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Interim Results

ITE pre-tax profits up

09 May 2016 07:27

ITE Group posts pre-tax profits opf GBP10.6m for the six months to the end of March - 36% up on a year ago.

The group said it had delivered a creditable set of interim results, against some challenging trading conditions in its core markets.

Revenues of £64 million for the first six months are 13% higher than last year and headline profits before tax of £19 million are 8% better than over the same period last year.

Higher minority interests caused headline fully diluted earnings per share for the first six months to be lower than last year at 5.2p (2015: 6.0p). These results reflect two compensating changes over the same period last year.

The full benefit of acquisitions made in the last financial year, together with the effect of consolidating the results of our former Indian associate business, have helped to increase underlying operating profits by circa £6 million.

As anticipated, these gains were partially offset by the ongoing effect of the current trading environments in the oil and gas dependent economies of Russia and Central Asia, and the effect of their weaker currencies on our results.

The newly acquired businesses making a first time contribution were Africa Oil Week and some of the Breakbulk portfolio that did not take place in the previous financial year. Together with the benefit of consolidating the results of ABEC, these additions have helped to move the Group's business towards a more balanced geographical portfolio. The integration and performance of these new events has been successful and broadly in line with expectations at the time of acquisition. Africa Oil Week was slightly shy of its targets, but Breakbulk was better than expected. We are now working more closely with ABEC's management and are in the process of combining our businesses in India under one management structure. The Group has continued to develop its business where opportunities arise in line with strategy. In January 2016 the Group announced a small bolt-on acquisition of an industrial equipment show in China, Shanghai Ebseek, which has provided a platform for ITE to develop its business in the Shanghai exhibition market. The Group is also well advanced in its plans to acquire a further small and complementary business in Shanghai, which will complete its current pipeline of acquisitions. The Group is now anticipating a period of integration and development for its recent acquisitions.

Chief executive Russell Taylor said: "ITE has delivered a good first half performance showing the benefits of the Group's diversification strategy. The trading environment in Russia and Central Asia continued to be challenging over the first half but the acquired Breakbulk portfolio and Africa Oil Week together with the increased stake in ABEC's Indian events portfolio have supported a good performance from the Group's business in Asia and the Rest of the world. "Looking forward, prospects in Russia are improving and the economy is expected to show growth in 2017. ITE has a sound financial platform with good operating cash flows and the Group is entering the second half of the year with good visibility on current year bookings. Accordingly the Board has confidence in the full year outcome." ITE Group separately announced that it has appointed Mark Shashoua as chief executive officer. He will succeed Russell Taylor who will stand down from the board and as the group's CEO on 1 September, following 13 years at the company. Taylor will work closely with Shashoua to ensure a smooth handover.

Shashoua, has been CEO of i2i Events Ltd, an international high-growth B2B events and trade exhibitions company, part of Ascential Plcm since November 2011.

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