UK-based B2B information, analytics and events company Ascential Plc today (22 Sept) reported first-half revenues of £307.4mn (H1 2022: £260.7mn) and EBITDA of £78.6mn (£67.2mn). 26% margin (26%). Its WGSN product design/ forecasting business reported EBITDA up 8% to £27.4mn, events (Cannes Lions/ Money 20/20) were up by 26% while the US-based Digital Commerce was at breakeven.
CEO Duncan Painter who has been piloting a strategy to divest WGSN, IPO Digital Commerce in the US, and leave the events as a listed business in the UK, said: “The strategic actions to maximise shareholder value and position each business within the portfolio for long-term success are well advanced and we will look to update the market again by the end of the year.”
With the WGSN sell-off reportedly encountering headwinds, the company will expect intense investor questions about whether the strategy will continue (more or less on the declared timetable) or whether it will be changed in the light of tough investment conditions.
Broker Peel Hunt said: “Events drove Ascential’s strong performance in 1H, with Digital Commerce resilient. However, we expect the focus today will very much be on management’s commentary on the future of the group, given the sale of WGSN has yet to materialise.”
Ascential shares gained 7% in early trading today (Friday) but the specific questions from investment analysts will include:
- Can the £120mn-revenue/ £55mn EBITDA WGSN get the price expected (ie £600mn+) in the current market?
- Is Digital Commerce ready for IPO?
- Will the the £200mn-revenue/ £80mn EBITDA Events business get a better return for investors as a separately listed business – or by being auctioned to salivating private equity firms?
- Why not postpone the plans and wait?
