TIDMTRS
RNS Number : 9007U
Tarsus Group PLC
07 January 2013
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
GBP16m.
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:
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), 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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