LONDON (dpa-AFX) - Euromoney Institutional Investor plc (ERM.L) said that it is undertaking a further restructure and cost reduction program, which will mainly affect its events business. It will provide further details at the full year results on the 19 November 2020.
At the the first-half of 2020 results, the company announced that it was making cash savings of 20 million pounds in the second half of the year. It is on track to achieve those savings.
It is unlikely the company will run physical events between October and December 2020, the first quarter of the company's 2021 financial year. In the first-quarter of 2020, physical event revenue was 28.2 million pounds with gross profit of 17.8 million pounds.
The company's second-quarter of 2021 results will also be impacted, if it is unable to run physical events from January to March 2021. In the second-quarter of 2020, physical event revenue was 16.9 million pounds with gross profit of 10.5 million pounds.
The company expects profit before tax for the full year ending 30 September 2020 to be ahead of consensus expectations.
The company said its financial position remains strong. Net cash at the end of August 2020 increased to 23.9 million pounds.
The company has demonstrated that it will emerge from covid-19 in a strong position and it remains confident that its strategy to transition to a 3.0 business, embedded in the workflow of its customers, is the right strategy to generate long-term value.
Copyright RTT News/dpa-AFX