Performance was in line with management expectations for ITE Group in its Q1 trading update as the Ascential Events integration and acquisition of Mining Indaba both near completion.
Revenues for the quarter – 1 October 2018 to 31 December 2018 – were approximately £31.5m (down from £40.7m in 2017)
The organiser attributed to the drop largely to a smaller biennial quarter and the absence of the 56 ‘non-core’ Russian events which were divested in early October 2018.
When it came to the Ascential integration, the statement read: “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.”
In December 2018 ITE closed its Siberian operation, following four years of losses in the region.
The acquisition of Mining Indaba was completed during the quarter and upfront consideration of £20m settled. Continued TAG investment, the Ascential integration costs and strong operating cash conversion resulted in net debt as at 31 December 2018 of circa £108m, an increase of circa £20m since 30 September 2018 (31 December 2017: £52m) and in line with the company’s expectations.
The statement concluded that, ‘despite some well-documented headwinds, including macro-economic issues in Turkey, tensions between Ukraine and Russia, Brexit and currency movements’, the company was continuing to benefit from investing in products and operational improvements.
Pictured: CEO Mark Shashoua