Interim Management Statement
ITE Group plc is today publishing its Interim Management Statement for the period from 1 October 2009 to the date of this announcement, incorporating the Group’s first quarter trading period from 1 October 2009 to 31 December 2009. 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 2009 to 28 January 2010.
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 2009 was £15.1m, (three months to 31 December 2008: £19.7m). As previously highlighted, events taking place during the first quarter have traded below last year’s comparable events which mostly enjoyed strong ‘pre-crisis’ trading conditions.
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 2009. Exhibition space sales were down 23% compared to last year’s event and conference revenues were similarly affected, both reflecting the changed trading environment. Other significant exhibitions to have taken place during the period included Pharmtech, Ingredients Russia, Bakubuild, Public Health and the Turkmenistan Oil & Gas conference, the latter showing good growth over last year’s event.
The Group’s balance sheet remains strong with net cash at 22 January 2010 of approximately £29m.
Corporate development in the period
As announced on 1 December 2009, the Group purchased 70% of Airgate Holdings Limited, a Cypriot company which in turn owns 100% of the shares in an Indian exhibition organiser based in Delhi. Its Paperex event, which took place in Delhi in December 2009 was the first exhibition to run under ITE’s ownership and sold 7,300m2 (2007: 6,662m2).
On 31 December 2009 ITE entered into an agreement to split the assets of ITF, ITE’s associate company in Turkey, giving ITE 100% control of certain exhibitions. The proposed transaction is subject to approval by the Turkish Competition Board. The change to 100% ownership will present ITE with the opportunity to improve further the management and development of these events.
Trading conditions in our core markets remain stable, and future bookings for the remainder of the year are progressing as expected with local sales ahead and international sales marginally behind last year’s comparable figures.
Overall, the current sales performance is in line with management expectations. As at 25 January 2010, the Group had contracted £69m of revenues for the current financial year, representing approximately 67% of current market expectations, which is consistent with our long-term average of bookings at this stage of the Group’s financial year.
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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/Matt Dixon, Financial Dynamics
Tel: 020 7831 3113