DMG INFORMATION

DMG Information had an outstanding year with all companies making good progress and operating profit* growing by 41%.

Business to Business division

This division was once again the main driver of growth, with underlying revenues (excluding the impact of acquisitions) increasing by 14% and underlying operating profit* by 38%. Operating profit* margin improved to 29%.

Risk Management Solutions continued its strong growth trajectory. The increasing appetite of the insurance sector for more sophisticated quantification of risk exposure, together with the trend for closer integration of peril modelling into core underwriting processes, is driving demand for RMS products and services.

Financial highlights
Turnover
£295m
Operating profit*
£52m
Operating margin*
17%
* Adjusted operating profit (before exceptional items and amortisation and impairment of
intangible assets)

Environmental Data Resources enjoyed an excellent year in a buoyant U.S. commercial property market. Pleasing progress was made in providing products and services to commercial property lenders.

In the U.K. the home property market for environmental reports was depressed, although with some improvement becoming evident in the final quarter. It is pleasing that in such market conditions Landmark was still able to grow revenues through increasing market penetration. Strong growth was achieved in the commercial property market from sales of both mapping and environmental reports.

Property & Portfolio Research had a satisfactory year, and shortly after the year end launched a service covering major European cities to complement its U.S. property research services.

Trepp continued its excellent growth trend in a buoyant commercial mortgage-backed securities market. The company successfully expanded its product range to cover loan portfolios held by single investors.

EDR provides information to support over 215,000 real estate transactions in the U.S. In 2005, it continued its diversification as new environmental information services were launched in the commercial banking and residential disclosure markets. EDR expects that these emerging markets will provide considerable growth opportunities.

Lewtan’s performance exceeded expectations at the time of its acquisition in November 2004. Revenues grew strongly, both in the U.S. and in the emerging European market, for asset-backed securities.

The expanded range of hazardous chemical inventory management products at Dolphin was the catalyst for strong revenue growth.

Revenues at Sanborn picked up strongly and the Solutions business acquired from Space Imaging in March was successfully integrated.

RMSI, our Indian based geographic information services company, also achieved satisfactory growth.

Careers division

This was another pleasing year at Hobsons. The U.S. business, including Academic Engine, was the main driver of the growth whilst trading remained more difficult in the U.K. and continental Europe. Hobsons Australia had an outstanding year.

Study Group performed satisfactorily. The U.K. had another solid year, the USA continued its encouraging recovery trend whilst student volumes softened into Australia and New Zealand in line with the market there, a trend which was reversing by the year end.