Interim Management Statement

RNS Number : 3676J

ITE Group PLC

16 July 2013

 



16 July 2013

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 2013 to 15 July 2013, incorporating the Group's third quarter trading period from 1 April 2013 to 30 June 2013.

Trading Performance

Good trading conditions continue in our core markets and the Group is trading in-line with management expectations. Revenues in the three month period to 30 June 2013 were £95m (2012: £76m). This year's result includes a contribution from the biennial Moscow International Oil & Gas exhibition along with a first time contribution from Metaltech in Kuala Lumpur, Mayalsia, which the Group acquired in January 2013. On a like-for-like basis revenues for the third quarter were 8% higher than the previous year.

The principal trading highlights in the third quarter were:

·    Mosbuild, the Group's principal Moscow construction event continued to prove its resilience in the face of continuing competition and grew volumes by 4% to 68,500 sqm.

·    Moscow International Oil & Gas exhibition, performed strongly with volumes up (since the 2011 event) by over 5% to 24,000 sqm (2011: 22,800 sqm).

·    Turkeybuild is the leading construction event in Turkey. The event, which is space constrained, delivered a small increase in volumes selling 36,200sqm (2012: 36,100sqm). Plans are now in place to add capacity at the venue which will provide an opportunity for the event to grow strongly from 2015 onwards. 

Business development

The Group continues to execute its strategy of expanding its operations to new markets with potential for further growth. On 11 April 2013, ITE acquired 50% of ECMI based in Kuala Lumpur, Malaysia for an initial consideration of MYR 8.1m (£1.7m) and a deferred consideration of approximately MYR 4.1m (£0.9m) due in April 2014. In addition the Group holds put and call options to acquire the additional equity in 2017 and 2019. ECMI runs a number of small annual exhibitions in the Beauty and Lab technology sector in Malaysia, Vietnam and Indonesia.

Financial position

The Group had net cash of £17m as at 12 July 2013 (2012: net debt of £1.7m), after spending circa £26m on acquisitions and deferred consideration during this financial year.

Outlook

Year to date, the Group has delivered good organic growth supplemented by the continued investment in new businesses which extend the Group's reach into new emerging markets. As at 12 July 2013, the Group had £184m of sales booked for the current financial year (this time last year: £164m), representing approximately 98% of the consensus revenue expectations for this financial year.

The Group continues to experience good trading conditions in its principal markets and the Board remains confident in the full year outcome.

Enquiries

Russell Taylor, CEO                                                                020 7596 5000

Neil Jones, CFO

ITE Group plc

Charles Palmer/Emma Appleton                                             020 7831 3113

FTI Consulting

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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