ITE Group PLC Trading Update (2789E)
03 July 2019 - 4:00PM
UK Regulatory
TIDMITE
RNS Number : 2789E
ITE Group PLC
03 July 2019
3 July 2019
ITE Group plc
("ITE" or the "Group")
Trading Update
ITE Group plc is today publishing a trading update for the
period from 1 April 2019 to the date of this announcement,
incorporating the Group's third quarter trading period from 1 April
2019 to 30 June 2019.
Trading update
The Group's performance in this period was in line with
management expectations.
Revenues for the nine months to 30 June 2019 were circa GBP176m
(nine months to 30 June 2018: GBP134m). On a like-for-like basis
this is an increase of 7% ahead of the comparative period
reflecting solid underlying trading. Four top 10 events took place
in the quarter, which collectively delivered double digit revenue
growth. MosBuild in particular delivered strong double digit
revenue growth for the second year, following TAG investment.
Revenues for the quarter were circa GBP69m (three months to 30
June 2018: GBP58m), due mainly to the improvements delivered in our
top 10 events, together with the impact of acquisitions.
TAG programme and Ascential events integration
The TAG programme is now in its final year and we are seeing
positive momentum due to the scalable platform which has been put
in place.
We continue to manage our portfolio actively and discontinued
two non-core events in the quarter.
We announced the acquisition of the Ascential Events business in
this quarter a year ago. We are pleased to report that the
integration is now complete, with associated costs in line with
guidance. In addition to completing the integration, we have also
realised annualised synergies of GBP5m, at the top end of our
guidance, and we have rolled out product investment plans. We have
delivered on the first-year objectives we set out when we announced
the acquisition.
Contingent Liability
The Group has now settled its litigation with the landlord of
the venue in Siberia, disclosed as a contingent liability in the
FY18 and HY19 reports. Settlement has been reached at approximately
GBP1m, including costs, compared to the GBP20m claim from the
landlord.
Financial position
Net debt as at 30 June 2019 was circa GBP116m after continued
TAG investment in the period, the Mining Indaba deferred
consideration payment and the Ascential Events integration.
Outlook
As at 28 June 2019, the Group had booked circa GBP210m of
revenue for FY19 (6 July 2018: GBP153m) representing 98% of current
market expectations for the full year. On a like-for-like revenue
basis, these bookings are 6% ahead of this time last year, largely
due to the performance of events that have received TAG investment,
particularly in Russia.
Despite continued macro-economic headwinds in certain
end-markets, the benefits of the TAG programme and our higher
quality and more balanced portfolio can clearly be seen in strong
forward bookings into FY20 (10% ahead on a like-for-like basis).
Our core shows have benefitted from the second year of TAG
investment in content, customer success and lead generation,
contributing to greater customer satisfaction.
The Board is confident in the Group achieving its full year
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:
- 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 excluding 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 3545 9000
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.
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Authority to act as a Primary Information Provider in the United
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contact rns@lseg.com or visit www.rns.com.
END
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