Interim Management Statement

RNS Number : 5828P

ITE Group PLC

20 July 2010

 



20 July 2010

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 2010 to 19 July 2010, incorporating the Group's third quarter trading period from 1 April 2010 to 30 June 2010.

Trading Performance

Trading conditions in our core markets are unchanged from those reported in our interim results statement of 17 May 2010. The trends noted in the first half of the financial year have continued through the third quarter with our largest market, Moscow, continuing to show positive trading patterns.

Revenues in the three month period to 30 June 2010 were £55.6m in line with the Group's expectations (2009: £58.9m). This year's results do not include a contribution from the biennial Moscow International Oil & Gas exhibition but do include the results of the recently acquired Aqua-therm Kiev exhibition. As anticipated, like for like revenues for the third quarter were approximately 7% below the comparable figure for last year.

The Group's third quarter is the most important in revenue and profit terms as it includes five of ITE's ten largest events and accounts for over half of the year's revenues. Consistent with the comments made at the time of the interim results in May, the 'late cycle' nature of the exhibition industry has resulted in most of our major events in this quarter reporting volume decreases as a result of the recessionary environment affecting trading conditions for most of last year. The performance of our principal events in the third quarter is summarised below:-

Event	2010 Square Meters	Prior edition Square Meters	Variance %
Mosbuild	62,700	74,900	-16%
Transrussia	7,500	7,300	+3%
Expoelectronica	5,100	5,300	-4%
Interstroyexpo	6,400	10,100	-37%
Aqua-therm Kiev	14,200	14,800*	-4%

*Not under ITE ownership

Business development

As noted at the time of the interim results, the Group has made two acquisitions during the period. On 9 April 2010, ITE's Moscow office acquired Global Expo, a small Russian exhibition business with two events, one serving the meat and dairy industry and the other serving the infrastructure suppliers to the construction industry. On 29 April 2010, the Group acquired Fin-mark which owns a portfolio of exhibitions serving the Heating, Ventilation and Air Conditioning industries in Ukraine, Kazakhstan and Azerbaijan. The largest of these exhibitions took place in Kiev in May and reported sales of 14,200m2. The Kazakhstan and Azerbaijan exhibitions will take place alongside the Group's autumn construction events taking place in these territories. Both acquisitions are trading in line with management expectations and integration is progressing well.

Financial position

The Group has net cash of £12.6m as at 16 July 2010. 

Outlook

As at 16 July 2010, the Group had £106.9m of sales booked for the current financial year (this time last year: £108.4m), representing approximately 98% of the market's revenue expectations for the full financial year. As reported in our interim results statement, we have noted indications of an improving trading environment in some of our principal markets but the benefits of these better trading conditions will mostly be seen in next year's events. Overall, the Group is trading in line with management's expectations for the year, and the Board remain confident in the Group's long term prospects.

Enquiries

Russell Taylor, CEO                                                    020 7596 5000

Neil Jones, CFO

ITE Group plc

Charles Palmer/James Macy-White                           020 7831 3113

Financial Dynamics

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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