DMG INFORMATION

DMG INFORMATION HAD AN EXCELLENT YEAR WITH UNDERLYING REVENUES (EXCLUDING THE IMPACT OF ACQUISITIONS) INCREASING BY 22%, OPERATING PROFIT* INCREASING BY 53% AND OPERATING PROFIT* MARGIN IMPROVING TO 20%.

FINANCIAL HIGHLIGHTS
* Adjusted operating profit (before exceptional items and amortisation and impairment of intangible assets).
All references to prior year numbers are to figures prepared under IFRS.


TREPP’S INDUSTRY STANDARD INFORMATION AND ANALYTICS PLATFORM CONTINUES TO SUPPORT FIXED INCOME TRADERS AND INVESTORS IN A CMBS MARKET WHERE VOLUMES EXCEEDED US$240 BILLION GLOBALLY IN 2006.

LANDMARK HAS SOLD OVER 1,000,000 ENVIROSEARCH RESIDENTIAL REPORTS SINCE IT LAUNCHED THE SERVICE TO LAWYERS, CONVEYANCERS AND PROPERTY PROFESSIONALS IN 2000. THE FIGURE REFLECTS A RAPID GROWTH IN DEMAND FOR ENVIRONMENTAL REPORTS TO THE EXTENT THAT LANDMARK NOW SELLS NEARLY 2,000 REPORTS TO THE LEGAL PROFESSION EVERY DAY.

Operating profit* from DMGI’s financial and insurance division rose by £14 million or 70% to £33 million on revenue up 27% to £100 million. Risk Management Solutions (RMS) continued its record of strong growth, based on the increasing demand for sophisticated modelling of catastrophes and of other perils by the insurance sector. During the year RMS successfully released its most comprehensive product upgrade to date, including new versions of its core US earthquake and hurricane models, with the latter incorporating the latest science and data from the highly active 2005 US hurricane season. New advisory and analytical services were also successfully introduced. RMSI, our Indian-based geographic information services company, achieved record revenues, and during the year was transferred back under RMS management, in order to play a key role in RMS’s plan to grow its data services business for the insurance industry.

Our financial information companies, Trepp and Lewtan, had excellent years. The level of new issuance in the commercial mortgage-backed securities market, served by Trepp, reached record levels which assisted Trepp in continuing its excellent growth record whilst Lewtan’s growth included expansion of its European offerings for the whole asset-backed securities market and in its products serving issuers.

Operating profit* from the property division rose by £5 million or 22% to £27 million on revenue up 19% to £92 million. Landmark Information Group enjoyed an excellent year. A resurgent UK home property market saw transaction volumes increase by approximately 20% and was coupled with further growth in sales of electronic mapping and environmental reports to participants in the commercial property market. Shortly after the year end a product to serve the Dutch home property market was launched.

Environmental Data Resources, operating in the US, experienced less favourable market conditions, with the volume of transactions remaining flat year on year. EDR was still able to grow satisfactorily by further expanding its products to commercial property lenders and made progress into establishing a market for home environmental reports.

Property & Portfolio Research had a good year, increasing the number of US cities covered by its property research services and launching coverage of major European cities.

Operating profit* from our other business to business companies rose by £3.5 million or 80% to £8 million on revenue up 36% to £64 million. This included Genscape, the market leading provider of real-time energy generation and transmission information to North American and European markets. Genscape has met all expectations since its acquisition in May, and continues to expand its product offering.

For the second year revenues at Sanborn grew sharply with a number of large state and Federal contracts being won. Dolphin continued to make reasonable progress in developing hazardous chemical inventory management products, setting the stage for higher growth in 2007.

Hobsons had another excellent year delivering a substantially increased profit. The driver of growth was primarily the US business which offers publishing and technology recruitment solutions to US colleges but the Australian business also grew strongly and there was a pleasing upturn in Germany after several difficult years.

Study Group traded substantially up on last year and was successfully sold in September for £75 million.

Outlook

The prospects for DMGI remain encouraging. The businesses are identifying opportunities to expand organically and, while this may result in some additional short-term revenue investment, it augurs well for their longer-term growth prospects.