FTSE 100’s listed event organizer Informa (LON:INF), saw its stock crashed to half the level of its year-long level, and released another update showing that the recovery is on the horizon.
The company, which has the Covid Financing Action Plan, said it would “provide long-term stability and security associated with the balance sheet, with no maturities of debt until 2023, no financial contracts of over £1 billion, no liquidity available.
This followed a nine-month fundraising effort, including the next issue of £150 million in Sterling bonds. It issues £640 million euro bonds with a maturity of five years. £1 billion was raised through share placement. The company has cancelled its US private placement loan notes by securing a short-term surplus credit line of £750 million and a £1.1 billion £1.1 billion.
Informa said it will continue its cost management programme to win £600 million by the end of 2020 as it has completed its funding action plan.
The company added that pre-closure renewals will be offered at the end of the 2020 trading year, given the six-month results were issued in late September.
Speaking about the action company’s action plan and progress in funding, Group CEO Stephen Carter said:
“Informa has been building stability and security since 2021 and reflects the continued strength in digital subscriptions, the progressive reopening of physical events in mainland China and other parts of Asia, and the continued cost and cash management programme, as well as the growth of virtual events and media brands as a whole.”
He added: “Following our nine-month activity program, we have now concluded a restructuring, refinance and rescheduling of our debt. Combined with the ongoing delivery of our Covid-19 action plan, this means that Informa is on track to provide positive free cash flow with available liquidity of over £1 billion since early 2021.”
Despite positive news, Informa shares fell 4% to 5% on Wednesday, exceeding 543p per share. The company’s shares rose about 27% in one session, as this was likely a bounceback from an overly excited response to vaccine hopes on Tuesday.
Prices today are ahead of the company’s 354p lows seen in September, but analysts’ target price is behind 644p per share. Analysts currently have a consensus “buy” stance on stocks, but the MarketBeat community gives it a 50.98% “underperformance” rating.
