trong>Trading performance

The current financial year has started well with good trading conditions in the Group’s core markets of Russia and the CIS.  Revenues in the three month period to 31 December 2007 were £13.9m, approximately 5% ahead of the comparable figure for the prior year after adjusting for timing differences. Without adjusting for timing differences, revenues in the prior year’s comparable trading period were £14.2m.

The Kazakhstan International Oil and Gas Exhibition was the only one of the Group’s ten largest contributors to take place during the three month trading period to 31 December 2007. The exhibition capitalised on the new pavilion space at Atakent resulting in a 16% increase in square metres sold over last year’s event. The associated conference held with the exhibition delivered similar growth. Other important events which took place in the first three month trading period of the current financial year were Ingredients Russia, Pharmtech and Expoclean (in Moscow) and Informatica and Public Health (in Kyiv). 

The net timing difference in revenues between the three month period to 31st December 2007 and the comparable three month period for last year relates to the Algerian Oil and Gas Exhibition, which was a one-off event for ITE that took place in November 2006, and the Turkmenistan Oil and Gas conference which took place for the first time in November 2007. The Turkmenistan event was a significant success and ITE hopes to make it an annual event in the future.trong>

Board Changes

Following an approach from private equity, Bill Dye, Chief Executive, is resigning from the Group with immediate effect.  The Nomination Committee will shortly begin a process to replace him and will be meeting both internal and external candidates.  During this period Russell Taylor, Finance Director, will become acting Chief Executive to ensure continuity, supported by Executive Director Edward Strachan, who manages ITE’s operations in Russia and the CIS.

trong>Financial position

The Group has reached agreement to advance US$2m to Atakent in Kazakhstan in order that it can develop a new modern exhibition facility in Atyrau and to modernise some of the older pavilions at its Almaty exhibition facility. It is expected the work will be completed during 2009.

The recent strenh of the Euro will have an impact on the Group at the interim and full year stages. If current exchange rates prevail the Group will benefit from the stronger Euro in its revenue line, but is expected to record ‘mark to market’ provisions against the financial instruments held as an economic hedge against its Euro transactions at the interim stage. Approximately 70% of the Group’s revenues are Euro denominated, and management expect the benefit to the Group’s revenues of the strong Euro to at least offset the cost of the provisions over the full financial year.

The Group had net cash at 25 January 2008 of approximately £41m. 

trong>Outlook

The outlook for the Group remains positive. As at 25 January 2008 the Group had booked £71m of revenue for the current financial year representing approximately 70% of market expectations for the full year. The Group’s like for like revenues at this point of the year remain more than 10% ahead of the comparable figure at the same tim