6
For footnotes, please see page 34.
Events & Exhibitions
Full Year
2024
£m
Full Year
2023
£m
Growth4
Revenue
272
163
+67%
Statutory¹ operating profit
42
20
+108%
Adjusted² operating profit
43
21
+104%
Statutory¹ operating margin
16%
12%
Adjusted² operating margin
16%
13%
The Events & Exhibition business, dmg events, has continued to grow, benefitting from increases in
exhibitors’ demand and visitor attendance across the portfolio of events. Revenues of £272m were more
than double the levels achieved prior to the Covid-19 pandemic and adjusted operating profit of £43m
was also significantly ahead. There was continued growth from the core business, including the five
largest existing annual events: ADIPEC, the Abu Dhabi-based energy show; Big 5 Global in Dubai and
Big 5 Saudi, the construction events; Gastech, the energy event that was held in Houston in September
2024; and EGYPES, the Egyptian energy event. Events based in Saudi Arabia delivered particularly
notable growth during the year. The business also continues to invest in launching new events,
particularly in the Middle East and Africa.
In addition to growing its own core business, dmg events has increased the number of managed events
that it operates on behalf of third parties. For the first time, dmg events was involved with COP, the
annual United Nations Climate Change conference, managing the Blue Zone at COP28, which was held
in Dubai in December 2023. This delivered a substantial benefit to financial performance, contributing
to dmg events’ total revenue growth, across the core business and managed events, of 67% compared
to the prior year. Managed events tend to deliver a relatively low gross margin and the revenues from
this part of the business are volatile, depending on the contracts delivered in any given year.
The adjusted operating margin increased from 13% to 16%, benefitting from the operational gearing of
relatively stable overheads.
Corporate costs
Corporate adjusted operating costs were £30m, in line with the prior year. Corporate statutory
operating costs, including exceptional operating costs and the amortisation of acquired intangible
assets arising on business combinations, were £36m, a 27% reduction from £50m in FY 2023, which
included £19m of exceptional non-cash charges in respect of pension past service costs.
Joint ventures, associates and investments
DMGT holds minority stakes in early-stage businesses, primarily through its dmg ventures arm. The
Group’s net share of adjusted operating losses from its joint ventures and associates was £nil in the year,
a reduction from a £2m loss in FY 2023. As explained in the Consumer Media section on page 5, a new
joint venture company was created during the year, combining the newspaper printing operations of
dmg media and News UK in Great Britain. DMGT’s financial statements include a 50% share of the joint
venture’s financial performance since it commenced trading in June 2024. On a statutory basis, the
share of results of joint ventures and associates was a loss of £1m, compared to £19m in FY 2023.
DMGT also holds smaller stakes in early-stage investments and occasionally invests opportunistically
in more established companies. The Group does not recognise a share of profits or losses from these
companies, as the percentage holdings are too small or DMGT’s level of influence insufficient for them
to be associates.
Net finance expenses
Adjusted net finance expenses, including investment revenue, were £9m, compared to £12m in FY 2023,
reflecting the benefit of reduced bond debt.
8
For footnotes, please see page 34.
of overdrafts, totalled £68m at the year end. The Group’s committed bank facilities, which mature in
May 2027, were £201m at the year end and were undrawn.
Cash outflows in the year included £21m of dividend payments, £9m of net interest payments and £29m
in respect of operating exceptional items.
Pension schemes
The Group’s two remaining defined benefit pension schemes provide retirement benefits for former
and existing UK-based employees. These schemes are closed to new entrants and to the future accrual
of benefits for existing members.
The DMGT Board places the highest importance on ensuring that all pension benefits are fully paid and
responsibly funded. Given the strong financial position of the schemes, no payments to the pension
schemes were made during the year and no further payments are currently expected.
The pension schemes’ surplus, calculated on an IAS 19 accounting basis, was £690m as at 30 September
2024 and the related deferred tax liability was £173m. The actuarial valuations, on a Technical
Provisions basis, are considered by the Board and pension schemes’ trustees to be more relevant for
assessing the funding position of the schemes than the accounting basis calculation. The most recent
actuarial valuations of the schemes were as at 31 March 2022, prior to the merger of two schemes, and
the total surplus of the two larger schemes was £531m. The most recent actuarial valuation of the
smallest scheme was as at 31 March 2021 and the deficit was £9m. For more information, please see
Note 33, ‘Retirement benefit obligations’, of the Notes to the Financial Statements.
Key performance indicators
Due to DMGT holding a changing portfolio of different companies, many key performance indicators
(‘KPIs’) that are targeted by individual businesses are not appropriate at a consolidated Group level.
Examples include customer numbers, revenue per customer, employee productivity and employee
engagement.
DMGT’s KPIs are alternative performance measures (‘APMs’) rather than statutory measures as the
APMs are considered by the Board and executive management to be particularly informative. The
Group’s KPIs are the adjusted revenue growth rate, adjusted operating profit, cash operating income
(‘Cash OI’), adjusted profit before tax, adjusted profit after tax and the net debt:EBITDA ratio.
Please see the table on page 3 and comments on pages 3 to 7 in respect of the revenue and profit KPIs.
Please see the ‘Net debt and cash flow’ section on page 7 in respect of the net debt:EBITDA ratio.
Cash OI is used by DMGT to assess the cash generation of its businesses and is calculated by adding
back expenses for depreciation and amortisation not arising on business combinations, which are non-
cash items, to adjusted operating profit and then deducting capital expenditure. The depreciation
adjustment includes the charge resulting from cumulative capital expenditure on right of use assets, as
well as depreciation of property, plant and equipment. Capital expenditure excludes expenditure on
non-depreciating assets. Cash OI increased by 73% to £94m as per the table below. The dynamics were
similar to those for adjusted operating profit, with the growth being due to Events & Exhibitions and
Consumer Media.
Full Year
2024
£m
Full Year
2023
£m
Growth/
(contraction)4
Adjusted operating profit
87
55
+60%
Depreciation
12
15
(23)%
Amortisation not arising on business combinations
3
3
(7)%
Capital expenditure
(8)
(19)
(58)%
Cash operating income
94
54
+73%
Business model
DMGT's market-leading businesses deliver products and solutions with engaging content. The Group
provides consumers and businesses with compelling information, analysis, insight, events, news and
entertainment. This is monetised through five revenue models: subscriptions, notably in the US
Property Information business and within Consumer Media; circulation from sales of the paid-for
newspapers; advertising in the Consumer Media products; events attendance and sponsorship
revenues, notably exhibitor fees; and revenues dependent on transaction volumes, notably of UK
properties. DMGT draws on its culture, values, talent, technology and customer and supplier
relationships in order to create, deliver and monetise its products and solutions. For more
information on DMGT's revenue recognition policies, please see Note 2, 'Significant accounting
policies', of the Notes to the Financial Statements. In addition to its portfolio of subsidiary operating
companies, DMGT invests in minority stakes in early-stage businesses, primarily through dmg
ventures.
Code of Conduct. Group policies and DMGT Essentials
DMGT's Code of Conduct includes standards for equal opportunities, anti-bribery, conflicts of interest
and fair competition, among other topics. It also contains clear guidance regarding equality, diversity
and inclusion. Many of the topics in the Code of Conduct are supported by detailed policies and
procedures for DMGT's employees. In addition, stand-alone policies regarding equal opportunities,
entertainment and gifts, information security, data protection and privacy, and health and safety,
apply to DMGT employees. These policies, as well as the Code of Conduct, safeguard the welfare of
DMGT's employees and the integrity of its business. All DMGT policies are available for employees to
access on a Group-wide Policy Microsite. Where appropriate, certain policies, including DMGT's anti
bribery and corruption policy, are also housed on the DMGT website, www.dmgt.com, along with the
Code of Conduct.
DMGT Essentials is an internal governance guide for the management teams of each operating
company and compliance is mandatory. It is updated regularly and, each year, the management
teams of each operating company confirm that they have shared relevant excerpts with appropriate
employees and that they will continue to comply with it. DMGT Essentials is extensive and includes
content on: core processes and controls; roles and responsibilities; authorisation thresholds;
insurance; property; tax; treasury; legal; contract retention; generative artificial intelligence;
remuneration; and international mobility. It is designed to be read in conjunction with the Code of
Conduct and Group policies. Operating companies' own policies and codes of conduct are reviewed
for consistency with DMGT's policies, Code of Conduct and DMGT Essentials.
There is a rolling review programme to update DMGT's policies and deliver continuous compulsory
training to reinforce compliance. Employees who have concerns regarding criminal activity, gross
misconduct and/or a breach of the Code of Conduct or supporting policies have a duty to report such
activity. Any concerns raised are reported upwards to management, to DMGT executive management
and/or to the Board as appropriate. DMGT also operates a confidential 'Speak Up' facility to
encourage such reports where an employee feels unable to discuss a matter internally. The Speak Up
facility is actively promoted to employees and managed externally by a specialist third party.
For and on behalf of the Board of Directors
;, ,.
The vfs unt Rothernihre
Chairman
27 November 2024
For footnotes, please see page 34.
23
Directors' confirmations
Each of the directors, whose names and functions are listed in this Directors' Report confirm that, to
the best of their knowledge:
•
the Group financial statements, which have been prepared in accordance with UK-adopted
international accounting standards, give a true and fair view of the assets, liabilities, financial
position and profit of the Group;
•
the company financial statements, which have been prepared in accordance with United
Kingdom Accounting Standards, comprising FRS 101, give a true and fair view of the assets,
liabilities and financial position of the company; and
•
the Strategic Report includes a fair review of the development and performance of the business
and the position of the Group and company, together with a description of the principal risks
and uncertainties that it faces.
In the case of each director in office at the date the directors' report is approved:
•
so far as the director is aware, there is no relevant audit information of which the Group's and
company's auditors are unaware; and
•
they have taken all the steps that they ought to have taken as a director in order to make
themselves aware of any relevant audit information and to establish that the Group's and
company's auditors are aware of that information.
F(<1tffl · alf of the Board of Directors
/