14 Jul 2015 07:00
14 July 2015
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 2015 to 13 July 2015, incorporating the Group's third quarter trading period from 1 April 2015 to 30 June 2015.
Trading Performance
The Group's trading for the third quarter of the financial year was in line with management's expectations. Revenues in the three month period to 30 June 2015 were £58m (2014: £73m) which reflect both the challenging trading conditions in Russia and the relative weakness of the Euro and the Ruble against our reporting currency. As previously announced trading conditions in Russia have stabilised over the last few months and consistent with this the like-for-like revenues for the third quarter were 17% lower than over the same period last year. The results this year include the biennial Moscow International Oil & Gas Exhibition which delivered a solid performance selling 18,000sqm (2013: 24,000sqm) in difficult market conditions.
Financial position
The Group had net debt of £54m as at 10 July 2015, after spending circa £54m on acquisitions and deferred consideration during this financial year. With a secured debt facility of £100m the Group has a stable financial base from which to continue developing its business.
Corporate development
In accordance with the Group's strategy, ITE it has continued to diversify its business outside Russia through a number of acquisitions made during the first half of the year, all of which are performing in line with our expectations, including Africa Oil Week which will take place and be reported in the next financial year.
Outlook
As indicated in our interim results, the trading environment in Russia has now stabilised. The Board remains confident in the outlook for the current financial year, with 96% of consensus revenues now contracted. As at 10 July 2015, the Group had contracted revenues of circa £130m for the full year which, on a like-for-like basis, is 14% less than 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.
Where used, like-for-like measures are stated on a constant currency basis adjusted to exclude acquisitions impacting results for the first time, event timing differences and biennial events.
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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