Interim Management Statement

RNS Number : 2669A

ITE Group PLC

31 July 2008

 



31 July 2008

ITE Group plc

('ITE' or the 'Group')

Interim Management Statement

ITE Group plc is today publishing its Interim Management Statement incorporating the Group's third quarter trading period from 31 March 2008 to 30 June 2008. Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 30 June 2008 to 31 July 2008, 

Trading Performance

The trading pattern of the first half of the financial year has continued throughout the third quarter with continuing good demand for the core exhibitions in Russia and the CIS. Revenues in the three month period to 30 June were £53.9m (2007: £49.3m) with 'like for like' revenues for the third quarter circa 10% ahead of the comparable figure for last year.

The third quarter is the Group's most important in revenue and profit terms as it includes three of ITE's ten largest events and accounts for approximately half of the year's revenues. Mosbuild, ITE's flagship Moscow construction event, is held in two venues and in 2008 sold a collective 87,200m2 (2007: 84,600m2). This was achieved despite the impact this year of a date clash with a competitive international event. Transrussia, the Moscow transport and logistics event, moved to a larger venue which facilitated growth of 30% in space sales to 8,200m2 (2007: 6,200m2). Expoelectronica, the Moscow electrical components event, was unchanged in size to last year's event at 9,000m2.

Also noteworthy was the triennial World Petroleum Congress held in Madrid in June/July. ITE's role was as sales agent, and the Group's sales effort was prominent in the success of this largest ever version of this Congress.

Corporate activity

As previously reported, the Group completed two acquisitions in the period. On 29 April, ITE announced the acquisition of Siberian Fairs LLC, the local organiser in Novosibirsk, Russia's third largest city. ITE acquired this business as the first step in its plans to broaden its regional exposure in Russia. On 5 June, ITE announced the acquisition of 75% of the issued share capital of Primexpo North West LLC, the owner of the Interstroyexpo construction exhibition in St Petersburg. Interstroyexpo is a 17,000m2 construction event which takes place in the favoured spring season and has been a long standing competitor of ITE's own autumn event, Baltic Build.  Owning both the principal St Petersburg construction events gives ITE a strong position in the growing construction sector.

Financial position

The Group had net cash on 25 July of £30.8m. Deferred or outstanding consideration due on the two acquisitions referred to above is circa £6.5m, of which £1.7m is due to be paid in the next financial year.

Board

The Company is in the advanced stages of appointing a new Finance Director. An announcement will be made in due course.

Outlook

The outlook for the Group in 2008 remains positive with good trading conditions in the Russian and CIS markets. The Board is confident that the business is performing in line with its expectations for the full year. As at 25 July the Group had £100.8m of sales booked for the current financial year, which represents approximately 95% of market expectations for the full financial year. At this point of the year, 'like for like' revenues remain more than 10% ahead of the comparable figure for the same time last year. 

Enquiries

Russell Taylor, CEO	020 7596 5000
ITE Group plc
Charles Palmer/Helen Thomas	020 7831 3113
Financial Dynamics

This Interim Management Statement is prepared for and addressed only to the Group's shareholders as a whole and to no other person. The Group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Interim Management Statement are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Group in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Group undertakes no obligation to update these forward-looking statements.

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