ITE Group PLC Trading update (9419N)
January 24 2019 - 2:00AM
UK Regulatory
TIDMITE
RNS Number : 9419N
ITE Group PLC
24 January 2019
ITE Group plc
("ITE" or the "Group")
Trading update
ITE Group plc is today publishing a trading update for the
period from 1 October 2018 to the date of this announcement,
incorporating the Group's first quarter trading period from 1
October 2018 to 31 December 2018. This coincides with the Group's
Annual General Meeting which is being held at 9am today.
First quarter trading update
The Group's performance in the quarter was in line with
management expectations.
Revenues on a like-for-like(1) basis were 6% ahead of the
comparative quarter reflecting strong underlying trading, partially
offset by temporary venue capacity constraints at Acetech Delhi, as
previously signalled. Excluding Acetech Delhi, our like-for-like
revenue growth is 10%.
As anticipated, revenues for the quarter were circa GBP31.5m
(three months to 31 December 2017: GBP40.7m). The decrease was
largely due to this being the smaller biennial quarter and the
absence of the non-core events in Russia, which were divested in
early October 2018.
During the period, three of our Top 10 events(2) ran in the
quarter - Africa Oil Week ("AOW"), YugAgro, and Acetech Mumbai -
and together these grew double-digit on a like-for-like basis. This
was driven by the TAG investment in AOW and YugAgro.
TAG programme and Ascential events integration
The TAG programme continues to progress according to plan and we
remain focussed on the implementation of the new global CRM and
People systems across the business.
The integration of the Ascential Events business is nearing
completion and is on schedule. The investment plans to drive growth
into FY20 remain on track, with a continuing confidence in
realising the synergies.
Managing the portfolio
We continue to actively manage our portfolio, to enable the
Group to focus both management time and investment on our key
events. In December we closed our Siberian operation, which ran 17
non-core events in FY18. The revenues of these events totalled
GBP2.6m in FY18, and made a small loss. The region had consistently
made losses in the last four years.
Financial position
The acquisition of Mining Indaba was completed during the
quarter and upfront consideration of GBP20m settled. In addition,
continued TAG investment in the period, the Ascential Events
integration costs and strong operating cash conversion resulted in
net debt as at 31 December 2018 of circa GBP108m, an increase of
circa GBP20m since 30 September 2018 (31 December 2017: GBP52m) and
in line with our expectations.
Outlook
We continue to benefit from the investments into products and
operational improvements, despite some well-documented headwinds,
including macro-economic issues in Turkey, tensions between Ukraine
and Russia, Brexit and currency movements. These benefits are most
clearly illustrated in our forward bookings, which were circa
GBP164m of revenue for FY 2019, as at 18 January 2019 (19 January
2018: GBP113m) representing circa 75% of market expectations for
the full year. On a like-for-like basis, these revenues are 8%
ahead of this time last year, reflecting the strong revenue growth
at a number of our big events, most notably Africa Oil Week.
The Board is pleased with the Group's performance, which is in
line with expectations.
Notes to Editors
1. Like-for-like results are stated on a constant currency
basis, after excluding events which took place in the current
period but did not take place under our ownership in the
comparative period and after excluding events which took place in
the comparative period but did not take place under our ownership
in the current period. This excludes all:
- Biennial events;
- Timing differences (i.e. events that ran in only one of the
current or comparative periods, due to changes in the event
dates);
- Launches;
- Cancelled or disposed of events that did not take place under
our ownership in the current year;
- Acquired events in the current period; and
- Acquired events in the comparative period that didn't take
place under our ownership in the comparative period (i.e. they took
place pre-acquisition).
2. Top 10 Events - these are defined as the Top 10 events by
revenue prior to the acquisition of Ascential Events Limited and
Mining Indaba.
For further information please contact:
ITE Group plc
Melissa McVeigh, Director of
Communications +44 (0)20 7596 5000
FTI Consulting
Charles Palmer / Harry Staight +44 (0)20 3727 1000
About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world's
leading organisers of international exhibitions and
conferences.
ITE Group's strategic vision is to create the world's leading
portfolio of content-driven, must-attend events delivering an
outstanding experience and ROI for our customers. In May 2017 the
Group launched its Transformation & Growth (TAG) programme,
which is designed to transform the Company from a geographic-led
business to a product-led business that focuses on market-leading
events, wherever they are in the world. ITE strives to run the best
shows and offer the best service to its customers throughout the
world regardless of location. By putting exhibitors and visitors at
the heart of everything we do, we plan to drive sustainable growth
for our shareholders.
ITE Group is a public limited company and has been listed on the
main market of the London Stock Exchange since 1998.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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