RNS Number : 1441A
ITE Group PLC
27 January 2011
27 January 2011
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 2010 to the date of this announcement, incorporating the Group's first quarter trading period from 1 October 2010 to 31 December 2010. This coincides with the Group's AGM which is being held at 12pm 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 2010 to 27 January 2011.
The Group's trading has been in line with management expectations for the first three months of the financial year. Revenue for the three month period to 31 December 2010 was £20.5m, (three months to 31 December 2009: £15.1m). This period includes revenues from recently acquired events and on a like-for-like basis revenues for the quarter are ahead of the comparative period by 22%. Overall, events taking place during the first quarter have traded significantly ahead of last year's comparable events which were mostly operating in a recessionary environment.
The Kazakhstan Oil and Gas Exhibition & Conference was the only one of the Group's ten most profitable events to take place during the three month trading period to 31 December 2010. Exhibition space sales were similar to last year's event although conference revenues were circa 15% lower. Other significant exhibitions to have taken place during the period included Pharmtech, Ingredients Russia, Bakubuild, Public Health and the recently acquired biennial Turkish international machinery technology event TATEF.
The Group's balance sheet remains strong with net cash at 22 January 2011 of approximately £7m. This is after making full payment for MVK acquired in December 2010.
Corporate development in the period
As announced on 17 December 2010, the Group purchased 100% of MVK for a total consideration for €33 million, paid in cash on completion. MVK is a significant Moscow exhibition business which owns twenty exhibitions with annual volume sales of more than 55,000m2. MVK's largest annual exhibitions serve the furniture, packaging, pumps and measurement industries. This high quality portfolio of events with strong market positions in sectors new to ITE is complementary to the Group's existing exhibition interests and will both broaden and strengthen the Group's core activities in the growth markets of Russia and the CIS.
Trading conditions in our core markets continue to recover, and future bookings for the remainder of the year are progressing as expected. Currently the recovery in local sales is relatively stronger than in international sales.
Overall, current sales performance is in line with management expectations and sales volumes continue to be more than 10% ahead of the prior year on a like for like basis. As at 25 January 2011, the Group had contracted £93m of revenues for the current financial year, representing approximately 68% of current market expectations, which is consistent with our long-term average of bookings at this stage of the Group's financial year.
Russell Taylor, Chief Executive, ITE Group plc Tel: 020 7596 5000
Neil Jones, Group Finance Director, ITE Group plc Tel: 020 7596 5000
Charlie Palmer/James Macey-White, Financial Dynamics Tel: 020 7831 3113
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