Financial Statements
98
ITE Group plc
Annual Report and Accounts 2012
27 Related party transactions
Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation
and are not disclosed in this note. Transactions between the Group and its associates, where relevant, are disclosed below.
Trading transactions
In Kazakhstan, ITECA, a Group subsidiary, has transacted with Datacom and Saban Holdings for the provision of web
systems and office rental respectively. Edward Strachan, a Group Director, is a significant shareholder of Datacom and
Saban Holdings. In total, the services charged to ITECA were £72,000 (2011: £54,000).
In St Petersburg, Primexpo, a Group subsidiary, has transacted with Cavalry House for the provision of office rental. Edward
Strachan, a Group Director, is a significant shareholder of Cavalry House. In total, the services charged to Primexpo were
£192,000 (2011: £190,000).
During the year consultancy fees of £238,000 (2011: £303,000) were paid to and a bonus of £224,000 (2011: £330,000)
was earned by Kyzyl Tan Eurasian Advisors Limited (“Kyzyl Tan”) of which Edward Strachan is a significant shareholder.
Kyzyl Tan was also paid a living away from home allowance of £19,000 (2011: £38,000). These payments were made under
a contract for Kyzyl Tan to provide the services of Edward Strachan to the Group.
During the year the Company made a non-contractual, voluntary payment of £5,000 to Kyzyl Tan Foundation, a charity
of which Edward Strachan is a trustee.
Remuneration of key management personnel
The remuneration of Directors, who are the key management personnel of the Group, is set out below in aggregate for
each of the categories specified in IAS 24 Related party disclosures. Further information about the remuneration of
individual Directors is provided in the audited part of the Report on Remuneration on pages 52 to 58.
2012
£000
2011
£000
Emoluments
1,991
2,163
Share-based payment
1,383
581
3,374
2,744
28 Post balance sheet events
On 3 December 2012, ITE’s wholly owned subsidiary, Airgate Holdings Ltd, entered into binding agreements for the
acquisition of a 28.3% holding in Asian Business Exhibition & Conferences Limited (‘ABEC’), a company incorporated in
Mumbai. Consideration of INR 1,227 million was settled in cash. The Group has written a put option over an additional 31.7%
stake in ABEC.
ABEC is expected to be earnings enhancing in ITE’s 2013 financial year.
Due to the proximity to the date of signing of these accounts, the accounting and disclosure impact of ABEC has not
been finalised.
On 19 November 2012 the Group refinanced its borrowings under its existing facility. See note 18 for more details
Notes to the consolidated accounts
continued
For the year ended 30 September 2012