Events and publishing group United Business Media Ltd (UBM.LN) surged over 9% in morning trade Friday after the company said it was on track to meet full year expectations and raised its dividend, even as sales and profits fell in the first half.

The company reported sales in the six months to Jun. 30 fell 2.4% to GBP435 million, even when including the effect of positive currency movements, while adjusted operating profit, which excludes amortization and exceptional items, fell 13.2% to GBP78.3 million.

Net profit after minority interests fell to GBP48.0 million from GBP60.5 million last year.

Goldman Sachs said in a research note Friday that although revenue was a little light, operating profit was ahead and it pointed to margin improvements at its events and PR Newswires businesses.

By 0846 GMT, UBM shares were up 9.3%, or 35p, to 406p, making it the highest riser in percentage terms in a broadly flat FTSE-250 mid-cap index.

UBM has shed some of its advertising-exposed print publications in the past few years and grown its news distribution service and a stable of key industry events for sectors such as chemicals and technology, helping to protect it from the worst of the media downturn.

Still, it cut 350 more jobs in the first half after closing 15 titles at its print publishing arm, which has been worst hit by the advertising downturn. And Chief executive David Levin told Dow Jones Newswires that more titles will close and jobs will be lost.

The rationalization of UBM's print portfolio has reduced the proportion of sales it generates from this part of the business to around 20%, and profit to just 4%. Sales at the unit fell 22% to GBP86.3 million, but adjusted operating profit fell 76% to GBP3.3 million.

Having jettisoned the unprofitable magazines, UBM has focused on growing its other businesses such as events, which now account for around 48% of its profit.

It is here that the company has proved most resilient, with a stable of industry-leading events suc as the Hong Kong Jewellery and Gem Fair, and the technology security conference BlackHat, where software researchers Thursday demonstrated vulnerabilities in Apple Inc's (AAPL) iPhone.

Revenue bookings for these major events were 5.9% ahead of the previous booking cycle, the company said, although it has struggled with smaller events and those serving industries hard-bit by the recession such as property and housing.

The company said it remains on track to meet full-year expectations due to the cost cutting and refocusing of the business, and increased its dividend by 7.1% to 6 pence a share.

UBM doesn't provide specific forecasts for its full year earnings but is on track to meet analysts' consensus for pretax profit of GBP151 million to GBP166 million and earnings per share between 49p and 55p, according to the company.

Investec said in a note to clients Friday that "confirmation of comfort with full year forecasts is a positive, as is the 7% increase in dividend."

UBM also has a strong balance sheet, in contrast with publishing peer Reed Elsevier PLC (REL.LN) which on Thursday was forced into a rights issue Thursday to pay down debt.

UBM's own GBP250 million war chest has has been used very infrequently over the past two years as the company struggled to find investments that matched its strict criteria on returns. However it expects to make more acquisitions in the coming year.

UBM has over 6,500 staff in 30 countries. Among its other properties, it owns global news distribution service PR Newswire and has holdings in broadcast news provider ITN.

Company Web site: www.unitedbusinessmedia.com

-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com