Interim Management Statement

RNS Number : 6021K

ITE Group PLC

19 July 2011

 



19 July 2011

ITE Group plc

("ITE" or the "Group")

Interim Management Statement

ITE Group plc is today publishing its Interim Management Statement for the period from 1 April 2011 to 18 July 2011, incorporating the Group's third quarter trading period from 1 April 2011 to 30 June 2011.

Trading Performance

Trading conditions in our core markets remain as reported in our interim results statement of 16 May 2011. The trends noted in the first half of the financial year have continued through the third quarter with our largest market, Moscow, continuing to trade well and the Group's other markets showing increasingly positive trading patterns.

The Group's third quarter is the most important in revenue and profit terms as it includes six of ITE's ten largest events and accounts for over half of the year's revenues. Revenues in the three month period to 30 June 2011 were £79.4m (2010: £55.6m). This year's result includes the biennial Moscow International Oil & Gas exhibition along with a first time contribution from the spring events of the recently acquired MVK and Krasnodar exhibition portfolios, which have performed in line with the Group's expectations. On a like-for-like basis revenues for the third quarter were approximately 20% ahead of the comparable figure for last year.

The performance of our principal events in the third quarter is summarised below:-

Event	2011 Square Meters	Prior edition Square Meters	Change %
MosBuild	77,700	62,700	+24%
TransRussia	8,700	7,500	+16%
Moscow International Protection & Security	8,600	6,600	+30%
Interstroyexpo	8,200	6,400	+28%
Aqua-therm Kiev	15,300	14,200	+8%
Moscow International Oil & Gas	22,900	17,300*	+32%

*2009 event

Business development

On 13 July, ITE announced the acquisition of 60% of YEM FUARCILIK A.Ş "YEMF" (a Turkish company) for a consideration of TL32.64m (£13.1m) payable in cash on completion with a further payment of up to TL8m (£3.2m) payable nine months after completion, based on YEMF achieving performance targets in 2011.

YEMF owns three Turkish exhibitions which serve the building materials and construction industries. The principal event, Turkeybuild, is held in Istanbul in April/May each year and is the leading construction event of its kind in Turkey. The 2011 version was the 34th edition of this successful event, sold more than 35,000m2 net and was attended by over 110,000 professional visitors. The other two exhibitions are held in Ankara and Izmir in September and October respectively

This acquisition provides ITE with the opportunity to further develop its Turkish business in one of its core sectors.

Financial position

The Group had a net debt of £4.2m as at 15 July 2011, after spending over £48m on acquisitions during this financial year.

Outlook

As at 15 July 2011, the Group had £146.8m of sales booked for the current financial year (this time last year: £106.9m), representing approximately 98% of the market's revenue expectations for this financial year. Bookings for the 2012 calendar of events, including MosBuild 2012, are progressing in line with management's expectations.

The Board remain confident in the Group's long term prospects.

Enquiries

Russell Taylor, CEO                                                       020 7596 5000

Neil Jones, CFO

ITE Group plc

Charles Palmer                                                              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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