TIDMTRS
RNS Number : 0146V
Tarsus Group PLC
05 January 2012
5 January 2012
Tarsus Group plc
Year end trading update - record results and strong cash
generation
Tarsus Group plc (LSE: TRS, 'the Group', 'Tarsus'), the
international business-to-business media group, has ended the year
strongly with record revenue and profitability.
Group like-for-like organic revenue growth, at constant exchange
rates, increased by approximately 8%. Excluding France, organic
revenue growth was approximately 13%.
The Board expects adjusted pre-tax profits for the year ended 31
December 2011 to be in line with its expectations. Cash flow
remained strong with net debt at 31 December 2011 at approximately
GBP14 million - well ahead of expectations and a halving of debt
since the beginning of 2011.
Strategy
The Group's focus continues to be on large market leading
exhibitions and the active management of its portfolio. In addition
to the disposal of Modamont in France in Q4, Tarsus has also
recently sold its small online businesses in both the UK and the
US.
Tarsus remains committed to its strategy of increasing its
exposure to Emerging Markets (Project 50/13 - whereby 50% of Group
revenue will be sourced from Emerging Markets by 2013) and driving
organic growth across the business. This strategy has already
yielded tangible results with the acquisition of IFO in Turkey and
notable growth from the Middle and Far East businesses.
Middle and Far East markets
The Group's first half events in Dubai grew well with notable
performances from GESS (educational equipment) and Gulf Print &
Pack.
Hope, the Group's Chinese joint venture, delivered a record
performance in 2011 with revenues up 25%. It continues to gain
momentum with strong performances from its medical equipment
exhibitions.
In June Tarsus completed the acquisition of 75% of IFO in
Turkey, in line with the Group's long term strategy of increasing
the proportion of business derived from Emerging Markets.
The first Sign Istanbul exhibition under the Group's ownership
took place in early December and was a major success. Revenues were
up 28% on the previous edition and visitor numbers were strong.
Labelexpo Asia, which took place in late November in Shanghai,
saw revenues and visitors increase by 41% and 9%, respectively. The
event saw an increase in customer sales and, as a result,
rebookings for the 2013 edition were at record levels.
The Dubai Airshow held in November delivered another record
performance with revenues up 3% and visitors up 7%. Exhibitors had
an excellent show with total orders for planes at $68 billion
(2009: $14 billion). In total, 960 companies from 50 countries
exhibited.
US
The February 2011 and August 2011 Off-Price Shows in Las Vegas
performed well, with revenues up 10% and 6% respectively. The
broadening of the offer to retailers through the inclusion of
footwear and accessories has been a major factor in this division's
success.
In 2011, the Medical division demonstrated outstanding growth
with revenues increasing by approximately 20%. This growth was
driven primarily by its education programmes, including those now
delivered online. The final event of the year and the largest in
the sector, in Las Vegas in December, was a record event with
revenues up 11%.
Europe
Labelexpo Europe, the Group's second largest exhibition, took
place in September in Brussels. It produced a like-for-like revenue
increase of 14% and record attendance, with an improvement of over
18% compared with its 2009 edition. As a result of this strong
performance, re-bookings of 81% for the 2013 exhibition were
secured. On-site sales for other Label products were at record
levels.
The disposal of Modamont in early December materially reduced
the Group's exposure to the lower growth European market and less
than 10% of Group profits are expected to be generated from France
in future. Tarsus France will continue to focus on its remaining
wholly owned portfolio of exhibitions.
For the year as a whole, revenues in France were down 4%. In the
last quarter, trading in the French division has been in line with
the Board's expectations with Educatec growing both its revenues
and visitors.
Douglas Emslie, Tarsus Group Managing Director, said:
"The year ended well, resulting in record revenue and
profitability. Cash flow was strong with net debt halving.
"We have one significant event in the first quarter of 2012 -
the Off-Price Show in Las Vegas. Current indications are that it
will produce revenues ahead of the equivalent event in 2011.
"We are encouraged by the momentum of our US Medical business,
Off-Price events and Labelexpo Americas, but remain vigilant given
the second half weighting of our profits and the ongoing macro
uncertainty in Europe.
"The momentum we are building across the Middle and Far Eastern
markets augurs well for 2013 when our two large biennial events
recur."
The Group expects to announce its final results for the year
ended 31 December 2011 during the week commencing 5 March 2012.
There will be an analyst conference call at 8.00 am - please
contact Lucy Moseley at lucy.moseley@collegehill.com or by
telephone on 020 7457 2040 for details.
For further information contact:
Tarsus Group plc
Douglas Emslie, Group Managing
Director 020 8846 2700
Dan O'Brien, Group Finance Director 020 8846 2700
College Hill
Kay Larsen/Adrian Duffield 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) and business services (France).
Tarsus runs more than 80 events and websites and its flagship
brands include the Dubai Airshow and the Labelexpo exhibitions in
Europe, the Americas, India and Asia.
The Group employs approximately 200 people across a worldwide
network of offices in Dublin, London, Paris, Milwaukee, Boca Raton
(Florida), Dubai, Shanghai, New Delhi and Istanbul, and over 60
staff in Central and Western China through a joint venture with
Hope.
Tarsus is building on its strong presence in the emerging
markets, primarily focused on the Middle East, China and Turkey.
Under its "Project 50/13" initiative, it aims to derive 50% of
Group revenue from these high growth markets in 2013.
www.tarsus.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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