LONDON (Alliance News) - Exhibitions firm ITE Group PLC said Wednesday that after a better than expected fourth quarter, it now expects its headline pretax profit for the full year to be ahead of current market consensus.
ITE expects to post revenue of GBP174 million for the full year that ended September 30, down from GBP193 million a year before. Revenue in the fourth quarter fell 7%, it said, although it rose 6% to GBP29 million, from GBP27 million on like-for-like constant currency basis.
The group ran 38 events in the fourth quarter, including the World Food Moscow food exhibition with saw visitor numbers up 12%. It said recently imposed sanctions against EU and US food imports in Russia had a "minimal effect" on overall sales. A small number of cancellations from European exhibitors was largely offset by additional sales to areas like Egypt and Turkey, it said.
Its UK fashion event MODA was slightly larger than the previous year at 17,200 square meters.
As at last Friday, ITE had booked GBP60 million in revenue for the current year, around 34% of current market expectations. It warned that sterling strength is expected to hit its earnings for the current year if current rates against the euro and ruble are sustained.
Although bookings are behind the previous year, they are in line with management expectations taking into account the ongoing political crisis in Ukraine hampering its business in the region.
Economic sanctions made by both Russia and the EU have not hit its Russian business to date, but they are expected to weigh on the Russian economy in the future, ITE warned. ITE said it will "continue to monitor the situation but benefits from a flexible cost structure and will take appropriate steps to protect its margins."
Shares in ITE were trading up 3.0% at 174.50 pence Wednesday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
