Pre-Close Trading Update

RNS Number : 4235D

ITE Group PLC

28 March 2014

 



28 March 2014

ITE Group plc

("ITE" or the "Group")

Interim results pre-close statement

ITE Group plc is today publishing a pre-close statement ahead of its interim results for the six months ended 31 March 2014 which will be announced on Monday 19 May 2014.

Trading

Revenue for the six month period to 31 March 2014 is estimated to be circa £72m, (six months to 31 March 2013: £69m). The revenue for this period reflects a stronger biennial pattern and good trading, off-set by negative currency movements. Like for like revenues over the first six months are 10% ahead of the prior year on a constant currency basis and 2% behind on an actual basis. These factors together with a first-time profit contribution from the recently acquired Chinacoat event which took place in November last year will help the Group produce record profits for the period.

Ukraine

The Group's exhibitions in Ukraine all take place in Kiev and to date the office has been able to run its exhibition calendar without putting the safety of staff or customers at risk. We continue to monitor the situation closely and are currently expecting to run the remaining events scheduled for this financial year. Sales for the Ukrainian business have been affected by the recent crisis, and we estimate that there will be a negative effect on the Group's profits of circa £2m this financial year, the majority of which will be reported in the second half of the year. During the full year ended 30 September 2013, Ukraine contributed 6% of Group revenue and 7% of Group profits.

Currency movements

As previously noted, the Group is exposed to movements in foreign currency exchange rates against Sterling for most of its overseas operations. The larger exposures are to the Euro, Ruble, Turkish Lira and the Kazakh Tenge which with the exception of the Euro, have all weakened significantly against Sterling during the period. If current exchange rates prevail for the remainder of the financial year, the Group estimates that the effect of translation differences on full year like for like revenues will be in the region of 13%, though the effect on profits is expected to be partly mitigated by natural currency hedging and partly by underlying growth in our revenue base.

Financial position

The Group's balance sheet remains strong with net debt of £4m at 26 March 2014, and facilities of £30m in place to 30 June 2015.

Outlook

As at 26 March 2014, the Group has contracted revenues of £146m for the full year which on a like-for-like basis is 4% less than this time last year. On a constant currency basis like for like revenues would be 8% ahead of revenues for this time last year. The Group continues to monitor the political uncertainty surrounding Ukraine and Russia, and the potential effect on sales in those countries. An update will be provided in the Interim results announcement.

Ends

Enquiries:

Russell Taylor, Chief Executive, ITE Group plc	Tel: [phone]
Neil Jones, Group Finance Director, ITE Group plc	Tel: [phone]
Charles Palmer/Emma Appleton, FTI Consulting	Tel: [phone]
James Serjeant, Numis Securities Ltd	Tel: [phone]

 

END

 

 

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