Interim Management Statement

RNS Number : 8624D

ITE Group PLC

12 July 2016

 

12 July 2016

ITE Group plc

("ITE" or the "Group")

Interim Management Statement

ITE Group plc, the international exhibitions group, is today publishing its Interim Management Statement for the period from 1 April 2016 to 11 July 2016, incorporating the Group's third quarter trading period from 1 April 2016 to 30 June 2016.

Trading Performance

The Group's trading for the third quarter of the financial year was in line with management expectations. Revenues in the three month period to 30 June 2016 were £46m (2015: £58m) which reflects the weaker biennial pattern and the weakness of our trading currencies, especially the Ruble, compared with the same period last year. On a like-for-like basis revenues were, as expected, 13% lower than the comparative period.

Financial position

The Group had net debt of £64m as at 30 June 2016, after spending circa £15m on previously announced acquisitions and deferred consideration during this financial year. The Group has a secured debt facility of £93m and is trading within its facilities.

Corporate development

As set out in the Group's interim results, ITE's focus is currently on organic initiatives and integrating its recent acquisitions to drive growth. As already announced the Group had previously agreed terms to acquire a small Shanghai-based business running a portfolio of complementary exhibitions. Final terms have now been signed and the transaction is awaiting Government approval.

Outlook

The recent referendum result in the UK on membership of the European Union is not expected to have a significant impact on ITE because the Group's operations are not heavily influenced by UK-EU trade.  If the recent weakness in Sterling continues, we would expect this to have a positive influence on future results.

The Board remains confident in the outlook for the current financial year, with 96% of consensus revenues now contracted. As at 8 July 2016, the Group had contracted revenues of circa £127m for the full year which, on a like-for-like basis, is 8% less than this time last year. As indicated in our interim results, the trading environment in Russia continues to be challenging, but is expected to improve in 2017.

Where used, like-for-like measures are stated on a constant currency basis adjusted to exclude acquisitions impacting results for the first time, event timing differences and biennial events.

Enquiries

Russell Taylor, CEO                                                                020 7596 5000

Des McEwan, Interim Group Finance Director

ITE Group plc

Charles Palmer/Emma Appleton/Antonia Gray                      020 3727 1000

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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