TIDMTRS
RNS Number : 1315X
Tarsus Group PLC
08 January 2014
8 January 2014
Tarsus Group plc
Year end trading update
Record results and strong strategic progress
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 11%.
The Board anticipates that adjusted pre-tax profits and net debt
for the year ended 31 December 2013 will be in line with its
expectations.
Strategy
The Group's "Quickening the Pace" strategy - introduced at the
beginning of 2013 - is focused on accelerating the pace of
financial returns to our shareholders. We have made significant
progress on strengthening and investing in the core business to
drive organic growth.
We have added value to our key brands through continuous
innovation and brand replication in faster growth markets. We have
made two notable strategic deals in the year, establishing
footholds in Mexico and Indonesia. These moves have established a
foundation in key markets we aim to develop in the future.
Corporate Activity
We have today announced the following transactions (see separate
release):
-- China - our acquisition of 50% of the China (Shenzhen)
International Brand Underwear Fair ("SIUF") - providing the Group
with exposure to a leading exhibition in China and offering strong
synergy potential with our US Off-Price business.
-- Turkey - the acquisition of the remaining 25% of our
subsidiary IFO in Turkey. This business has shown strong growth
under Tarsus' ownership and the transaction further consolidates
our position in the fast-growing Turkish market.
-- France - the part disposal of up to 18% of our French
business to Romuald Gadrat, the Managing Director of the division,
continuing our strategy of reducing our exposure to France.
In addition, the Group announced on 26 November 2013 the
acquisition of a 50% interest in a Joint Venture company from EJ
Krause which owns two events in Mexico, giving Tarsus exposure to a
territory which we believe has strong growth potential.
These recent additions to our portfolio provide strong
replication opportunities internationally and demonstrate the way
in which our strategy can deliver value.
Emerging Markets
Dubai
The major event of 2013 was the Dubai Air Show in November which
was held for the first time at a new purpose-built venue. The event
was a great success for our exhibitors who received world record
orders of over $206 billion. Performance at this event was ahead of
expectations with our revenues 25% higher than the 2011 show and a
strong rise in visitor numbers of 11% on a like-for-like basis.
China
Labelexpo Asia, held its 10(th) anniversary event in December in
Shanghai and performed well, with revenues 10% ahead of the
previous edition.
Hope, the Group's Chinese joint venture, delivered another
strong performance in 2013, with revenues up 19%.
The Group's commitment to the Chinese exhibition market is
underlined by the 2012 acquisition of GZ Auto as well as the recent
acquisition of SIUF announced today.
The GZ Auto show held in the first half of 2013 performed
strongly and this brand is being launched into other territories in
2014, including Indonesia and Thailand.
Turkey
Our Turkish business continues to perform well with a total of
seven shows held during the year and like-for-like revenues up 13%
overall.
Zuchex, the international housewares and gifts exhibition held
in September produced an excellent performance. This is another
brand the Group is replicating in other emerging markets, with a
Jakarta show announced for 2014. Our most recent shows, Sign
Istanbul and the Flower Show Istanbul, both took place in November
and performed in line with the Board's expectations.
Indonesia
PTIA held its first IIICE (infrastructure) show under our
ownership in November. This show performed very strongly and is
expected to benefit in 2014 from the joint venture with EJ Krause
to run EXPO COMM alongside it.
US
The February and August Off-Price Shows in Las Vegas performed
well, with revenues up 4% overall.
Overall, the Medical division's revenues for the year were
slightly ahead of the previous year. This division's largest event
was held in December in Las Vegas and performed well, with revenues
up 23%. We are continuing to see a changing mix in our education
revenue streams with more being delivered online and a reduction in
the volumes of on-site educational revenues. As previously
announced, we have been preparing this division for a launch into
the mainstream medical education arena in 2014 which we anticipate
will accelerate future growth.
Europe
Labelexpo Europe took place in September in Brussels. It
produced record increases of 11% in both like-for-like revenue and
visitor attendance. As a result, re-bookings of 87% for the 2015
exhibition were secured. On-site sales for other Label products
were also at record levels.
Trading in the Group's French business ended the year broadly in
line with the Board's expectations.
Douglas Emslie, Tarsus Group Managing Director, said:
"2013 has been another excellent year for the Group. Our major
shows continue to go from strength to strength underlining the
importance of continuing to invest in our market leading brands.
Our moves into Mexico and Indonesia have substantially completed
the footprint in the geographical markets we are aiming to
develop.
"Like-for-like bookings for our shows in 2014 are tracking 12%
ahead of the equivalent time last year notwithstanding slower sales
on GZ Auto caused by protracted venue discussions which have now
been successfully concluded.
"We remain confident of delivering a good performance this year
on a constant currency basis."
The Group expects to announce its final results for the year
ended 31 December 2013 during the week commencing 3 March 2014.
The Company will be hosting a presentation to analysts at
11.00am today at the offices of Investec Bank plc, 2 Gresham
Street, London EC2V 7QP.
For further information contact:
Tarsus Group plc
Douglas Emslie, Group Managing Director 020 8846 2700
Dan O'Brien, Group Finance Director
College Hill:
Adrian Duffield/ Kay Larsen 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, Jakarta, New Delhi and Istanbul. Tarsus is building on
its strong presence in the emerging markets of the Middle East,
China, Turkey, India, Indonesia 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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