LONDON (Alliance News) - Shares in exhibitions and conferences company ITE Group PLC dropped on Thursday morning after the company said revenue in the first quarter of its financial year fell due to the turmoil on Ukraine and said it is facing a big hit from the deterioration of economic conditions in Russia.
Shares in the company were down 5.4% to 136.00 pence on Thursday morning, one of the worst performers in the FTSE All-Share, after it reported revenue for the three months to the end of December fell to GBP25.4 million from GBP36.3 million a year earlier.
The group said the deterioration in Russia did not hit its first quarter results, but the ongoing conflict in eastern Ukraine took a full toll, in combination with a weaker biennial pattern than in the comparable period in 2013. Like-for-like revenue in the quarter dropped 18% on a reported basis.
ITE said trading conditions in Russia have deteriorated in the past couple of months on the back of the drop in the oil price and the depreciation of the rouble against major currencies. The events sector is taking a hit from the economic problems, with events in sectors holding significant exposure to imported products more heavily affected.
The group said like-for-like sales for Russia now are running at around 20% lower year-on-year and the company is taking steps to try to maintain margins.
Total group like-for-like trading volumes are down 17% year-on-year, and revenue is down 15%, in line with its current expectations.
ITE said it is continuing to monitor the situation in Russia and is confident it will be able to weather the storm.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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