Interim Management Statement

RNS Number : 4385W

ITE Group PLC

29 July 2009

 



29 July 2009

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 1 April 2009 to 30 June 2009. Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 30 June 2009 to 28 July 2009. 

Trading Performance

Trading conditions in our core markets are unchanged from those reported in our interim statement of 15 May. The trends experienced in the first half of the financial year have continued through the third quarter with the proportion of 'pre-crisis' bookings diminishing as the Group moves further into the financial year. The impact of the economic crisis continues to be greatest for local sales, resulting in our more international events performing relatively better than our more local events.

Revenues in the three month period to 30 June were £58.9m in line with the Group's expectations (2008: £53.9m). This year's results include the biennial Moscow International Oil & Gas exhibition and the recently acquired Interstroyexpo building event in St. Petersburg. As expected, 'like for like' revenues for the third quarter were below the comparable figure for last year by circa 5%.

The third quarter is the Group's most important in revenue and profit terms as it includes four of ITE's ten largest events and accounts for over half of the year's revenues. Consistent with the comments made at the time of the interim results in May, all of our major events this year have reported volume decreases as a result of the economic crisis, although the majority have reported improved revenues as a result of prevailing sterling weakness and price increases. The performance of our principal events in the third quarter is summarised below:-

Event	2009 Square Meters	Prior edition Square Meters	Variance %
Mosbuild	74,900	87,100	-14%
Moscow International Oil & Gas Exhibition	17,300	22,400 *	-23%
Transrussia	7,300	8,200	-11%
Expoelectronica	5,300	9,200	-42%

*2007 edition

Overall, on a like for like basis, the Group's volume sales for the full financial year are circa 20% below last year's contracted sales at the same time, though like for like revenues are only marginally behind last year's comparable figure, reflecting the benefit of favourable exchange rates. 

Financial position

The Group has net cash of £14.9m as at 24 July. As in previous years this represents a low point in our annual cash cycle and net cash is expected to increase by the year-end reflecting receipts from next year's events. 

Outlook

As reported in the interim statement, while trading conditions remain difficult the trading environment in our principal markets appears to have stabilised but has yet to show clear signs of recovery. As at 24 July the Group had £108.4m of sales booked for the current financial year (this time last year: £100.8m), representing approximately 93% of market expectations for the full financial year. ITE's portfolio of leading events and strong balance sheet make the Board confident of the Group's long term prospects.

Enquiries

Russell Taylor, CEO                        020 7596 5000 

Neil Jones, CFO

ITE Group plc 

Charles Palmer/Matt Dixon            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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