RNS Number : 1926W
ITE Group PLC
26 January 2012
26 January 2012
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 2011 to the date of this announcement, incorporating the Group's first quarter trading period from 1 October 2011 to 31 December 2011. This coincides with the Group's AGM which is being held at 12 noon 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 2011 to 26 January 2012.
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 2011 was £31.0m, (three months to 31 December 2010: £20.5m). This period includes revenues from events acquired during the previous 12 months and on a like-for-like basis revenues for the quarter are ahead of the comparative period by 17%.
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 2011, achieving sales of 8,500 sqm an increase of 9% over the prior year. The Group acquired the licence to run the Kazenergy Forum in Astana this year and this has contributed to an overall increase in conference revenues of 30%.
The Group benefitted from the first editions under its ownership of the Autumn portfolio of events acquired with MVK, Krasnodar and Yapi during 2011. All events performed in line with or ahead of the Group's initial expectations. Other significant exhibitions to have taken place during the period included the Pharmtech, Bakubuild, Bakutel and Public Health, all of which performed well, showing good growth.
The Group's balance sheet remains strong with net cash at 22 January 2012 of approximately £12m. This is after making full payment of $6m for Autoexpo acquired in November 2011, a further £1.2m of contingent consideration relating to FY 2011 transactions and £4.6m in prepaid rentals to the owners of the newly constructed exhibition venue in Novosibirsk, Russia.
Corporate development in the period
As announced on 28 November 2011, the Group purchased the exhibition assets of Autoexpo, a Ukrainian organising business for a total consideration for $6 million paid in cash on completion. The portfolio of 10 exhibitions acquired includes SIA - the Kyiv International Autosalon, which is the leading motor show in Ukraine, as well as other exhibitions operating in ITE's core sectors of travel & tourism, building & construction and oil & gas.
Trading conditions in our core markets remain positive, and overall bookings for the remainder of the year are progressing in line with management expectations. As at 24 January 2012 the Group had contracted £113m of revenues for the current financial year, 8% ahead of the prior year on a like-for-like basis. This represents circa 67% 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
Charles Palmer/Emma Appleton, FTI Consulting Tel: 020 7831 3113
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