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ITE Group PLC (ITE)

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Monday 11 December, 2000

ITE Group PLC

Final Results

ITE Group PLC
11 December 2000


For Immediate Release                        11 December 2000


ITE GROUP PLC


PRELIMINARY RESULTS ANNOUNCEMENT


ITE Group plc, the leading exhibition organiser in emerging markets, is
pleased to announce its preliminary results for the year ended 30 September
2000.


Key points:



*       Headline profit* of £13.4 million (1999: £10.3 million) up 30% through
        diversification into new markets and cost management programs and       
        despite difficult trading conditions in the Russian and Turkish regions


*       Headline diluted earnings per share 4.8p (1999: 4.3p) up 12%


*       Final dividend of 0.95p per share making a total of 1.45p for the
        year, up 5%


*       Reported turnover of £38.8 million (1999: £35.3 million) up 10%.
        Turnover including ITE's share of Associates revenue and Other Income   
        amounts to £44 million, up 25% (1999: nil)



*       Acquisitions and joint ventures have been undertaken in the UK,
        Turkey, Czech Republic, Slovakia, Egypt and Indonesia



*       Strong current trading



*       ITE organised 140 exhibitions utilising approximately 270,000 square
        metres of net space sold



*       £40m recent fundraising including £30m from media and communications
        private equity investor Veronis Suhler



*       New strategic alliance with Veronis Suhler to support ITE's expansion
        into new complementary media and business-to-business markets



For further information, please contact :


ITE Group plc                                                     020 7596 5000
Lawrie Lewis, Chairman / Ian Tomkins, Finance Director

Buchanan Communications                                           020 7466 5000
Richard Oldworth / Isabel Petre



* Headline profit is defined as profit before amortisation of goodwill, tax,
  compensation paid to directors for loss of office and amounts written off
  investments




                                  ITE GROUP PLC



          Preliminary Statement for the year ended 30 September 2000



Comments by Chairman : Lawrie Lewis



It is a great pleasure for me to present the 2000 preliminary results. Our
stated plan for 2000 was to continue to expand by acquisitions and joint
ventures in both our existing markets and in new ones and I am pleased to
report that we have not only managed to achieve this but also to show
continued strong growth in earnings. This achievement has been made despite
very difficult trading conditions in Russia following the 1999 economic crisis
and in Turkey following the 1999 earthquake. Based on ITE's growth strategy,
we are looking to organise over 325 exhibitions in 25 different countries for
the coming year.



Results



The consolidated profit and loss account for the year ended 30 September 2000
is set out in the attached.  Turnover directly attributable to the group was £
38.8 million (1999 £35.3 million), excluding ITE's share of turnover
attributable to associates and other income of £5.2 million (1999: nil).
Profit before amortisation of goodwill, tax and compensation paid to directors
for loss of office was £13.4 million (1999 £10.3 million).



Acquisitions



Over the last year, the group has continued its acquisition programme and to
date we have concluded the following acquisitions and joint ventures:




ACG & ITF (50%)          Exhibition organiser in Cairo, Egypt
Incheba Prague (50%)     Exhibition organiser in Prague, Czech Republic
ITF (50%)                Exhibition organiser in Istanbul, Turkey
Coneco (50%)             Building exhibition in Bratislava, Slovakia
Comtek                   9 trade exhibitions in Moscow, Russia
PSA (50%)                Joint venture in Singapore
E-Business               Trade exhibition in Birmingham, UK
EUF                      Exhibition organiser in Istanbul, Turkey
X-RM (51%)               Software company in Winchester, UK.
Copras                   Trade conference in Moscow, Russia
UITT                     Travel show in Kiev, Ukraine
Intermedia (51%)         Exhibition organiser based in London, UK
Rantai (51%)             Exhibition organiser in Jakarta, Indonesia
Pegasus (50%)            Joint venture in Karachi, Pakistan
DXCEC (50%)              Joint venture in Dalian, China




We shall continue with our strategy of growing by acquisition as well as
expanding the activities of our existing businesses. We have formed ITE Asia,
based in Singapore, and we are looking at acquisition and further joint
ventures in Singapore, Indonesia, Hong Kong and China.



Exhibitions during the year



Our major shows throughout the year included the Building and Construction
events Coneco in Bratislava (26,000m(2)) and Mosbuild in Moscow (23,400m(2));
the Machine Tools event Iamk/Tatef in Istanbul (21,000m(2)); the Travel and
Tourism events MITT in Moscow (14,500m(2)) and Holiday World in Prague
(10,200m(2)); the Motorshow event MIMS in Moscow (10,500m(2)) and the
Information Technology event Comtek in Moscow (10,200m(2)).



Internet Activities



We previously reported that we were launching a number of B2B portal sites but
to reflect a downgrading of our views on the rate of Internet uptake we have
slowed down this project. We acquired X-RM, a software programming company,
and they are currently working on a number of projects allied to our physical
exhibitions. This will include interactive websites for our exhibitions, 3-D
virtual reality exhibitions and a B2B portals site leveraging off our local
and international databases.



Management



Our management structure has had to change during the year to cope with the
changing nature of our business and I had to take on the role of Chief
Executive as well as Chairman. We are well advanced in our selection process
to find a new Chief Executive with media experience and this will give greater
stability to the group. We have added a number of partners to our board and I
am delighted that Ceyda Erem, responsible for Turkey; Alexander Rozin,
responsible for the Czech Republic and Slovakia; and Mohsen Ghozzi,
responsible for Egypt, have joined.



Recent Funding



In November 2000 VS&A Communications Partners, a private equity affiliate of
Veronis Suhler, subscribed approximately £30 million in cash at 70p per share
to give them a current shareholding of 16.9%. At the same time, existing
shareholders injected £9.68 million at the same price. As a result of
receiving the recent funding, ITE has repaid all debt and currently has net
cash on deposit of £20 million.



Veronis Suhler is a US based investment fund specialising in investing in
media and communications companies. The funds under management are currently
US$1.4 billion and Veronis Suhler views ITE as an attractive international
platform for organic and acquisition-led growth. Veronis Suhler has both
financial and commercial expertise to assist ITE in moving to become a broad
based business to business media group. As part of this investment Jeffrey
Stevenson and Nigel Stapleton have joined the board as non-executive
directors. Their considerable experience, both financially and commercially,
will prove a great asset to ITE.



Dividends



An interim net dividend of 0.5p (1999: 0.48p) per share was paid on 10th July
2000.  The directors recommend a final net dividend of 0.95p (1999: 0.9p) per
share, to be paid (if approved) on 2 March 2001 to shareholders on the
register of members at the close of business on 22 December 2000.  Under the
company scrip dividend scheme, shareholders can elect to take either cash or
new shares in ITE by way of dividend.



Current Trading



Sales as at 30 November 2000 already booked for 2000/1 are £27.4 million (1999
/00: £19.7 million).  To date over £14.8 million (1999/00: £11.9 million) of
these sales have been collected.



Outlook



In this last year ITE has continued to achieve its goal of diversifying
outside of its original core market in Russia and the CIS and to become the
leading exhibition organiser in emerging markets. We shall continue with this
strategy but we will not necessarily be confined to emerging markets and a
number of our recent acquisitions have been in Western Europe.



The 2001 year is looking to be positive for ITE with like for like sales well
ahead of last year. With greater stability in Russia and improving prospects
in Turkey the company is well positioned for good growth from the existing and
acquired businesses. Furthermore, the impact of biennial events should also
enhance revenues for the 2001 year. The Group continues to look at a number of
further acquisitions but it is too early in the process to predict the timing
or impact of such on earnings and cash balances.



With the involvement of Veronis Suhler, our sights are now on moving ITE into
becoming a more broadly based business-to-business media group. We believe our
track record of profitability and a cash rich balance sheet puts us in a
strong position to achieve this in the coming year.





Lawrie Lewis

Chairman




CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 30 September 2000


                                               Notes    2000         1999
                                                        £000         £000
Turnover
Acquisitions                                           5,281        5,098
Existing operations                                    33,565      30,214
                                                       __________  __________
Continuing operations                                  38,846      35,312
Cost of sales                                         (20,933)    (19,174)
                                                       __________  __________
Gross profit                                           17,913      16,138
Other operating expenses                               (9,229)     (7,234)
Other operating income                                    790         -
                                                       __________  __________
Operating profit
Acquisitions                                            2,449       1,225
Existing operations                                     7,025       7,679
                                                       __________  __________
Continuing operations                                   9,474       8,904
Share of associate's operating profit/(loss)              771         (48)
Exceptional amounts
written off investments                                     -      (2,340)
                                                       __________  __________
Profit on ordinary activities before interest          10,245      6,516
Interest receivable                                       383        946
Interest payable and similar charges                     (312)         -
                                                       __________  ___________
Profit on ordinary activities before taxation          10,316      7,462
Tax on profit on ordinary activities                   (4,101)    (2,976)
                                                       __________  ___________
Profit on ordinary activities after taxation           6,215       4,486
Minority interests                                     (243)       (115)
                                                       __________  ___________
Profit for the financial year                          5,972       4,371
Dividends paid and proposed                           (3,316)     (2,256)
                                                       __________  ___________
Retained profit for the year                           2,656       2,115
                                                       __________  __________
Earnings per share
Headline diluted                                3      4.8p        4.3p
Basic                                           4      3.3p        2.7p
Diluted                                         5      3.2p        2.6p
                                                       __________  __________





Consolidated Balance Sheet
30 September 2000


                                                       2000        1999
                                                       £000        £000
Fixed assets
Goodwill                                               47,331      7,196
Tangible assets                                         1,812      1,973
Associates                                             21,337      1,904
Other investments                                       6,178      1,041
                                                       ___________ ___________
                                                       76,658     12,114
Current assets
 Debtors                                               19,605     12,658
Cash at bank and in hand                                2,722     19,493
                                                       ___________ ___________
                                                       22,327     32,151

Creditors: Amounts falling due within one year        (52,666)   (27,333)
                                                       ___________ ___________
Net current (liabilities)/ assets                     (30,339)     4,818
                                                       ___________ ___________
Total assets less current liabilities                  46,319     16,932
Creditors: Amounts falling due after more than one       (180)    (1,750)
year
Provisions for liabilities and charges                (12,935)         -
                                                       ___________ ___________
Net assets                                             33,204     15,182
                                                       ___________ ___________

Capital and reserves
Called-up share capital                                 1,937      1,682
Share premium account                                  26,221      9,978
Option reserve                                          1,853      2,983
Profit and loss account                                 2,717         48
                                                       ___________ ___________
Equity shareholders' funds                             32,728     14,691
                                                       ___________ ___________
Minority interests                                        476        491
                                                       ___________ ___________
Total capital employed                                 33,204     15,182
                                                       ___________ ___________






Consolidated Cash Flow Statement
For the year ended 30 September 2000




                                                                 2000      1999
                                                                 £000      £000
Net cash inflow from operating activities                       8,426     5,385
Returns on investments and servicing of finance                   279       946
Taxation                                                       (2,531)   (1,880)
Capital expenditure and financial investment                   (3,260)    2,753
Acquisitions and disposals                                    (33,049)   (4,723)
Equity dividends paid                                          (2,428)   (1,461)
                                                            ___________________
Cash (outflow)/inflow before management of liquid resources   (32,563)    1,020
and financing
Management of liquid resources                                 13,278     4,194
Financing                                                      15,792      (567)
                                                            ___________________
(Decrease)/increase in cash in the year                        (3,493)    4,647
                                                            ___________________



Notes



1.     The accounts have been prepared on the historical cost basis and do not
       constitute statutory accounts within the meaning of section 240 of the
       Companies Act 1985.



2.     The figures for the period to 30 September 1999 have been extracted
       from the statutory accounts which have been reported on the Group's      
       auditors and have been delivered to the Registrar of Companies. The      
       auditors report was unqualified and did not contain any statement under  
       Section 237(2) or (3) of the Companies Act 1985. The auditors have not   
       yet reported on the accounts for the year ended 30 September 2000 nor    
       have any such accounts been delivered to the Registrar of Companies.



3.     The headline diluted earnings per share is based on earnings as set out
       below divided by 186,498,000 ordinary shares, allowing for the effect of 
       all dilutive potential shares.


                                                             2000         1999
                                                             £000         £000
 Profit for the financial year                              5,972        4,371
 Amortisation of goodwill                                   2,315          244
 Compensation paid to directors for loss of office            736          280
 Exceptional amounts written off investments                -            2,340
                                                         __________   __________
 Headline Earnings                                          9,023        7,235
                                                         __________   __________





4.     Earnings per share on the net basis is based on the profit for the
       financial year divided by the weighted average of the number of ordinary
       shares in issue, being 181,032,000 shares.



5.     The calculation of fully diluted earnings per share is based on
       186,498,000 ordinary shares, allowing for the exercise of all dilutive
       potential shares.