Financial News

Audited annual results for the year ended 31 December 2013

Headline* revenue growth of 12%

Top Right Group increases growth momentum, with particularly
strong performances by Lions Festivals and GroundSure

London, 23 June 2014: Top Right Group, the global business-to-business multiplatform media group, today announced its financial results for 2013, reporting Group revenue of £271.4 million, with headline growth of 12% and an organic** growth rate of 9% (2012: 7%). Top Right Group has three business segments: Events, Information Services and Subscription Content.

Highlights

FY 2013

FY 2012

Revenue

£271.4m

£251.7m

EBITDA

£68.8m

£70.3m

Organic** revenue growth

9%

7%

  • Eight new geo-cloned and launch events
  • Launched three major products: WGSN INstock, Movers by Glenigan and .MAP by GroundSure
  • 43% of revenues came from international activities
  • Acquired three significant businesses: Educar/Educador and Mindset in Brazil and Stylesight, Inc. in the US
  • Shareholders remain confident in the growth strategy of the business.

 

Duncan Painter, Chief Executive, Top Right Group, said: “2013 was a year of increasing momentum. We pursued our strategy to grow our business by providing greater value to our customers for the same price, which resulted in better customer retention and an overall increase in the number of products and services our clients purchased from us.  We met our strategic aim to deliver double digit headline* growth.  We also aimed to launch more new products in 2013 than in the year before. Launches included our first ‘big data’ product, WGSN INstock and eight successful geo-cloned events by i2i. Our core brands are now well positioned to further accelerate performance in 2014 by continuing to deliver our strategy and better supporting our customers’ needs."

Tom Hall, Partner Apax and Chairman Top Right Group, said: "A headline* growth rate of 12% demonstrates that the investment made by the Group to create the right environment for the core brands to flourish is starting to achieve results. The gains were driven by continued expansion in the Lions Festivals business and another strong performance from GroundSure. EMAP, the subscription content business again grew, up 3% year on year."

Andrew Miller, Chief Executive, Guardian Media Group, said: “Top Right Group has made real progress over the last year and is well placed to serve the needs of a rapidly evolving market.”          


As expected, EBITDA dipped £1.5m largely due to the sale of CAP Motor Research which had contributed £5.0m of EBITDA in 2012.  In 2013, the Group continued to invest in new products and services and acquired three important businesses which are expected to contribute significantly to future growth. As part of its successful renegotiation of its financing arrangements in January 2013, the Group paid down borrowings of £132.3m during the year, before drawing additional funds in November 2013 to enable WGSN, Inc. to acquire Stylesight, Inc.

Looking at each segment of the Top Right Group business:

Events
The Events segment – comprising i2i Events Group and Lions Festivals - grew 13% on an organic** basis and generated revenues of £121.3m (2012: £101.7m).
The primary drivers of growth were:

  • an increase of around 5% in overall exhibition space sold by i2i;
  • opening eight new events worldwide;
  • 4% growth in volume of entries for Cannes Lions; and
  • an increase of more than 12% in total delegates paying to attend our festivals or congresses.

i2i Events Group is a leading provider of UK and international exhibitions and congresses. Offering nearly 40 unmissable opportunities to network and trade, i2i brings together more than 260,000 customers every year. i2i owns leading events including Bett, serving the education technology sector; Spring Fair, Europe’s largest home and gift fair and World Retail Congress, widely recognised as the  meeting place for the world’s top retailers. Its event portfolio also serves the waste management, fashion, health, energy, broadcasting, architecture and industrial markets, providing all sectors with relevant, quality events.  Lions Festivals organises six world-class events, including Cannes Lions, the International Festival of Creativity. It enables inspiration, networking and learning and celebrates thousands of examples of creative excellence submitted from more than 90 countries.

With strong international performances, particularly from Cannes Lions, Bett and Coil Winding, the events businesses significantly increased their reach and customer base in 2013. To strengthen its events portfolio, the Group acquired Educar and Educador, the premier education exhibition and congress in Latin America. In an exciting partnership with UKTI, i2i now jointly hosts buyer programmes, webinars and networking events to benefit customers and visitors at i2i exhibitions and congresses.

Information Services
WGSN Group and 4C Group, together the Information Services segment, delivered revenues of £75.0m (2012: £76.3m) and grew by 9% on an organic** basis led by:

  • a 3% increase in overall retention to 84% (with Planet Retail achieving over 90%) and
  • net customer volume growth of 8%.

WGSN Group is a strategic intelligence, insight and trends company. It acts as a trusted knowledge partner to help businesses to see and stay ahead. It products, combining deep intelligence, understanding and sharp creative judgement, are designed to help consumer product companies and retailers to reduce risk and improve their business performance.

2013 was a year of significant change as WGSN Group completed strategic acquisitions, accelerated its Advisory service and launched new capabilities. In September 2013, the Group launched WGSN INstock, its first ‘big data’ product, which captures and tracks more than 3,000 brands to build a searchable record of product ranges, price architecture and stock levels. Mindset, WGSN’s former marketing partner in Brazil, joined the Group and WGSN’s trend business underwent an international step change in November 2013 when WGSN, Inc. acquired Stylesight, Inc., a US-based trend information service.

4C Group is a subscriptions and transactional business with a strong and resilient revenue base driven by high renewal rates and steady new business wins. It offers a comprehensive portfolio of leading intelligence products for the construction, environmental and political industries. In 2013, it combined the MEED Projects and Glenigan brands to form a projects business focused on the UK, Middle East and African built environment markets.

Glenigan and GroundSure both successfully launched new products into adjacent sectors. Movers, from Glenigan, provides intelligence on commercial opportunities for fit out and refurbishment specialists. GroundSure continued from strength to strength in its core market and launched .MAP by GroundSure, a mapping tool overlaid with planning information and environmental risk alerts providing a single, robust view for architects, developers and consultants.

Subscription Content
The subscription content businesses, EMAP and MBI, generated revenues of £75.1m (2012: £73.7m), to deliver a 3% organic** growth. 

EMAP is a growing UK and Middle East subscription and content business, with multiple platform and product iterations. For its 82,500 hard-to-reach, professional subscribers, it creates high-value business information that helps them and their businesses grow and prosper. In 2013 EMAP led national coverage of the Francis enquiry following the Mid Staffs patient safety scandal, unveiled tablet products for Health Service Journal and Retail Week, which have had thousands of downloads and laid the foundations of HSJ Intelligence, a product conceived to help private sector suppliers pinpoint and target where their greatest opportunities in the NHS lie. Its thriving events business grew 6%, welcomed more than 35,500 customers and launched the Construction News Summit.  Key EMAP performance drivers were a focus on corporate subscriptions, continued content excellence and the expansion of marketing solutions and events business lines.

Leading brands for the marketing services, film and TV sectors in the MBI portfolio are ALF; BRAD; Broadcast; Screen International and shots. Broadcast is the essential resource for UK broadcasting, while BRAD is a high-value media planning tool that delivers data on 12,500 media brands used by agencies and advertisers for campaign planning. ALF is a prospects and new business product with data on 16,500 brands – including key contacts and advertising spend across 33 market sectors. The business has an average of 387,000 unique users per month and more than 83,000 registered users on its database.

 

43% of Top Right Group revenues in 2013 were generated outside the UK, up six points on a year earlier. Top Right Group’s core focus remains to attract and retain more customers through better customer service and to increase the number of knowledgeable, trusted products and services they rely on the Group to provide. www.topright-group.com

 

Ends

For more information, please contact:
Jane Windsor, Director of Corporate Communications, Top Right Group, jane.windsor@topright-group.com or +44 (0)7775 523156

 

Notes to editor:

* Headline growth excludes the impact of the disposal of CAP Motor Research in 2012 and of AME Info and Infrastructure Journal in 2013.

** Organic growth is calculated at constant currency and pro-forma for acquisitions and disposals assuming a transaction date of 1 January 2012 

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