Interim Management Statement

RNS Number : 8299Y

ITE Group PLC

30 January 2014

 



30 January 2014

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 October 2013 to the date of this announcement, incorporating the Group's first quarter trading period from 1 October 2013 to 31 December 2013. This coincides with the Group's AGM which is being held at 12 noon today. Other than the information contained in this Interim Management Statement there have been no material events or transactions in the period from 31 December 2013 to 30 January 2014.

Trading Update

The first quarter is the Group's smallest quarter by revenue with the only leading event to run during this period being the recently acquired Chinacoat exhibition. The Group's trading for the first three months of the financial year has been ahead of management expectations despite the relative strength of Sterling against our major trading currencies.

Revenue for the three month period to 31 December 2013 was £36.3m, (three months to 31 December 2012: £28.7m). This year's first quarter result reflects a stronger biennial pattern than the previous year and favourable timing on events in Central Asia. On a like-for-like basis (unadjusted for currency movements) revenues for the quarter are ahead of the comparative period by 10% (15% on a constant currency basis), with the strongest growth coming from Central Asia, followed by Russia.

Financial position

The Group's balance sheet remains strong with net debt of £3m (and facilities in place of £30m) as at 23 January 2014.

Corporate development

On the 15^th of October 2013, the Group purchased the Beauty Eurasia event for €8m in cash. Beauty Eurasia is an annual event that takes place in Istanbul which serves the beauty, personal care and cosmetics industries in Turkey and the surrounding region. Beauty Eurasia is the leading event of its kind in Turkey and complements the Groups leading beauty events in Ukraine and SE Asia. To date the sales for the event are performing as expected.

On 18 November 2013, the Group purchased a 50% stake in the ChinaCoat / SF China exhibition for £33m in cash, £30m of which was paid on completion with the balance due for payment in June 2014. The exhibition serves the paints, coatings and surface finishing industries in China and SE Asia. The 2013 edition took place in Shanghai on the 20 November selling 34,500m2 net and was attended by over 36,000 professional visitors, in line with our expectations at the time of the acquisition.

Outlook

Trading conditions in our core markets remain positive and the Group has contracted £121m of revenues for FY 2014. Despite the continued appreciation of Sterling against our major trading currencies contracted revenues are ahead of the prior year on a like-for-like basis (unadjusted for currency movements) by 2% (11% on a constant currency basis). Current sales represent circa 62% of current market expectations which is consistent with our long-term average of bookings at this stage of the Group's financial year.

The Board continues to monitor the political uncertainty in Ukraine which could affect international sales into the country, however the region is only a small part of the Group and any effect will be immaterial to the Group's results.

ITE will announce Interim Results for the six month ended 31 March 2014 on Monday, 19 May 2014.

Ends

Enquiries:

 
Russell Taylor, Chief Executive, ITE Group plc                                   Tel: [phone]

Neil Jones, Group Finance Director, ITE Group plc                             Tel: [phone]

Charles Palmer/Emma Appleton, FTI Consulting                                Tel: [phone]

James Serjeant, Numis Securities Ltd                                                 Tel: [phone]

 

END

 

 

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