Trading Update

RNS Number : 8525C

ITE Group PLC

25 January 2018

 

25 January 2018

ITE Group plc

("ITE" or the "Group")

Trading Update

ITE Group plc is today publishing a trading update for the period from 1 October 2017, incorporating the Group's first quarter trading period to 31 December 2017. This coincides with the Group's Annual General Meeting which is being held at 12 noon today and the appointment of the new Chairman, Richard Last, announced earlier.

First quarter trading update

The Group's performance in the quarter was in line with management expectations. The early benefits of the Transformation & Growth ("TAG") programme continue to be felt with forward bookings up double digit on a like-for-like basis into 2018.

Revenue for the three month period to 31 December 2017 was £40.7m (three months to 31 December 2016: £35.0m). The increase is largely due to the Breakbulk North America event not taking place in the comparative period due to event timing, the first-time impact of two events from our prior year acquisition of Gehua in China, and this being the stronger biennial quarter. On a like-for-like basis revenues for the quarter are 5% higher than the comparative period. Two top 10 events ran in the quarter, collectively delivering double digit like-for-like revenue growth.

Financial position

The Group continues to benefit from the earlier cash collections following our onsite rebooking initiative. After continued TAG investment in the period, but strong operational cash conversion, net debt is circa £52m.

TAG programme update

The three year TAG Programme, announced in May 2017, is progressing according to plan. The first iteration of the 'Events Best Practice blueprint' has been launched and significant progress has been made on the design of the integrated sales and marketing system. During the quarter we continued the proactive management of our event portfolio, discontinuing 21 less profitable events.

Outlook

As at 19 January 2018, the Group had booked circa £113m of revenue for the 2018 financial year (20 January 2017: £99m) representing circa 70% of market expectations for the full year. On a like-for-like basis, these revenues are 16% ahead of this time last year and on a volume basis are 7% ahead reflecting the impact of earlier bookings and ITE's focus on core events following the launch of the early TAG initiatives.

The Board is pleased with the performance, which is in line with expectations.

Notes to Editors

Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period.  This excludes:

-              Biennial events;

-              Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);

-              Launches;

-              Cancelled or disposed of events that did not take place under our ownership in the current year;

-              Acquired events in the current period; and

-              Acquired events in the comparative period that didn't take place under our ownership in the comparative period (i.e. they took place pre-acquisition).

For further information please contact:

ITE Group plc Melissa McVeigh, Director of Communications Anneka Kingan, Group Company Secretary	[phone] [phone]
FTI Consulting Charles Palmer/Emma Hall	[phone]

 About ITE Group plc

ITE Group plc was founded in 1991 and is now one of the world's leading organisers of international exhibitions and conferences.

ITE Group's strategic vision is to create the world's leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. The Group recently launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.

 

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