Home TypeNews ITE trading update reports 42% revenue rise on back of acquisitions

ITE trading update reports 42% revenue rise on back of acquisitions

by Paul Colston

Global exhibition and events organiser, ITE Group plc has published a trading update ahead of its interim results for the six months ended 31 March 2019. It reports revenues for the period were up 42 per cent to circa £107m (six months to 31 March 2018: £75m).

The company attributed the results to the addition of acquired events – seven former Ascential events and Mining Indaba – as well as strong organic performance from core events, including Africa Oil Week and YugAgro.

The Group’s performance in the period was in line with management expectations, an ITE statement said, adding that, on a like-for-like basis, revenues for the six-month period were six per cent higher than the comparative period.

“Excluding Acetech Delhi – where we have temporary venue capacity constraints as previously signalled – our like-for-like revenue growth is eight per cent. The five largest shows in the period which have had TAG investment collectively delivered double-digit revenue growth,” the company statement said.

Net debt as at 31 March 2019 was approximately £114m, an increase of circa £31m since 30 September 2018 (31 March 2018: £51m) as a result of the acquisition of Mining Indaba and planned TAG (Transformation and Growth) and Ascential Events integration investment.

The company added that its focus was on the roll out of the new People systems across the business and the design and build of a new global ERP solution. “Integration of the Ascential Events business is now largely complete and we are confident of realising annualised synergies of £5m, at the upper end of our guidance. The investment plans to drive growth in FY20 are well developed and on track,” the statement said.

The company also reported it had closed 24 small events over the period under review, which collectively had made a small loss.

In terms of future outlook, the company said that investments into products and operational improvements were driving growth, despite some known headwinds including Brexit and macro-economic issues in Turkey, and their resulting currency impacts.

“As at 28 March 2019, forward bookings were circa £191m of revenue for FY 2019 (29 March 2018: £137m), representing circa 89% of current market expectations for the full year,” the report said. “On a like-for-like basis, booked revenues are 6% ahead of this time last year, reflecting strong growth from our core events. Looking ahead to FY20, booked revenues are 18 per cent ahead of this time last year.

“The Board is pleased with the Group’s performance to date, and remains positive in achieving full year expectations.”

The full interim results will be announced on 14 May 2019.

Photo: ITE Group CEO Mark Shashoua

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