ITE Group plc today published its Interim Management Statement for the period from 1 April 2013 to 15 July 2013, incorporating the Group’s third quarter trading period from 1 April 2013 to 30 June 2013.
The statement follows:
Good trading conditions continue in our core markets and the Group is trading in-line with management expectations. Revenues in the three month period to 30 June 2013 were £95m (2012: £76m). This year’s result includes a contribution from the biennial Moscow International Oil & Gas exhibition along with a first time contribution from Metaltech in Kuala Lumpur, Mayalsia, which the Group acquired in January 2013. On a like-for-like basis revenues for the third quarter were 8% higher than the previous year.
The principal trading highlights in the third quarter were:
· Mosbuild, the Group’s principal Moscow construction event continued to prove its resilience in the face of continuing competition and grew volumes by 4% to 68,500 sqm.
· Moscow International Oil & Gas exhibition, performed strongly with volumes up (since the 2011 event) by over 5% to 24,000 sqm (2011: 22,800 sqm).
· Turkeybuild is the leading construction event in Turkey. The event, which is space constrained, delivered a small increase in volumes selling 36,200sqm (2012: 36,100sqm). Plans are now in place to add capacity at the venue which will provide an opportunity for the event to grow strongly from 2015 onwards.
The Group continues to execute its strategy of expanding its operations to new markets with potential for further growth. On 11 April 2013, ITE acquired 50% of ECMI based in Kuala Lumpur, Malaysia for an initial consideration of MYR 8.1m (£1.7m) and a deferred consideration of approximately MYR 4.1m (£0.9m) due in April 2014. In addition the Group holds put and call options to acquire the additional equity in 2017 and 2019. ECMI runs a number of small annual exhibitions in the Beauty and Lab technology sector in Malaysia, Vietnam and Indonesia.
The Group had net cash of £17m as at 12 July 2013 (2012: net debt of £1.7m), after spending circa £26m on acquisitions and deferred consideration during this financial year.
Year to date, the Group has delivered good organic growth supplemented by the continued investment in new businesses which extend the Group’s reach into new emerging markets. As at 12 July 2013, the Group had £184m of sales booked for the current financial year (this time last year: £164m), representing approximately 98% of the consensus revenue expectations for this financial year.
The Group continues to experience good trading conditions in its principal markets and the Board remains confident in the full year outcome.