Tarsus Regulatory News (TRS)

7 January 2013

Tarsus Group plc

Strategy and year-end trading update

Overview

Tarsus Group plc (LSE: TRS, 'the Group', 'Tarsus'), the international business-to-business media group, today gives a strategy and trading update for the 12 months ended 31 December 2012.

Having achieved its Project 50/13 target to derive 50% of revenues from Emerging Markets in 2013 ahead of schedule, Tarsus is today launching the next stage of its strategy - "Quickening the Pace".

Adjusted pre-tax profits for the year ended 31 December 2012 are expected to be in line with the Board's expectations. These results will show that, on an underlying basis (i.e. adjusting for biennial events), Group like-for-like organic revenue growth, at constant exchange rates, has increased by approximately 13%. Cash flow remained strong with net debt at 31 December 2012 at approximately £16m.

Douglas Emslie, Tarsus Group Managing Director, said:

"2012 was a transformational year for Tarsus with the completion of Project 50/13 well ahead of schedule.

Our "Quickening the Pace" strategy will focus our efforts on the next stage of our development - accelerating the pace of financial returns to our shareholders. We will leverage our management team's deep knowledge of the Group's unique portfolio of definitive events in growth markets to increase the rate of earnings per share growth.

We are experiencing strong sales progress into 2013 and are increasingly confident that we can deliver an excellent outcome for 2013."

Strategy

The Group accomplished its Project 50/13 target to derive 50% of its revenue from Emerging Markets by 2013 more than a year ahead of schedule. This followed the acquisitions during 2012 of Life Media and CYF in Turkey and GZ Auto in China, supplemented by strong growth from the Group's existing portfolio in both Emerging Markets and the US.

Tarsus has today launched the next stage of its growth strategy, "Quickening the Pace". The core focus of "Quickening the Pace" will be to accelerate earnings per share growth, driven by a combination of the geographical replication of our major brands into fast growth economies; organic growth from the existing portfolio; tight cost control and selective bolt-on acquisitions in the US and Emerging Markets.

"Quickening the Pace" will leverage the fundamental changes underway in the world's economies, with growth in the US and selective Emerging Markets poised to further outpace the mature economies of the West. The exhibition markets in which Tarsus operates are now consolidating rapidly to the benefit of companies that achieve early entry.

Emerging Markets

Turkey

The Group continued its expansion in Turkey with the acquisition in March 2012 of 70% of Life Media, the leading housewares and gift exhibition business. In October 2012, Tarsus also acquired, with its partner at IFO, 70% of CYF, the ornamental flowers, plants and landscaping exhibition company.

Ideal Home, the first Life Media exhibition under Tarsus's ownership, was held in April 2012 and performed strongly, with revenues up 50% on the 2011 edition. This was followed by Life Media's largest event, Zuchex, in September which produced an excellent performance with revenues up 12%.

CYF held its first event under Tarsus's ownership, Eurasia Plant Fair, in December and increased revenues by 30%.

IFO had a very successful year. REW, the recycling, environment and waste event was held in June and achieved a record performance with revenues up 19%. Its other event, Sign Istanbul, the largest outdoor advertising trade fair in Europe, was held in December and also reported strong revenues - up 31%.

China

The Group's Chinese joint venture Hope exceeded expectations with revenues up 33%.

In April 2012 the Group agreed terms to acquire 50% of the China International Automotive Aftermarket Industry and Tuning (Guangzhou) Trade Fair ("GZ Auto") and the acquisition was completed in December 2012. GZ Auto's next event will be held in February 2013, and we anticipate a record edition.

The South China Label Show took place in Guangzhou in December 2012, achieving critical mass with revenues up 70%.

Dubai

First half events in Dubai grew well, with a strong performance from GESS (education). MEBA, the biennial business jet exhibition, was held in December 2012 at the new Al Maktoum International Airport at Dubai World Central, which will host the 2013 Dubai Air Show. MEBA achieved record results with revenues increasing 19% and visitors up 20% over the previous edition.

India

Labelexpo India was held in October 2012 with revenues and visitors well up on its previous edition in 2010.

US

The February and August 2012 Off-Price Shows in Las Vegas performed well, with revenues up 7% and 3% respectively.

The Medical division continued to grow strongly in 2012 with revenues increasing by approximately 20%. This was driven by our education programmes, particularly those delivered online. The online programmes were launched just over two years ago and their revenues have now overtaken those from our physical programmes.

The May Orlando Medical event achieved revenue growth of 15% over its previous edition. The final Medical event of the year was held in Las Vegas in December and achieved record results.

Europe

Trading in the Group's French business ended the year in line with Board expectations. The events and education exhibitions performed better than their 2011 editions and a number of smaller new exhibitions were successfully launched during the year partially offsetting a weaker performance from this division's IT events.

Outlook

Bookings for the Group's two largest biennial shows, Labelexpo Europe (September 2013) and the Dubai Airshow (November 2013) are strong with sales well ahead of the previous editions.

The move to a new venue for the 2013 Dubai Airshow has facilitated a broadening of the Group's offering for that show. Tarsus continues to invest to drive strong organic growth from the show that serves the world's fastest growing aerospace region.

The Group's larger events in the first quarter of 2013 - Off-Price in Las Vegas, Ideal Home in Istanbul and Gulf Pack and Print in Dubai - are expected to produce revenues ahead of their previous editions. The US Medical business continues its strong momentum. The Group remains cautious in its outlook for France where the macro economic climate remains uncertain.

We are experiencing strong sales progress into 2013 and are increasingly confident that we can deliver an excellent outcome for 2013.

The Group expects to announce its final results for the year ended 31 December 2012 during the week commencing 4 March 2013.

For further information contact:

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