ITE Group PLC
30 April 2001
For Immediate Release 30 April 2001
ITE GROUP PLC
ITE will be publishing its Interim report for the six months ended 31st March
2001 on 30th May 2001.
Prior to this announcement, the board has made a considered assessment of the
impact of the Turkish financial crisis on the overall results of the Group. As
a result of acquisition activity over the past two years Turkey has become the
second most important location for ITE after Russia & CIS.
The Turkish economy has come under increasing pressure following the
significant devaluation of the Turkish lire in February. This has been mainly
reflected in a crisis in customer confidence leading to the postponement of
exhibitions plus a reduction in forward contracted bookings and the yields
achieved on business gained. Further, the downturn in the technology sector
has also resulted in slower sales than previously anticipated.
The board takes the view - due principally to the fact that there is unlikely
to be short term recovery in the Turkish situation - that headline profit
before amortisation of goodwill, tax, compensation paid to directors and
exceptional items is unlikely to exceed last year's figure of £13.4m.
Further, a review as to whether an exceptional charge against profit for any
possible impairment of goodwill or write down of carrying value of investments
will be undertaken.
Nevertheless, ITE reports continuing strong trading conditions in its key
Russian events, with construction sectors being particularly successful.
The company's cash position remains strong - net cash of £20m at end March
2001. The board wishes to refocus management on the fundamental drivers of the
business - sales, quality product and customer service. Current economic
conditions position the company well for further growth by acquisition, and to
pursue its strategy to move ITE into becoming a more broadly based media
ITE Group plc 020 7596 5000
Buchanan Communications 020 7466 5000