Q1 Interim Management Statement

ITE Group plc is today publishing its Interim Management  Statement for the period from 1 October
2013 to the date of this announcement, incorporating the Group's first quarter trading period from 1
October 2013 to 31 December 2013. 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  2013 to 30 January
Trading Update
The first quarter is the Group's smallest quarter by revenue with the only leading event to run during this period being the recently acquired Chinacoat exhibition. The Group's trading for the first three months  of  the  financial  year  has  been  ahead  of  management  expectations  despite  the  relative strength of Sterling against our major trading currencies.
Revenue  for  the  three  month  period  to  31  December  2013  was  £36.3m,  (three  months  to  31
December 2012: £28.7m). This year's first quarter result reflects a stronger biennial pattern than the previous year and favourable timing on events in Central Asia. On a like‐for‐like basis (unadjusted for currency movements) revenues for the quarter are ahead of the comparative period by 10% (15% on a constant currency basis), with the strongest growth coming from Central Asia, followed by Russia.
Financial position
The Group's balance sheet remains strong with net debt of £3m (and facilities in place of £30m) as at
23 January 2014.
Corporate development
On the 15th of October 2013, the Group purchased the Beauty Eurasia event for €8m in cash. Beauty Eurasia is an annual event that takes place in Istanbul which serves the beauty, personal care and cosmetics industries in Turkey and the surrounding region. Beauty Eurasia is the leading event of its kind in Turkey and complements  the Groups leading beauty events in Ukraine and SE Asia. To date the sales for the event are performing as expected.

On 18 November 2013, the Group purchased a 50% stake in the ChinaCoat / SF China exhibition for
£33m in cash, £30m of which was paid on completion  with the balance  due for payment  in June
2014. The exhibition serves the paints, coatings and surface finishing industries in China and SE Asia. The  2013  edition  took  place  in  Shanghai  on  the  20  November  selling  34,500m2  net  and  was attended  by  over  36,000  professional  visitors,  in  line  with  our  expectations  at  the  time  of  the acquisition.
Trading  conditions  in our core  markets  remain  positive  and  the  Group  has contracted  £121m  of revenues  for  FY  2014.  Despite  the  continued  appreciation  of  Sterling  against  our  major  trading currencies contracted revenues are ahead of the prior year on a like‐for‐like basis (unadjusted for currency movements) by 2% (11% on a constant currency basis). Current sales represent circa 62% of current market expectations which is consistent with our long‐term average of bookings at this stage of the Group's financial year.
The Board continues to monitor the political uncertainty in Ukraine which could affect international sales into the country, however the region is only a small part of the Group and any effect will be immaterial to the Group's results.
ITE will announce Interim Results for the six month ended 31 March 2014 on Monday, 19 May 2014.

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
James Serjeant, Numis Securities Ltd                                                Tel: 020 7260 1309

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