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
|
|
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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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