Trading Statement

RNS Number : 5449T

ITE Group PLC

30 September 2010

 



30 September 2010

ITE Group plc

Pre-close trading update for the year ending 30 September 2010

ITE Group plc, the international exhibitions group specialising in emerging and developing markets, has today issued the following update for the year ending 30 September 2010, prior to entering its close period and ahead of its preliminary results announcement on 30 November 2010.

Results for the fourth quarter have been encouraging, and reflect improving trading conditions, most notably in Moscow. Revenues for the full year are now expected to be circa £112m (2009 £117m).

Fourth Quarter Trading

Events which took place in the fourth quarter benefitted from the better trading environment referred to in our July interim management statement.  This improved trading environment resulted in a return to growth for our principal Moscow events. As anticipated, the recovery in ITE's other CIS markets has been slower than in Moscow.

The performance of the principal events taking place in the fourth quarter is summarised below:

Event	2010 Square Meters	2009 Square Meters	Variance %
MODA	17,100	14,100	+21%
Worldfood Moscow	20,900	16,700	+25%
Moscow International Motor Show	12,700	10,100	+26%

The MODA fashion event performed well in a subdued UK retail fashion market but also benefitted from the successful launch of its Lingerie section this year which has added over 2,000sqm of new sales.

In Moscow, Worldfood Moscow demonstrated its recovery from the economic crisis regaining circa 50% of the space sales lost since the 2008 event. The Moscow International Motor Show, is now co-branded with Messe Frankfurt's Automechanika event and this new partnership, together with the improving economic environment, provided a platform for good growth.

Business development

On 23 July 2010, the Group purchased the remaining 30% of Airgate Holdings Limited (the holding company for the Group's Indian business) for a consideration of circa €1.3m.  Bringing the ownership of the Indian business 100% under ITE's control will facilitate its future development.

Financial position

The Group has net cash of £20.6m as at 24 September 2010.

Outlook

There are now clear signs of a recovery in Moscow and indications of improving market conditions in our secondary markets. The benefits of this recovery, if it is sustained, will be more fully reflected in next year's results.  The Group continues to benefit from good sales visibility and, as at 29 September 2010, the Group had booked circa £53m of 2011 revenues, representing circa 44% of current market expectations for the full year.

Looking forward, ITE's markets continue to have significant growth potential.  The Group's strong financial position will allow it to capitalise on this potential and the Board remain confident in the prospects of the Group.

Enquiries

Russell Taylor, CEO                                                       020 7596 5000

Neil Jones, CFO

ITE Group plc

Charles Palmer/James Macey White                               020 7831 3113

Financial Dynamics

This Pre-close 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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