Interim Management Statement

RNS Number : 7799H

ITE Group PLC

17 July 2012

 



17 July 2012

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 2012 to 16 July 2012, incorporating the Group's third quarter trading period from 1 April 2012 to 30 June 2012.

Trading Performance

Trading conditions in our core markets remain as reported in our interim results statement of 21 May 2012 and the Group continues to trade in-line with management expectations. Revenues in the three month period to 30 June 2012 were £76.1m (2011: £79.4m). This year's result does not include a contribution from the biennial Moscow International Oil & Gas exhibition but does include first time contributions from Turkeybuild, which the Group acquired in July 2011, and from the spring events of the recently acquired Automotive and Beauty portfolios in Ukraine.

On a like-for-like basis revenues for the third quarter were approximately 3% lower than the previous year. The most significant influence on this was the performance of the Group's Mosbuild event in its biennially weaker year. The remainder of ITE's portfolio, excluding Mosbuild, delivered like for like revenue growth of circa 6% for the quarter.

The principal trading highlights in the third quarter were:

·    Mosbuild, the Group's principal Moscow construction event faced a competitive launch this year. As expected it demonstrated its resilience to competition in delivering sales of 59,300 sqm (excluding the biennially impacted windows sector) a small reduction from the previous year's comparable event. 

Event	2012 sqm	2011 sqm
Mosbuild	59,300	62,800
Windows Sector (Biennial element)	6,700	14,800
Total Mosbuild event	66,000	77,600

·    Turkeybuild is the leading construction event in Turkey and takes place in May each year. This was the first edition under the Group's 60% ownership and the event, which is wall bound, delivered a 3% increase in selling 36,100sqm (2011: 35,00sqm). The result is in line with management expectations at the time of the acquisition.

·    In Ukraine the first editions of the recently acquired Automotive and Beauty exhibitions were held and performed in line with the Group's expectations.

Business development

On 3 April 2012, ITE acquired Beautex Co LLC based in Kiev, Ukraine for a consideration of €8.6m (£7.2m). €6m was paid in cash on completion with a further payment of up to €2.6m payable over the next two years. Beautex runs two exhibitions each year, Intercharm and Beautyexpo, both of which serve the professional beauty trade and cosmetic & aesthetic industry in Ukraine.

During the quarter the Group completed two acquisitions in India. On 10 May 2012, the Group acquired the trade and exhibition assets of two events, Roof India and Hand Tools & Fasteners Expo from Chennai based Unitech Exhibitions pvt Ltd for 115m Indian rupees (£1.3m). On 24 May 2012, the Group acquired the trade and exhibition assets of a portfolio of six exhibitions from Mumbai based Conventions and Fairs for 110m Indian Rupees (£1.3m). These two acquisitions give the Group an expanded regional base of operations as well as adding critical mass to the Group's Indian business.

On 13 July 2012, the Group expanded its reach in the UK fashion sector with the purchase of 100% of the London based premium menswear event Jacket Required.

Financial position

The Group had net debt of £1.7m as at 13 July 2012, after spending circa £17m on acquisitions and deferred consideration during this financial year.

Outlook

Year to date, the Group has delivered solid organic growth supplemented by the contribution of new business acquired last year. As at 13 July 2012, the Group had £163.6m of sales booked for the current financial year (this time last year: £146.8m), representing approximately 96% 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 Group's prospects for the year.

Enquiries

Russell Taylor, CEO	ITE Group plc	020 7596 5000
Neil Jones, CFO
Charles Palmer/Emma Appleton	FTI Consulting	020 7831 3113

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.

- end -

 

END

 

 

IMSUNUVRUWABAAR