Emap polishes up its gloss

The media group looks in sparkling form after its move into commercial radio and French publishing

FISH and local newspapers are not what most people would identify as the classic ingredients for entrepreneurial success, unless of course you are Harry Ramsden. But take a handful of regional papers, add a specialist interest magazine - Angling Times, launched in 1953 - and you have in Emap's case the makings of a media empire.

Emap - East Midland Allied Press as it still was until 1985 - has come a long way since then, transforming itself into an international media group, including moves to establish itself in the commercial radio market, with interests in 11 stations.

Architects of Emap's considerable expansion since the mid-1980s are the chief executive, Robin Miller, and group managing director, David Arculus, who make up a highly rated double act.

Now capitalised at over pounds 1.1bn, Emap has long had FT- SE 100 ambitions, set to be fulfilled if growth continues.

Indeed, in a broad media sector rattled by big changes this year - new rules on cross-media ownership and collapse of the Net Book Agreement - Emap has continued to win City plaudits and seen its share price increase outperform the market by around 15 per cent.

Interim figures are due on 20 November, with profits of around pounds 34m expected. In the wake of Emap's pounds 265m spending spree last year, and the pounds 100m addition of Metro Radio at the beginning of this financial year, analysts will be looking closely at how well the recent acquisitions are settling in.

The focus at the half-year will be on the two newest divisions - commercial radio and Emap France - both viewed by analysts as key pointers to future growth.

The acquisition of Newcastle-based Metro Radio in June boosts Emap's position as the second-largest commercial radio operator after London's Capital Radio. It also gives it a lucrative hold on the fastest growing advertising medium in the UK, which grew by 25 per cent in 1994 and is set for a further 15 per cent growth this year.

"Radio will contribute around 20 per cent of our profits in the full year," says David Grigson, the finance director, "and we expect this share to grow over the next two to three years."

While Emap is constrained by media ownership rules from adding more stations, further profits growth is expected once the benefits of initiatives such as centralising its advertising sales operation begin to flow through. Opportunities for expansion are likely, however, as more broadcasting licences are issued.

Analysts are also looking for good news on Emap France, where its consumer magazines range from Le Chasseur Francais to weekly TV guide Tele Poche. It is still early days for this division, but the group clearly sees France as a springboard to European expansion. It is under no illusions, however, as to the competition it faces. "There are a number of big hairy monsters already playing this game," says Mr Grigson, pointing to European media empires such as Hachette and Bertelsmann.

Emap is unlikely to become too starry-eyed about prospects in Europe while its core UK consumer and business publishing business continues to power ahead. Last year, consumer magazines contributed around 40 per cent of group profits as the diverse stable of titles reaps the benefits of the current advertising boom.

Next month sees the arrival of Total Sport, from the division that publishes titles such as Q, Empire and FHM, and just in case it has missed any motor bike fans with its existing six titles, including Motor Cycle News, Emap recently launched Ride.

"Even in relatively mature markets, it shows there is room for new products," says Mr Grigson. But Emap does not always get it right. Closing Carweek last year cost it nearly pounds l0m.

Business magazines and the range of linked exhibitions, conferences and directories - and increasingly information via electronic media - provide a further rich vein for Emap to mine.

Reed's planned sale of regional newspapers has prompted speculation that Emap might yet review its involvement in its regional titles. "They are a smaller part of Emap than they used to be," Mr Grigson admits, "but we have a good regional business that is growing."

The impact of recent acquisitions and Emap's impressive track record means expectations are high. The shares are on the "buy" list of several brokers and full-year forecasts for Emap put profits at around pounds 83m against pounds 64m last time.

"Emap is showing some of the strongest earnings growth in the sector, and its scores will continue to outperform the market," says Neill Junor at the house broker NatWest Securities. The current p/e around 24 looks high, but analysts say this is not unusual. "It is still at a discount to Reed and Reuters."


Share price 547p Prospective yield 1.9% Prospective p/e ratio 19.6 Dividend cover 2.5 1994 1995 1996*

Sales pounds 362m pounds 547m pounds 680m Pre-tax profits pounds 45.7m pounds 63.9m pounds 83.8m Earnings per share 16.6p 22.2p 27.9p Dividend per share 8.52p 9.75p 10.75p

* BZW forecast

Start your day with The Independent, sign up for daily news emails
newsAnother week, another dress controversy on the internet
Life and Style
Scientist have developed a test which predicts whether you'll live for another ten years
Life and Style
Marie had fake ID, in the name of Johanna Koch, after she evaded capture by the Nazis in wartime Berlin
historyOne woman's secret life as a Jew in wartime Berlin
news... and what your reaction to the creatures above says about you
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Day In a Page

Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot
Poldark star Heida Reed: 'I don't think a single bodice gets ripped'

Poldark star Heida Reed

'I don't think a single bodice gets ripped'
The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn