Increased business in the group’s emerging markets portfolio has seen Tarsus post a 13 per cent annual rise in business in the first half of the year.
In its interim management statement for the six months ending 30 June 2013, the group said its emerging markets business gained significant momentum through a combination of revenue growth and the successful implementation of both its Quickening the Pace strategy and 50/30 plan, particularly in the Chinese and Turkish sectors.
The group has reported £12.3m revenue in the emerging markets, up from £7.3m in 2012.
“Over the last three years the group has focused on the balance of the portfolio with the 50/13 plan, with the objective of achieving 50 per cent of revenues in emerging markets,” group managing director Douglas Emslie told EW.
Emslie said this objective was completed more than 12 months ahead of schedule. “Today we are 50 per cent emerging markets, 25 per cent US and 25 per cent Europe,” he added.
The group said where there is trade, there is a growth in markets and therefore exhibitions will do well in these areas. “Having said that, we are increasing our business in emerging markets such as China, Southeast Asia and the Middle East, and looking to decrease in Europe,” said Emslie. “It’s been a difficult five years in Europe, where we’ve seen a flat growth with no more than a 1-2 per cent sluggish growth. We are however seeing a recovery in the US. We’re expecting a 50 per cent increase in GDP in these emerging markets, so we’re heading to where the growth is.”
The group reported £5.5m revenue in Europe over this period, up from £4.1m in 2012.
The group reported a strong performance in China, a 20 per cent increase on a like-for-like basis, with further brand replications. Tarsus’ position in China was further strengthened by the performance of the first event held by the group’s GZ Auto.
In addition, Turkey saw a 13 per cent rise. “Turkey doesn’t just serve Turkey as a country but also serves a wider region, including the Middle East and Baltic regions,” explains Emslie. “Events such as Asansor for the lift industry, go hand in hand with the country’s increase in construction works. Turkey is seeing more refurbishments and renovations, so we’re picking up on the growth and heading towards where we see the potential revenue.”
Continuing to execute the group’s Quickening the Pace strategy, Tarsus is replicating existing brands by launching shows in new areas. “China’s largest auto aftermarket exhibition is being launched in Beijing, Jakarta and Istanbul in 2014,” said Emslie. “Equally, we’re launching our Turkey houseware exhibition in Jakarta and Dubai.”
Emslie said even though the first half of the year is the smaller half, contributing 15 per cent towards the overall year figures, “it has been a very cash generative year so far, where we have more than doubled profits compared to where we were last year,” said Emslie.
The group said revenues for the first half are eight per cent ahead on a like-for-like basis, with revenues totalling £26m, up from £19.2m in 2012.
Forward bookings across the portfolio are strong and are currently 12 per cent ahead of 2012 on a like-for-like basis adjusting for acquisitions and biennial events. Management remains confident of its 2013 results.
“We have good visibility for the full year, especially from our two largest events – the Dubai Airshow and Labelexpo Europe – and we are confident of a positive full year outcome,” said Emslie.
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