fallen more than 9%, as the price moves back closer to the lower end of the 52 week range.

In 2024, Informa’s revenue increased by 11.4% to £3.55 billion, signaling strong performance across its operations. This growth was mirrored in the company’s adjusted operating profit, which rose by 16.5% to £995 million. Furthermore, the company achieved a significant increase in free cash flow, up by 28.6% to £812 million, showcasing robust financial health.

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Informa also reported a rise in its adjusted diluted earnings per share, which increased by 10.6% to 50.1p. The statutory operating profit climbed by 6.9% to £542.8 million, reflecting the company’s focused efforts on financial efficiency and cost management.

International expansion has been a crucial factor in Informa’s growth strategy. The company has made notable strides in expanding its presence in the Americas, GCC, and Asia, which now account for approximately 85% of its group revenue. Highlighting its commitment to global growth, Informa announced a joint venture with the Dubai World Trade Centre, forming Informa International. This collaboration is anticipated to generate over $700 million in revenue with operating margins above 30% by late 2025.

The company has set ambitious targets for the upcoming year, aiming for full-year revenue of more than £4.1 billion in 2025, excluding divested businesses. Informa also targets double-digit earnings growth for the same period. Additionally, the company increased its total dividend by 11.1% to 20p per share, underscoring its commitment to returning value to shareholders.

In 2024, Informa executed £425 million in share buybacks, resulting in total cash returns of £675 million. The company plans to restart share repurchases in 2025 with a commitment of at least £200 million. At the end of the year, Informa maintained a net debt-to-adjusted EBITDA ratio of 2.6x.