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ITE Group PLC (ITE)

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Wednesday 30 September, 2009

ITE Group PLC

Trading Statement

RNS Number : 8727Z
ITE Group PLC
30 September 2009
 



   


30 September 2009 

ITE Group plc


Pre-close trading update for the year ending 30 September 2009


ITE Group plc, the international exhibitions group specialising in emerging and developing markets, has today issued the following update for the year ending 30 September 2009, prior to entering its close period and ahead of its preliminary results announcement on 1 December 2009.


Trading for the fourth quarter has been in line with management expectations and reflects the continued subdued levels of trading as reported in July. Revenues for the full year are expected to be circa £116m (2007: £110m), on actual volume sales circa 18% below last year. However, the benefits of cost reduction programmes carried out earlier this year and continued favourable exchange rates in the fourth quarter will result in profits for the full year being slightly ahead of current market expectations. 


Fourth Quarter Trading 


As reported in the Interim Management Statement released on 29 July 2009, trading conditions in our principal markets remain difficult. Events taking place in the fourth quarter had no 'pre-crisis' bookings and fully reflect the current trading environment.


The fourth quarter last year reflected the strong trading conditions prevalent at that time and the relative performance of events in the fourth quarter this year reflects the full extent of the change in the trading environment. The performance of the Group's principal events in the fourth quarter is set out below:



Event

2009 Square Meters

Prior edition Square Meters

MODA

14,300

16,100

Moscow International Motor Show

10,100

17,100

Worldfood Moscow

16,700

23,900 



MODA Autumn, the Group's UK fashion and Footwear event, performed well, given the trading conditions, achieving an increased attendance over the 2008 event. The Group held two large Moscow events in the fourth quarter; the Moscow International Motor Show which continues to face strong competition in a subdued sector of the Russian economy, and Worldfood Moscow, which is particularly exposed to trading pressures on local exhibitors.

 

Financial Position


The Group remains in a strong financial position, having passed the low point in its annual cash cycle, and had net cash of circa £22m on 29 September 2009.


Outlook


As previously indicated, the trading environment in our principal markets appears to have stabilised. Whilst modest economic growth is forecast for these territories in 2010, the Board expects volume sales to remain stable in the short term.  ITE's markets have significant long-term growth potential and the Group's strong balance sheet and portfolio of leading events position it well to benefit from a recovery. 


The Group continues to benefit from good sales visibility and as at 29 September 2009 the Group had booked circa £42m of 2010 revenues, representing approximately 41% of market expectations for the full financial year. 




ENDS



Enquiries:

 
Russell Taylor
Chief Executive, ITE Group plc            Tel: 0207 596 5000

Neil Jones, Group Finance director


Charlie Palmer/Emma AppletonFinancial Dynamics         Tel: 020 7831 3113



This information is provided by RNS
The company news service from the London Stock Exchange
 
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