Conference News
June 2009 No advertorial, only editorial
Informa to raise £242m and
move tax base to Switzerland
FTSE-250 listed publisher and conference
organiser Informa is to raise £242m
through a ‘two for five rights issue’ and
will move its tax domicile to Switzerland
to avoid tax changes in the UK effective
from July.
A new parent company ‘New Informa’
will be UK listed, incorporated in Jersey
and tax resident in Switzerland.
Informa’s smaller events are suffering
more than the larger ones which,
according to a 1 May interim management
statement, “show more resilience”.
The rights issue should help Informa
reduce debt and the company’s shares
rose 16 per following the news.
Informa follows Regus and UBM, which
also moved their tax base out of the UK in
Andy Burnham fields at LCCC
Secretary of State for culture, media and
sport Andy Burnham MP took part in the
official turf cutting ceremony at Lancashire
County Cricket Club, where a new
multi-million pound conference suite is
part of the first phase in an overall £200m
redevelopment plan for the area.
The Secretary of State described the
plans as “fantastic”, adding “It is vital for
cricket in the North West to have an
international-class venue, to me it’s
non-negotiable.”
LCCC chairman Michael Cairns OBE and
Rt Hon Beverley Hughes MP also took part
the past year.
Informa chief executive Peter Rigby says
a rights issue would give the company
more flexibility to run the business in the
long-term “in an economic environment
that shows no signs of improvement”.
Rigby says the board considered
disposals as a route to increase covenant
headroom but concluded “any asset sales
would likely be at depressed prices”.
A trading update said business
continued to perform in line with
expectations.
First-quarter sales were ahead of last
year, reflecting in part sterling’s decline.
Informa says its publishing business is
growing.
As for events, the interim management
in the ceremony on the site of the new
£12m development.
The new suite is to be called The Point
and club secretary Jim Cumbes says:
“Getting the name right was essential.
Many were suggested, some
conference-led and some cricketing
terminology and many hours were spent
deliberating over a fitting name that ticks
all the boxes.”
The Point was chosen as it
encompassed a number of relevant
factors: a subtle cricket term; the design
of the venue; and a destination.
www.conference–news.co.uk
statement notes: “While the group
continues to see reasonable growth
across its telecoms and Middle East
businesses, the group has cut event
volumes further across the rest of the
small events portfolio to defend
profitability. Although the group will run
fewer events in 2009 than in 2008,
adjusted operating margin will be
reasonably protected by aggressive
management of the cost base. The
group’s larger events are demonstrating
greater resilience.”
The group admits to a £17m hit in
restructuring charges in order to generate
£33m of expected annualised cost
savings, with further cost savings to be
implemented in 2009.
P14 P18
P30 P47
INSIDE:
P14: Second Life, new business?
P18: Experiential events
P30: Team Glasgow’s plan
P47: Party at the White House
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