ITE Group PLC
21 November 2001
21 November 2001
ITE Group Plc ('ITE' or the 'Company')
Following the appointment of Stephen Warshaw as Chief Executive of ITE on 22
October 2001, the Board has reviewed its financial performance for the trading
period just completed (the year to 30 September 2001) and expectations for the
current financial year to 30 September 2002.
Based on this review, the Board is pleased to confirm that ITE's operating
results for the year ended 30 September 2001 will be in line with market
expectations. This principally reflects robust trading in ITE's original core
markets of Russia and the CIS.
As highlighted at the time of the Company's interim results, published in May
2001, economic conditions in Turkey and the downturn in the technology sector
have adversely affected the profitability of the Group in the current
financial year. It is expected that trading will continue to be difficult in
these areas and this has led the Board to conclude that the goodwill
impairment announced at the time of the interims will need to be extended. The
Board expects that further goodwill write-downs of in excess of £20 million
will be recorded in ITE's audited results for the year ended 30 September
The Directors are pleased to announce that in the first six weeks of the
current financial year, the Company's operations in its core territories have
again performed well and attendance levels at exhibitions have surpassed their
expectations. In addition, the Directors are pleased to report that there have
been higher levels of re-bookings than anticipated in light of recent weakness
in certain key global economies and following events on 11 September 2001.
These events have had a limited adverse effect on the business, although it is
the Directors' belief that the three Tourism and Travel exhibitions in Russia,
Ukraine and the Czech Republic are susceptible to cancellations. However, more
importantly, contributions from Turkey, Egypt and Asia are unlikely to meet
management's original expectations for the current year. The Board now
believes that profit for the current year will be in the region of twenty per
cent. below that achieved in the year to 30 September 2001. It is important to
note this position partly reflects the biennial nature of ITE's business.
ITE's cash position remains strong. Although the Group may take advantage of
selective acquisition opportunities in its core markets, management's primary
focus in the immediate future will be on improving the quality of ITE's
current portfolio of businesses.
For further information, please contact:
ITE Group Plc 020 7596 5000
Buchanan Communications 020 7466 5000