ITE Group PLC Trading Update (2789E)

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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                     [phone] 
 FTI Consulting 
  Charles Palmer / Harry Staight     [phone] 
 

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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July 03, 2019 02:00 ET (06:00 GMT)