Huveaux is today making the following trading update ahead of its half-year results 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 revenue as compared to the first half of 2006. This is as a direct result of pharmaceutical companies cutting their advertising budgets across the board in response to the sharp rise in generic drugs. The revenues from our Continuing Medical Education accredited publications and other product offerings have started to flow through, but these have not been sufficient to offset the impact from the decline in pharmaceutical advertising. Accordingly, the outlook for the year is that sales and EBITDA of the Healthcare Division will be significantly lower than in 2006.
Nevertheless, the expected performance of the Healthcare Division in 2007 will still 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 revenue growth. Its market-leading positions in London, Paris and Brussels continue to be strengthened and the outlook for the year remains very positive.
Learning Division
This division has been impacted by training budget cuts in Government Departments during the first half of 2007. Sales have started to recover during the 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 than in 2006.
Education Division
The Education Division is making very good progress with strong organic growth in both sales and EBITDA. Under Huveaux’s new ownership, the historic revenue decline at Letts has been reversed and Lonsdale’s sales are up significantly on last 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 the Education Division is therefore excellent.
The Company continues to make strategic progress in key areas and is strongly committed to increasing shareholder value. Accordingly, the complementary acquisition of the European Public Affairs Directory was completed in May and our small contract publishing business in the Healthcare Division was sold in June. A review of our paper and print costs is also likely to have a beneficial effect on the 2008 results.
Management has initiated a recovery programme and further details will be included in the half-year results announcement.
For further information, please contact:
Huveaux
John van Kuffeler, Executive Chairman
Gerry Murray, Chief Executive Officer
Dan O’Brien, Group Finance Director
020 7245 0270
Finsbury
James Leviton
Don Hunter
020 7251 3801
About Huveaux:
Huveaux PLC is a public limited company listed on the Alternative Investment Market (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 13 acquisitions 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 and market 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 Division comprises Dods Parliamentary Companion, The House Magazine, Epolitix.com and numerous other political magazines, reference books, monitoring products and revenue-generating websites as well as events, awards and recruitment services.
Healthcare Division
One of the leading providers of specialist B2B publications and online education for the medical sector in France. The Division comprises Panorama du Medecin, a leading weekly magazine for French doctors, Le Concours Medical and La Revue du Praticien, market-leading Continuing Medical Education magazines, Egora.fr, the leading medical information website, a medical conference business and a number of other magazines and reference materials.
Learning Division
A leading provider of resources to learning communities in the UK, including e-learning solutions for the public and private sector and blended learning solutions, seminars and events for the political, public affairs and training markets. The Division comprises Epic, the UK market leader in e-learning, The TJ magazine and the highly acclaimed Westminster Explained conferences and seminars business.
Education Division (established 1 January 2007)
Huveaux is today making the following trading update ahead of its half-year results 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 revenue as compared to the first half of 2006. This is as a direct result of pharmaceutical companies cutting their advertising budgets across the board in response to the sharp rise in generic drugs. The revenues from our Continuing Medical Education accredited publications and other product offerings have started to flow through, but these have not been sufficient to offset the impact from the decline in pharmaceutical advertising. Accordingly, the outlook for the year is that sales and EBITDA of the Healthcare Division will be significantly lower than in 2006.
Nevertheless, the expected performance of the Healthcare Division in 2007 will still 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 revenue growth. Its market-leading positions in London, Paris and Brussels continue to be strengthened and the outlook for the year remains very positive.
Learning Division
This division has been impacted by training budget cuts in Government Departments during the first half of 2007. Sales have started to recover during the 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 than in 2006.
Education Division
The Education Division is making very good progress with strong organic growth in both sales and EBITDA. Under Huveaux’s new ownership, the historic revenue decline at Letts has been reversed and Lonsdale’s sales are up significantly on last 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 the Education Division is therefore excellent.
The Company continues to make strategic progress in key areas and is strongly committed to increasing shareholder value. Accordingly, the complementary acquisition of the European Public Affairs Directory was completed in May and our small contract publishing business in the Healthcare Division was sold in June. A review of our paper and print costs is also likely to have a beneficial effect on the 2008 results.
Management has initiated a recovery programme and further details will be included in the half-year results announcement.
For further information, please contact:
Huveaux
John van Kuffeler, Executive Chairman
Gerry Murray, Chief Executive Officer
Dan O’Brien, Group Finance Director
020 7245 0270
Finsbury
James Leviton
Don Hunter
020 7251 3801
About Huveaux:
Huveaux PLC is a public limited company listed on the Alternative Investment Market (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 13 acquisitions 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 and market 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 Division comprises Dods Parliamentary Companion, The House Magazine, Epolitix.com and numerous other political magazines, reference books, monitoring products and revenue-generating websites as well as events, awards and recruitment services.
Healthcare Division
One of the leading providers of specialist B2B publications and online education for the medical sector in France. The Division comprises Panorama du Medecin, a leading weekly magazine for French doctors, Le Concours Medical and La Revue du Praticien, market-leading Continuing Medical Education magazines, Egora.fr, the leading medical information website, a medical conference business and a number of other magazines and reference materials.
Learning Division
A leading provider of resources to learning communities in the UK, including e-learning solutions for the public and private sector and blended learning solutions, seminars and events for the political, public affairs and training markets. The Division comprises Epic, the UK market leader in e-learning, The TJ magazine and the highly acclaimed Westminster Explained conferences and seminars business.
Education Division (established 1 January 2007)
The leading supplier of study aids and revision guides in the UK, with full product coverage across all subjects and stages of the entire curriculum in UK schools. The Division comprises Lonsdale, Letts Educational and Leckie & Leckie.
The leading supplier of study aids and revision guides in the UK, with full product coverage across all subjects and stages of the entire curriculum in UK schools. The Division comprises Lonsdale, Letts Educational and Leckie & Leckie.