3 October 2016
ITE Group plc
("ITE" or the "Group")
Pre-close trading update
ITE Group plc, the international exhibitions group, has today issued the following update for the year ended 30 September 2016, prior to entering its close period and ahead of its preliminary results announcement on 29 November 2016.
Overall, the Group's performance in Q4 was broadly in line with management expectations. Revenues in the three month period to 30 September 2016 were circa £23m (2015: £23m). As expected, on a like-for-like basis revenues are down by 8%, as the impact of difficult economic conditions in our core markets continue to be reflected in our results.
Whilst the Group has benefited from Sterling weakness since June on the translation of overseas revenues, the attempted coup in Turkey in July has negatively impacted our September events in the region. This quarter also included World Food Moscow, the Group's leading food exhibition and whilst the challenging conditions in Moscow resulted in a further decline in space sales to 20,200sqm (2015: 22,600sqm) this was in line with management expectations.
Management expectations for the full year remain unchanged with revenues for FY 2016 expected to be circa £133m (2015: £136m).
The Group remains in a sound financial position, operating within its £93m facility with net debt of circa £60m as at 30 September 2016 (2015: £55m) after spending £18m on acquisitions in the financial year.
ITE's focus is currently on organic trading and integrating its recent acquisitions. As previously announced, the Group agreed terms to acquire a 70% stake in a small Shanghai-based business and the completion of this transaction awaits Chinese government approval which is anticipated during October.
As expected, trading conditions in a number of the regions in which we operate continue to be challenging.
In addition, the recent attempted coup in Turkey has significantly affected international travel to the region and our bookings on Turkish events. The improvement in relations between Russia and Turkey is a positive development but we do not expect to see the benefits of this to materialise until 2018.
As at 30 September 2016, the Group had booked circa £58m of revenue for the 2017 financial year (2016: £48m), which is 1% behind the prior year on a like-for-like basis.
Where used, like-for-like measures are stated on a constant currency basis adjusted to exclude acquisitions impacting results for the first time, event timing differences and biennial events.
Mark Shashoua, CEO 020 7596 5000
Des McEwan, Interim Group Finance Director
ITE Group plc
Charles Palmer/Emma Appleton/Antonia Gray 020 3727 1000
This Pre-close trading update is prepared for and addressed only to the Group's shareholders as a whole and to no other person. The Group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this update is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Pre-close trading update are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Group in this update involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this update contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Group undertakes no obligation to update these forward-looking statements.
This information is provided by RNS