15 Nov 2012 07:00
15 November 2012
TARSUS GROUP plc
Interim Management Statement
Tarsus Group plc (LSE: TRS, "Tarsus" or the "Group"), the international business-to-business media group, is today publishing its Interim Management Statement for the period from 1 July 2012 to 14 November 2012.
Overview
Trading for the period has been in line with the Board's expectations and forward bookings for the year to 31 December 2012 now stand at 95% of anticipated full year revenues, compared with 91% at the same time in 2011 (as adjusted for biennial events).
The Group has accomplished its Project 50/13 target to derive 50% of revenue from Emerging Markets by 2013, more than a year ahead of schedule. This achievement has transformed the Group's growth prospects and Tarsus will now focus on quickening the pace of earnings per share growth.
Emerging markets
The Group's emerging markets businesses continue to gain momentum through a combination of strong revenue growth and the successful integration of recent acquisitions.
Turkey
Life Media held its annual international housewares and gift exhibition, Zuchex, in September producing an excellent performance with revenues up 12% on the 2011 edition. The exhibition covered 43,700 net square metres and attendance by both international exhibitors and visitors increased demonstrating the growing international appeal of the event. Life Media is now preparing to launch editions of Zuchex in new markets.
IFO will hold its next exhibition in December. Sign Istanbul, the international outdoor advertising fair, is tracking well ahead of the 2011 edition.
On 6 November 2012, the Group successfully completed the acquisition of CYF Fuarcılık A.Ş. (CYF) in Turkey for a maximum consideration of TL18 million (approximately £6.2 million) adding two annual business-to-business exhibitions in the ornamental flowers, plants & landscaping sector and the construction materials sector.
As a result, Tarsus has achieved its Project 50/13 objective ahead of schedule. CYF is now being integrated into the Group and represents a significant bolt-on opportunity that adds new sectors and scale to Tarsus' Turkish portfolio.
China
Trading in the Chinese business continues to be strong. The Group's exposure to China will increase significantly with the acquisition, announced in April 2012, of 50% of the China International Automotive Aftermarket Industry and Tuning (Guangzhou) Trade Fair ("GZ Auto").
GZ Auto is a leading business-to-business automotive aftermarket exhibition held annually in China, and the next edition will be held in February 2013 in Guangzhou. Sales for the 2013 event are tracking well ahead of the 2012 event. The joint venture will provide Tarsus with exposure to the fast growing Chinese automotive industry and provide opportunities to replicate the event in China and new markets such as Indonesia.
Tarsus expects to complete the acquisition of GZ Auto by the end of the calendar year.
Dubai
The Group's largest event in Dubai in 2012 is MEBA (business aviation) which will be held in December. Forward bookings for this event are tracking well ahead of the previous event.
India
Labelexpo India was another great success for the Group with both revenues and visitors well up on the previous edition in 2010.
US
Medical
The Medical division continues to grow strongly, driven by its education programmes, including those now delivered online. The Medical division will hold its next event in Las Vegas in December and bookings are tracking ahead of the previous edition.
Off-Price
The August 2012 Off-Price Show in Las Vegas performed well, with revenues up 3%. The February 2013 event is tracking ahead of its previous edition.
Labels
Labelexpo Americas was held in Chicago in September 2012 and produced an excellent performance with revenues up 14% and visitors increasing 12% over the previous event. Re-bookings for the 2014 event were very strong at over 81%.
Europe
Trading in the Group's French division has been in line with the Board's expectations. The education and events exhibitions which take place at the end of November are expected to perform better than the 2011 editions. Certain French IT events have performed below their 2011 editions; this has been partially offset by the success of new events launched in France.
Given the current economic and political uncertainty in Europe, Tarsus remains cautious about prospects for its French business
Financial Position
There have been no significant changes to the financial position of the Group since the publication of the interim results on 25 July 2012.
Douglas Emslie, Tarsus Group Managing Director, said:
"We have continued to perform well across our US and Emerging Markets divisions. Our recent acquisitions have further augmented our market leading portfolio and provide opportunities for us to enhance their value with brand expansion into other territories.
"In Turkey, the international appeal of Zuchex in Istanbul has grown significantly since its acquisition. We were particularly pleased to see increased international exhibitors and visitors at the recent event.
"We have completed Project 50/13 well ahead of schedule thereby transforming the Group and its growth prospects. We are now well placed to concentrate our efforts on quickening the pace of our earnings per share growth in growing international markets."
The Group expects to publish a year end trading update on 7 January 2013.
Tarsus is hosting a Capital Markets Session for analysts and investors later today. The event will provide information on the development of the Group's Chinese business (GZ Auto) and the Turkish market. No new material information will be made available.
For further information:
Tarsus Group plc: | |
Douglas Emslie, Group Managing Director | 020 8846 2700 |
Dan O'Brien, Group Finance Director | |
College Hill: | |
Adrian Duffield /Kay Larsen | 020 7457 2020 |
Notes to editors
Tarsus Group plc (LSE:TRS) is an international business-to-business media group with interests in exhibitions, publishing and online media. The Group operates globally in key verticals including aviation, medical, labels and packaging, discount clothing (Off-Price), housewares and automotive. Tarsus runs more than 80 events and websites and its flagship brands include the Labelexpo exhibitions in Europe, the Americas, India and Asia and the Dubai Airshow.
The Group operates across a worldwide network of offices in Dublin, London, Paris, Milwaukee, Boca Raton (Florida), Dubai, Shanghai, New Delhi and Istanbul. Tarsus is building on its strong presence in the emerging markets of the Middle East, China, Turkey, India and South America.
www.tarsus.com