DMG Information
KEY DEVELOPMENTS
- FURTHER GROWTH FROM DMGI’S STRONG BUSINESS MODELS
- RESILIENCE IN UNCERTAIN MARKET CONDITIONS
- CONTINUED EXPANSION BY RMS
Despite a year of turbulent property
and financial markets, DMGI was able
to increase operating profits* by 6%.
This reflected the crucial nature of the
information provided in our chosen
niche markets and continuing
investment in new products and
services to meet the changing needs
of our clients. On a like-for-like basis,
underlying† revenue increased by 5%.
KEY FIGURES††
INSURANCE AND FINANCIAL
Operating profit* from DMGI ’s insurance and financial companies rose by 18% to £41 million on revenues up 19% to £131 million.
Risk Management Solutions, which represents more than half of this division, continued its impressive growth record. As the world’s leading provider of solutions to assist the insurance sector in quantifying and managing catastrophe and other risks, RMS grew revenues by 19% and, whilst pursuing an aggressive strategy to expand its product range and geographic coverage, also grew operating profits* by 17%.
Notwithstanding a virtual cessation of new issuance of asset-backed securities, the importance of the surveillance and monitoring products offered by Trepp, serving the commercial mortgage-backed securities market, and Lewtan, providing services to both issuers and investors in asset-backed securities, has been evident with both companies increasing revenues and operating profits*, in Trepp’s case, by more than 20%.
PROPERTY
Operating profit* from the property companies declined by 22% to £23 million, with revenues being 13% lower at £92 million.
In the UK, the volume of housing transactions plunged to record low levels during the year. Whilst the market leading position of Landmark Information Group was at least maintained, this lack of activity in the marketplace had an adverse impact on revenues. Landmark has continued to invest in product enhancements and extensions and is well positioned for a recovery.
Commercial property transaction volumes also reduced significantly in both the US and UK, affecting Environmental Data Resources (EDR) and Landmark respectively. Both EDR and Landmark continue to be innovative, expanding their product offerings and the markets they serve. EDR grew its subscription sales strongly and successfully increased penetration of sales to commercial property lenders. Landmark acquired Inframation, a property information business based in Germany.
Property & Portfolio Research enjoyed a good year, expanding the geographic reach of their property research and growing revenues by 23%.
OTHER
Operating profit* from DMGI’s other business information companies rose by 38% to £15 million on revenues that were 18% higher at £92 million.
Genscape, a leading provider of real-time information to the energy trading markets, continued to grow strongly with revenues increasing by more than 20% and margins improving.
Hobsons’ education information business grew underlying revenues by 16%. It completed further bolt-on acquisitions, with College Confidential being added in the US and the minority in NARIC acquired in the UK. Following its successful disposal of the graduate recruitment information business in the summer, Hobsons is pursuing an aggressive growth strategy solely focused on providing products to education professionals in the preparation, recruitment, management and advancement of students.
Sanborn enjoyed a good year with strong revenue and profit growth.
In March, DMGI disposed of Dolphin Software at an attractive valuation.
OUTLOOK
The past year has demonstrated the resilience of DMGI in uncertain and turbulent market conditions. Whilst much uncertainty remains in their niche markets, all the DMGI companies are well positioned to deliver strong growth both during any upturn and through the medium term.
DMGI ’s business models are strong and the level of investment in product development and the number of growth opportunities remain encouraging.
* Adjusted operating profit (before exceptional items and amortisation and impairment of tangible assets).
† Underlying revenue or profit* is revenue or profit* on a like-for-like basis, adjusted for acquisitions and disposals made in the current and prior year and at constant exchange rates.
†† Percentages are calculated on actual numbers to one decimal place.