3 Oct 2017 07:00
3 October 2017
ITE Group plc
("ITE" or the "Group")
Pre-close trading update
ITE Group plc, the international exhibitions group, has today issued the following update for the year ended 30 September 2017, prior to entering its close period and ahead of its preliminary results announcement on 28 November 2017.
Trading
The Group's performance in Q4 was in line with management expectations. Following the strategy update, the Group has been focusing on core market leading events and this has seen strong revenue growth which has offset the cancellation of smaller, non-core, low yielding events.
Revenues for FY 2017 are expected to be circa £151m (2016: £134m). On a like-for-like basis, revenues will be circa 3% ahead of the prior year.
Excluding event cancellations and launches, like-for-like revenue growth will be circa 5% which represents the first year of like for like growth in 4 years and is in spite of challenging conditions in some of our markets.
Financial position
The Group's financial position continues to strengthen, with strong cash conversion helping to reduce net debt to circa £50m (30 September 2016: £59m).
Transformation & Growth ("TAG") Programme update
The three year TAG Programme, announced on 16 May 2017, is progressing according to plan. The 'Best Practice' team has now been established and we have implemented new performance management processes and sales incentive schemes, leading to demonstrable results as we transition towards a sales performance culture.
One area of particular focus has been onsite rebooking at a number of core events, and this has been successful in improving sales visibility into FY18 as described in more detail below.
Outlook
As at 30 September 2017, the Group had booked circa £79m of revenue for the 2018 financial year (2017: £58m). On a like-for-like basis, these revenues are 28% ahead of this time last year and on a volume basis are 18% ahead reflecting the impact of earlier bookings and the focus on core events following launch of the early TAG initiatives. The Board remains confident in the Group's future prospects.
Where used, like-for-like measures are stated on a constant currency basis adjusted to exclude acquisitions impacting results for the first time, biennial events, and event timing differences.
Going forward, including our outlook comments, we will report like-for-like excluding launches and cancellations as we believe that this is a better reflection of our underlying business performance as we implement the TAG programme.
-ends-
Enquiries
Mark Shashoua, Chief Executive Officer, ITE Group plc Tel: 020 7596 5000
Andrew Beach, Chief Financial Officer, ITE Group plc Tel: 020 7596 5000
Charles Palmer/Emma Appleton, FTI Consulting Tel: 020 3727 1000
Nick Westlake/Toby Adcock, Numis Securities Ltd Tel: 020 7260 1000
This Pre-close trading update 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 update is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed. Statements contained in this Pre-close trading update 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 update involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. To the extent that this update 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.