15 Jul 2014 07:00
15 July 2014
ITE Group plc
("ITE" or the "Group")
Interim Management Statement
ITE Group plc is today publishing its Interim Management Statement for the period from 1 April 2014 to 14 July 2014, incorporating the Group's third quarter trading period from 1 April 2014 to 30 June 2014.
Trading Performance
As anticipated in the Group's interim results, the Group experienced a challenging trading environment in its third quarter. Revenues in the three month period to 30 June 2014 were £73m (2013: £96m), reflecting the absence this year of the biennial Moscow International Oil & Gas Exhibition along with continued negative currency movements and the impact of the political crisis on the Group's Ukrainian business. Overall, like-for-like revenues on a constant currency basis for the third quarter were 2% lower than the previous year (all attributable to the shortfall in Ukrainian revenues) and 16% behind on an actual basis.
The principal trading highlights of the third quarter were:
· Mosbuild, the Group's principal Moscow construction event delivered a solid performance, but in common with other construction businesses in Russia reported lower volumes than the previous year's event selling 65,400sqm (2013: 68,700sqm).
· Turkeybuild is the leading construction event in Turkey. The 2014 event was space constrained and delivered a small increase in volumes selling 36,300sqm (2013: 36,200sqm). Venue capacity is being expanded with completion of new space due in Autumn 2014 which will provide an opportunity for the event to grow from 2015 onwards.
· Beauty Eurasia was acquired by the Group in October 2013, and serves the beauty, cosmetics and personal care market in Turkey and the surrounding region. The event performed ahead of expectations in its first edition as an ITE owned event delivering 9,600sqm (2013: 8,000sqm).
Business development
The Group continues to execute its strategy of expanding its operations to new markets with potential for further growth. On 11th June 2014, ITE acquired 50% of PT Debindo based in Jakarta, Indonesia for an initial consideration of £3.1m. The company owns the Indobuidltech series of construction exhibitions in Indonesia, the largest of which takes place annually in Jakarta each June. This year the event delivered sales of 12,900sqm (2013: 12,000sqm).
Financial position
The Group had net debt of circa £16m as at 11 July 2014 (2013: net cash of £17m), after spending circa £48m on acquisitions and deferred consideration during this financial year. The Group has recently secured increased funding from its main banks and now has £80m of facility committed until June 2018.
Outlook
The Board remains confident in the outlook for the current financial year. As at 11 July 2014, the Group had contracted revenues of circa £167m for the full year which on a like-for-like basis is 10% less than this time last year. On a constant currency basis like for like revenues would be circa 2% ahead of revenues for this time last year. The Group remains in a strong financial position, generating strong cash flows and is well placed to continue to diversify its business into new markets and geographies.
Enquiries
Russell Taylor, CEO 020 7596 5000
Neil Jones, CFO
ITE Group plc
Charles Palmer/Emma Appleton 020 3727 1000
FTI Consulting
This Interim Management Statement is prepared for and addressed only to the Group's shareholders as a whole and to no other person. The Group, its directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Interim Management Statement are based on the knowledge and information available to the Group's Directors at the date it was prepared and therefore the facts stated and views expressed may change after that date. By their nature, the statements concerning the risks and uncertainties facing the Group in this Interim Management Statement involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this Interim Management Statement contains any statement dealing with any time after the date of its preparation such statement is merely predictive and speculative as it relates to events and circumstances which are yet to occur. The Group undertakes no obligation to update these forward-looking statements.
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