Q3 trading update in line with management expectations
ITE Group plc
("ITE" or the "Group")
ITE Group plc is today publishing a trading update for the period from 1 April 2019 to the date of this announcement, incorporating the Group's third quarter trading period from 1 April 2019 to 30 June 2019.
The Group's performance in this period was in line with management expectations.
Revenues for the nine months to 30 June 2019 were circa£176m (nine months to 30 June 2018: £134m). On a like-for-like basis this is an increase of 7% ahead of the comparative period reflecting solid underlying trading. Four top 10 events took place in the quarter, which collectively delivered double digit revenue growth. MosBuild in particular delivered strongdouble digit revenue growth for the second year, following TAG investment.
Revenues for the quarter were circa £69m (three months to 30 June 2018: £58m), due mainly to the improvements delivered in our top 10 events, together with the impact of acquisitions.
TAG programme and Ascential events integration
The TAG programme is now in its final year and we are seeing positive momentum due to the scalable platform which has been put in place.
We continue to manage our portfolio actively and discontinued two non-core events in the quarter.
We announced the acquisition of the Ascential Events business in this quarter a year ago. We are pleased to report that the integration is now complete, with associated costs in line with guidance. In addition to completing the integration,we have also realised annualised synergies of £5m, at the topend of our guidance, and we have rolled out productinvestment plans. We have delivered on the first-year objectives we set out when we announced the acquisition.
The Group has now settled its litigation with the landlord of the venue in Siberia, disclosed as a contingent liability in the FY18 and HY19 reports. Settlement has been reached at approximately £1m, including costs, compared to the £20m claim from the landlord.
Net debt as at 30 June 2019 was circa £116m after continued TAG investment in the period, the Mining Indaba deferred consideration payment and the Ascential Events integration.
As at 28 June 2019, the Group had booked circa £210m of revenue for FY19 (6 July 2018: £153m) representing 98% of current market expectations for the full year. On a like-for-like revenue basis, these bookings are 6% ahead of this time last year, largely due to the performance of events that have received TAG investment, particularly in Russia.
Despite continued macro-economic headwinds in certain end-markets, the benefits of the TAG programme and our higher quality and more balanced portfolio can clearly be seen in strong forward bookings into FY20 (10% ahead on a like-for-like basis). Our core shows have benefitted from the second year of TAG investment in content, customer success and lead generation, contributing to greater customer satisfaction.
The Board is confident in the Group achieving its full year expectations.
Notes to Editors
1. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period.This excludes:
- Biennial events;
- Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
- Cancelled or disposed of events that did not take place under our ownership in the current year;
- Acquired events in the current period; and
- Acquired events in the comparative period that didn't take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
2. Top 10 events – these are defined as the top 10 events by revenue excluding the acquisition of Ascential Events Limited and Mining Indaba.
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