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Share Name | Share Symbol | Market | Type |
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Essex Property Trust Inc | TG:EXP | Tradegate | Ordinary Share |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
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2.40 | 0.88% | 274.30 | 270.30 | 272.90 | 274.30 | 274.30 | 274.30 | 1 | 13:54:59 |
RNS Number:3206J Expomedia Group PLC 28 March 2003 Expomedia Group Plc Results for the year ended 31 December 2002 Expomedia Group Plc ("Expomedia), the international exhibition and events company announces its preliminary results for the year ended 31 December 2002 Highlights First full year of operations in Warsaw and acquisition of remaining 33.3% interest in Warsaw International Expocentre Restructuring and implementation of low-cost business model at International Katowice Fair 30 year lease agreement signed for Moscow International Expocentre 20 year lease agreement signed for Amsterdam International Expocentre Acquisition of 51% interest in Mash Media Group Ltd (UK) Acquisition of 51% interest in International Exhibitions and Conferences Sarl (IEC) (Morocco) Strategic agreements signed covering an initial 32 event launches New exhibition company launched in Amsterdam with joint venture agreement with N.V.Holdingmaatschappij De Telegraaf New exhibition company launched in Moscow with agreements for exhibitions and conferences with Informa Group plc, Montgomery International, Penton Media Europe Ltd, IIR Exhibitions, Independent Media and Heighway Events Launch of new organising company in Budapest including agreements with Axel Springer Budapest Publishing Ltd and Zold Ujsag Rt, Hungary Roger Shashoua, Chairman of Expomedia commented: "Our first full year of operations was a year of considerable progress for the Group. Our objective of becoming a major force in the international exhibitions industry is rapidly being achieved. This is through a combination of well positioned entries into several new territories for our cost effective exhibition venues and acceptance by the exhibition industry through the successful completion of strategic agreements covering an initial 32 event launches." For further information: Sonya Gillespie 020 7376 3300 Mark Shashoua 020 7376 3300 Darra Comyn 020 7376 3300 Results Turnover for the year was Euro 7.0 million (2001: Euro 6.6 million), an increase of 7% and gross profit for the year was Euro 3.5million up (2001: Euro 2.8 million). The increase in gross profit is mainly due to the increased contribution from our Warsaw centre, which operates at a 60% gross margin. The loss before interest, taxation, depreciation and amortisation was Euro 1.1 million (2001: Euro 1.1 million) and the loss after tax was Euro 2.6 million (2001: Euro 2.2 million). Deducting expansion costs of Euro 957,000 relating to future developments in The Netherlands, Germany, Russia, Serbia-Montenegro and Hungary, the loss before interest, taxation, depreciation and amortisation was only Euro100,000. In 2003 we will continue to fund expansion in all of these territories and The Netherlands, Serbia-Montenegro, Russia and Hungary are expected to contribute to Group revenues towards the end of the year. Progress and strategy We have made significant progress in developing our exhibition centres businesses, signing cost effective leases for two purpose built multi-functional centres, one in Moscow and one in Amsterdam, thus doubling the number of venues to be managed by the Company in 2004. In addition we hope to finalise lease arrangements in other locations including Belgrade, Frankfurt and Koln in 2003 for completion in 2005. Other locations where we are also actively negotiating include Spain, Hungary, Czech Republic, Italy, India and China. Key to the expansion of our centres is our organising arm CEE Exhibitions, which is continuing to offer its local services to international organisers and media groups. By giving organisers the ability to clone their events in each territory using the local offices of CEE Exhibitions, we are able to facilitate their entry into new markets and as part of this strategy, the Group has entered into strategic agreements during the year covering the launch of an initial 32 events. In addition to these agreements CEE Exhibitions will continue to develop other events independently of partner agreements in niche sectors for each market. We therefore expect that during 2003 we will organise over 70 events, increasing in 2004 to over 100 events. During the year we acquired a 51% interest in Mash Media Group Ltd, a UK publisher of exhibition industry related titles. We are currently in the process of replicating some of these titles into other markets together with the launch of new titles in the UK. During the year we also acquired a 51% interest in IEC International Exhibitions and Conferences SARL (IEC), an exhibition organiser in Morocco, whose plans for 2003 include a range of new titles in Morocco and expansion into other countries in Africa using Morocco's low cost base. Management The Group has continued to attract experienced professionals with extensive knowledge of the exhibition industry and the markets in which we operate. Their entrepreneurial spirit and commitment to long term success further strengthens the management base and reaffirms my conviction that we have assembled the best team to ensure that the Group achieves its goals. Prospects The Board believes that your Group has a promising future, as our vision is revolutionising the exhibitions industry with the right cost-effective facilities and events in the right markets. We expect our rate of development to continue in the next year and look forward to announcing important developments in the coming months. With the continued support of our shareholder base, the board believes that Expomedia Group is rapidly becoming a major force in the international exhibitions and events market. Central and Eastern Europe and Russia We are expanding rapidly across the key growth markets of Central and Eastern Europe and Russia which are currently under-served in terms of venues and specialist branded exhibitions. European Union accession will benefit the region enormously and the Group is ideally placed to benefit from this. Operating results 2002 was the first full year of operations for our businesses in Warsaw and while conditions in the Polish market are difficult we are extremely satisfied with the progress of our Warsaw based activities. During the year we announced the acquisition of businesses in Warsaw and the launch of new operations in Russia and Hungary. These new operations complement our existing Polish activities and with further developments to come, including Serbia-Montenegro, the Group can look forward with confidence to a major role in the exhibition industry in the region. Poland During 2002 our flagship exhibition centre in Warsaw hosted 36 exhibitions, 15 conferences and 38 other special events and banquets. Considering the poor economic climate in Poland this was an outstanding result and one on which we expect to build in 2003. Our exhibition organising Company in Warsaw, CEE Miedzynarodowe Targi Warszawskie Sp. Z o.o. (CEE MTW), also had its first full year of operations and successfully organised 13 events including the Warsaw Motor Show which grew by 76% compared to the 2001 event. CEE MTW also took over the organisation of Meeting Premiera, the largest stationery show in Eastern Europe, which grew by 25%, compared to the 2001 event. In 2003 we expect to organise 26 events, an increase of 100% over 2002. These events include a water sports and boat show which we have taken over from the Polish Water Sports Association. In 2003 we expect that CEE MTW will become one of the largest exhibition organisers in Warsaw, a considerable achievement after only two years of operation. International Katowice Fair organised 28 events in its own dedicated venue in 2002. This excluded two major biennial events, The Katowice Fair, a mining exhibition, and Interwelding, both of which will be held in 2003. The company's operation was restructured during the year with significant staff reductions and management changes, the object of which is to increase its operating margins and to apply the low cost model that we have implemented in Warsaw. The operations in Katowice were acquired in 2001 from the management at the time. We believe that Katowice International Fair is now able to withstand the difficult environment facing Polish businesses and will be well prepared for the expected benefits from Poland's entry into the European Union in 2004. Russia In April we announced that we had reached agreement to lease a 20,000m(2) multi-functional exhibition venue in the centre of Moscow. The centre will be purpose built to the specifications of Expomedia. The final planning process is currently progressing and we expect that construction will commence in summer 2003 and expect it to be completed within nine months of commencement. We have also established our local exhibition organising company, OOO Tsentralnye Yevropeyskiy Vistavskiy (CEV), in Moscow. CEV provides sales support to exhibition and conference organisers and media groups looking to enter into the Russian market through a series of long-term joint ventures, management contracts and licenses. CEV will also look to launch individual niche shows. We are extremely pleased with the range and number of titles that we have secured in such a short space of time. Agreements have been signed with leading organisers including Informa Group Plc, Montgomery International Ltd, Penton Media Europe Ltd, Nurnberg Messe GmbH and IIR Exhibitions Ltd, which has resulted in four launches for 2003 with a further 20 anticipated for 2004. We have also signed a conference joint venture agreement with Informa Group Plc, one of the largest conference organisers in the world with over 3,000 titles worldwide. Through this we expect to replicate a number of their conferences in the Russian market, based on a successful model that they have operated across Western Europe. This rapid roll-out of new events, partnerships and agreements underlines the strength of our business model. With access to internationally recognised consumer and business-to-business brands we are confident of the success of our Moscow exhibition business which we anticipate will further enhance the utilisation of our exhibition centre in Moscow. Hungary At the end of 2002 we established an exhibition and conference organising operation in Budapest, Budapest Nemzetkozi Rendezveny es Kiallitasszervezo Kft (BNR). We are pleased to have already signed two agreements, one with Axel Springer Budapest Publishing Ltd for the Budapest Home Show and one a Hungarian publisher Zold Ujsag Rt to launch a series of conferences. We plan to organise two exhibitions in 2003 expanding to six in 2004. A rental and marketing agreement was also signed with the newly refurbished Budapest Arena, which reopened in March 2003. Serbia-Montenegro In the near future we expect to announce an agreement for a purpose built 5,000m (2) venue in the centre of Belgrade. In addition we will be launching a series of exhibitions in Belgrade, the first of which will take place in the second half of 2003, with a further five planned for 2004. We are also looking at additional opportunities in Hungary as well as Croatia, Czech Republic and other locations across Russia. Western Europe In Western Europe we are planning smaller centres ranging from 4,000m(2) to 6,000m(2) in central city locations. These centres are ideal for smaller exhibitions, conferences and events. The Netherlands In April we announced that we had agreed to lease a 6,000m(2) multi-functional conference and exhibition centre in Amsterdam. The centre will be purpose built to our specification and is expected to be completed at the end of 2004. During the year we also announced a joint venture with N.V. Holdingmaatschappij De Telegraaf, a major media group in The Netherlands to launch a series of consumer exhibitions backed up by their extensive range of newspapers and magazines and supported by their associated television companies. The joint venture has so far launched three exhibitions for the second half of 2003 covering Fashion and Beauty, Food and Drink and Country Living. A further six new events are planned for 2004. In addition we licensed an existing event, Call Center Expo Europe, from CMP Europe Ltd, which will be held for the second time in October this year. We are currently finalising arrangements for other events and joint ventures in the Dutch market. Germany In Germany we are pursuing opportunities for new venues in Frankfurt, Koln and Dusseldorf, and pending successful completion of those centres we will also look at other major German cities. We have existing associations with exhibition organisers, which will form the basis of our German organising business. We are also looking at additional opportunities in Spain and Italy. Rest of the World Morocco In June 2002 we acquired a 51% interest in exhibition organiser International Exhibitions and Conferences SARL (IEC), based in Casablanca, Morocco. In 2002 IEC organised four events in Casablanca. We are currently expanding these themes into other African territories and have recently announced the launch of oil and gas and mining exhibitions and conferences in Senegal. We are also looking at additional opportunities in India and China. Publishing In June we announced that we had acquired a 51% interest in Mash Media Group Ltd, which owns a portfolio of publications produced in the UK, aimed at the exhibition industry. In addition we subsequently launched a further title ' Exhibiting', targeted at marketing professionals who participate in exhibitions, which had a positive contribution in its first month of launching. In the first quarter of 2003 Mash Media have launched two additional publications aimed at the conference organising industry 'Conference News' and 'Conference Handbook' and have enhanced an existing product, LUKE, to become a monthly publication. Our goal is to clone these titles in many of the markets where we have operations, thereby increasing our offering to each market. We are launching the first of these titles in Russia in June 2003. Summary The management believes that our first full year of operations as a public company has been successful in achieving our goal of creating the necessary foundations to enable the Group to source and establish a continuous stream of branded exhibitions and conference titles. We have also successfully created the necessary sales organisations in nine cities to launch these titles, which will be held in our expanding chain of venues. We are confident that our expansion will continue at its current rate for the next two to three years despite the present unsettled market conditions and that your Group is in an ideal position to realise its full potential. Financial review In 2002 the Group significantly strengthened its balance sheet with a substantial increase in net assets and a significant reduction in gearing. Expansion has been funded by the Group's own resources and through the issue of new Ordinary Shares to existing and new shareholders. During 2003 we expect to continue our expansion and where necessary this will continue to be funded from existing resources, partnerships and other external sources. Funding During 2002 the Group raised a total of Euro7.0 million after expenses through the issue of new Ordinary Shares. These funds were utilised in the expansion of the activities of the Group and in a number of acquisitions, most notably the acquisition of the remaining shares in Warsaw International Expocentre Sp. Z o.o. in February 2002. In addition, in February 2003 we announced that we intended to place 1.7 million shares with Informa Group Plc to raise Euro 3.0 million after expenses. Treasury policy The Group is exposed to movements in foreign currencies for bank debt, the translation of net assets and trading transactions. Many of the Group's transactions are denominated in non-Euro currencies. It is not the Group's policy to use derivative instruments to hedge foreign currency transactions. To manage currency fluctuations wherever possible the Group uses Euros or US Dollars to denominate sales contracts. This reduces the risk associated with operating in countries where the local currency is subject to volatile movements. Taxation The tax charge arises from the profits of International Katowice Fair in Poland where the corporation tax rate is 28%. The Group has losses available which are expected to be utilised against future trading profits. Current liquidity At 31 December 2002 the Group's net debt was Euro3.7 million compared with a net debt of Euro14.4 million at the end of 2001 with gearing at 15% (2001: 110%). This substantial reduction is due to the exercise of rights under a Share Exchange Agreement by ABN Amro Danube Ventures BV under which they converted an equity interest in shares in our subsidiary Expocentres Eastern Europe Ltd into Ordinary Shares in the Company. Due to conditions attaching to this equity interest, it was treated as a Euro10.4 million loan in the 2001 financial statements. ABN Amro Danube Ventures BV currently owns 6.5 million shares in the Company. During the year we also made scheduled repayment of borrowings in Warsaw and Katowice relating to the construction of the exhibition centres in those cities. The only bank borrowing outstanding at 31 December 2002 relates to the Warsaw International Expocentre, where the loan balance at that date was US$4.5 million. This loan is being repaid over the next five years. Balance sheet The Group's net assets at the end of 2002 were Euro24.0 million (2001: Euro13.0 million). The assets of the Group are largely made up of freehold and long leasehold land and buildings with a carrying value of Euro24.0 million. Net goodwill has increased to Euro3.4 million (2001: Euro1.7 million) following the acquisition of interests in Mash Media Group, IEC and the remaining 33.3% interest in Warsaw International Expocentre Sp. Z o.o. Because the Group has substantial assets in Poland changes in the value of the Polish Zloty against the Euro cause changes in the value of these assets when translated into Euros. During the year the revaluation of the Euro caused a net recognised decrease in the value of these assets of Euro2.3 million, as set out in the statement of total recognised gains and losses. Consolidated profit and loss account Year ended Year ended 31 December 31 December 2001 2002 Restated Euro'000 Euro'000 Turnover Continuing operations 6,181 6,578 Acquisitions 851 - 7,032 6,578 Cost of sales (3,521) (3,751) Gross profit 3,511 2,827 Administrative expenses Expansion costs (957) (124) Other administrative expenses (4,797) (4,595) Administrative expenses (5,754) (4,719) Operating profit/(loss) Continuing operations (2,257) (1,892) Acquisitions 14 - Operating loss (2,243) (1,892) Interest receivable and similar income 44 299 Interest payable and similar charges (374) (294) Loss on ordinary activities before taxation (2,573) (1,887) Tax on loss on ordinary activities (47) (317) Loss on ordinary activities after taxation (2,620) (2,204) Minority interests 214 (508) Retained loss for the period transferred to reserves (2,406) (2,712) Basic loss per share (Euro) (0.07) (0.55) Consolidated balance sheet 31 December 31 December 2001 2002 Restated Euro'000 Euro'000 Euro'000 Euro'000 Fixed assets Intangible assets Goodwill 4,235 2,544 Negative goodwill (813) (843) 3,422 1,701 Exhibition and publication titles 746 - 4,168 1,701 Tangible assets 26,301 29,345 30,469 31,046 Current assets Stocks 12 29 Debtors 2,125 1,140 Cash at bank and in hand 506 3,143 2,643 4,312 Creditors: amounts falling due (4,437) (5,973) within one year Net current liabilities (1,794) (1,661) Total assets less current liabilities 28,675 29,385 Creditors: amounts falling due after (3,497) (16,175) more than one year Provision for liabilities and charges (1,187) (165) Net assets 23,991 13,045 Capital and reserves Called up share capital 3,017 1,777 Share premium account 18,774 2,631 Other reserves 5,998 5,998 Profit and loss account (7,128) (2,448) Equity shareholders' funds 20,661 7,958 Minority interests - equity 3,330 5,087 23,991 13,045 Consolidated cash flow statement Year ended Year ended 31 December 31 December 2001 2002 Restated Euro'000 Euro'000 Net cash outflow from operating activities (1,378) (2,555) Returns on investments and servicing of finance Interest received 36 67 Interest paid (348) (426) Realised foreign exchange (loss)/gain (18) 232 Net cash outflow from investments and servicing of finance (330) (127) Taxation Tax paid (115) (327) Capital expenditure Payments to acquire exhibition and publication titles (173) - Payments to acquire tangible fixed assets (1,750) (3,597) Receipts from sale of fixed assets 100 - Net cash outflow from investing activities (1,823) (3,597) Acquisitions and disposals Purchase of subsidiary undertakings (2,837) (5,421) Net cash acquired with subsidiaries 18 40 Net cash outflow from acquisitions and disposals (2,819) (5,381) Cash outflow before financing (6,465) (11,987) Financing New shares issued 7,236 4,485 Expenses paid in connection with share issues (1,355) (445) Decrease in loans from related undertakings (570) (1,707) New long term loan - 10,393 Repayment of short term borrowings (52) (558) Reduction in long term loan (1,072) (1,684) Net cash inflow from financing 4,187 10,484 Decrease in cash (2,278) (1,503) Change in accounting policy The accounts for the year ended 31 December 2001 included a provision for deferred tax of Euro1,265,000 relating to the revaluation of certain land and buildings on the acquisition of Warsaw International Expocentre Sp. zo.o (WIEC). The group has since adopted FRS 19 ' Accounting for taxation' which does not allow a provision for deferred tax on revalued assets where there is no binding commitment of sale. As a result the provision is no longer recognised and the comparatives are restated. The effect of the adjustment on the comparative figures is the creation of negative goodwill on the acquisition of WIEC of Euro843,000 and subsequent increase in minority interest to Euro5,087,000. The adjustment had no effect on the comparative profit and loss account or statement of total recognised gains and losses. During the year the group revised the basis of allocation of certain expenditure between Cost of sales and Administrative expenses in a subsidiary undertaking. The comparatives have been restated on a consistent basis resulting in a reclassification of Euro905,000 from Cost of sales to Administrative expenses. The comparatives in the cashflow statement have been restated as a result of a repositioning of expenditure of Euro1.1 million, associated with previous fundraising, from working capital movements to financing. Reconciliation of operating loss to cash outflow from operating activities Year ended Year ended 31 December 2002 31 December 2001 Euro'000 Euro'000 Operating loss (2,243) (1,892) Depreciation of tangible assets 847 715 Amortisation of goodwill 204 101 Loss on disposal of tangible assets 27 - Decrease/(increase) in stocks 15 (3) (Increase)/decrease in debtors (862) 152 (Decrease)/increase in creditors 634 (1,628) Net cash outflow from operating activities (1,378) (2,555) Loss per share Loss per share has been calculated on the basis of the loss for the year of Euro2,406,000 (2001: Euro2,712,000) and on the weighted average number of ordinary shares in issue. The weighted average number of shares used are: Year ended Year ended 31 December 2002 31 December 2001 No No Basic 35,213,096 4,970,104 Share options 2,950,355 - Conversion under ABN Amro option agreement - 197,423 Diluted 38,163,451 5,167,527 In accordance with FRS 14 the diluted loss per share for the year ended 31 December 2002 is equivalent to the basic loss per share as any conversion of options would reduce the net loss per share. The financial information set out above does not constitute the Group's statutory accounts for the year ended 31 December 2002. The financial information for 2002 is derived from the audited statutory accounts for 2002 which were approved by the Board of Directors on 28 March 2003 and will be delivered to the Registrar of Companies following the Company's Annual General Meeting. Copies of the statutory accounts will be posted to shareholders on 16 April 2003. Additional copies will be available from the registered office of Expomedia Group Plc, Verney House, 1B Hollywood Road, London SW10 9HS. The financial information has been prepared in accordance with accounting standards generally accepted in the United Kingdom, on a going concern basis under the historical cost accounting method as modified by revaluation of certain categories of tangible fixed assets. This information is provided by RNS The company news service from the London Stock Exchange END FR NKOKPFBKDPNB
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