UBM has reported trading for the year to date is on track to deliver accelerated adjusted underlying revenue growth in annual events for the full year. The organiser has not disclosed figures but said financial results would be in line with the global B2B exhibitions industry average.
The September Hong Kong Jewellery & Gem, CBME, Furniture China, World Routes and Black Hat shows all performed strongly in the third quarter.
In October, CPhI Worldwide and its co-located pharma events also delivered a strong performance. Although the Fashion sector declined, UBM said it was broadly in line with expectations.
UBM said the integration of Allworld is progressing to plan and performance continues to be ahead of the business case.
Life Sciences, the majority of which is in OMS, continues to experience softness as the industry adapts to changing market conditions in North America and drug approvals also remain slow.
Since the half-year, two bolt-on acquisitions have been made in the fast-growing renewable energy and medical aesthetics sectors, both at attractive multiples.
Total spend on bolt-on acquisitions in the year to date is £13.4m. The pipeline remains good with further deals expected to close before the end of the year. During the period a small portfolio of UK assets was disposed of for £3.2m and further small disposals are being negotiated.
Given the strength of the recent trading performance and notwithstanding the impact of more recent FX movements, the board is confident of a full year out-turn at least in line with its expectations as communicated at the interim results.
The board has concluded its review of the dividend policy. The updated policy, which will apply from 2018, is to pay a progressive dividend centred around 2x cover through economic and biennial cycles and taking into consideration impact from currency movements.
UBM has also reported that acquisitions in this period, including the Mexico International Renewable Energy Congress (MIREC) and the Argentinian International Renewable Energy Congress (AIREC), have strengthened its presence in Latin American. The latter marks its first step into Argentina.
The events are highly complementary to UBM’s existing portfolio, which currently includes Renewable Energy India Expo, The Battery Show USA and a renewable energy event series in Southeast Asia.
The addition of The Aesthetic Show assets provided an attractive entry point to the fast-growing North American aesthetic medical event market.
“It is a strong strategic fit with UBM’s existing Life Sciences portfolio which already serves the aesthetics market through media brands such as Cosmetic Surgery Times and Dermatology Times,” the organiser said.
On a combined basis, the bolt-on businesses acquired are expected to generate c£6m of revenue in 2017, of which c£1m will feature in UBM’s 2017 reported revenues.
In June, UBM reported that its events revenue grew 2.7 per cent. The organiser attributed the growth to its Events First strategy.