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10 July 2018
ITE Group plc
("ITE" or the "Group")
ITE Group plc is today publishing a trading update for the period from 1 April 2018 to the date of this announcement, incorporating the Group's third quarter trading period from 1 April 2018 to 30 June 2018.
During the quarter we announced the acquisition of the Ascential Events business, which is scheduled to complete on 17 July 2018. The acquisition is part funded by a circa £265m rights issue, which is due to complete on 11 July 2018.
The Group's performance in this period was in line with management expectations.
Revenues on a like-for-like basis were 13% ahead of the comparative quarter reflecting strong underlying trading, particularly from our four top ten events that took place in the quarter, all of which delivered double digit revenue growth, including our largest event, Mosbuild. Overall for the quarter revenues were circa £58m (three months to 30 June 2017: £58m) in line with last year, due to the April divestment of TradeLink ITE Sdn. Bhd ("TradeLink"), our Malaysian subsidiary, and adverse currency movements.
Revenues for the nine months to 30 June 2018 were circa £134m (nine months to 30 June 2017 £128m). On a like-for-like basis this reflects an increase of 11%.
TAG programme update
We announced the TAG programme in this quarter a year ago and we continue to progress according to plan. The TAG Programme comprises of three pillars of strategic activity to accelerate growth, namely: creating a scalable platform, managing the portfolio and making product-led acquisitions.
We continue to roll out best practice blueprints and establish the 'ITE way' to increase the scalability of our platform. We have also introduced a global 'follow the sun' IT support model, ensuring that staff around the world can now have their IT needs met at any time, wherever they are in the world.
We continue to actively manage our portfolio and discontinued three non-core events due to take place in the quarter. In April we also completed the disposal of TradeLink, the organiser of Metaltech, the metalworking exhibition, which would have taken place under our ownership in May 2018.
On 15 May 2018 we announced the proposed acquisition of the Ascential Events business, which will add seven market-leading and scalable brand events to our portfolio, two of which are truly global, supporting and accelerating the delivery of ITE's vision. This acquisition is due to complete on the 17 July 2018.
The Group continues to benefit from earlier cash collections following the successful implementation of our onsite rebooking initiative. After continued TAG investment in the period, but with strong operational cash conversion, net debt as at 30 June 2018 was circa £53m (30 June 2017: £54m).
As at 6 July 2018, the Group had booked circa £153m of revenue for the 2018 financial year (30 June 2017: £145m) representing 96% of market expectations for the full year after adjusting for the TradeLink divestment and before including the Ascential Events acquisition. On a like-for-like basis, these bookings are 13% ahead of this time last year and on a volume basis are 3% ahead, largely due to strong trading initiatives put in place last year.
Our core shows are directly benefitting from the investment in content, customer success and lead generation, contributing to higher satisfaction from our customers. The benefits can be seen in strong forward bookings into 2019. As at 6 July 2018 we had a 27% increase in revenue bookings and a 15% increase in volume bookings on a like-for-like basis for the next financial year, providing enhanced revenue visibility.
After adjusting for the divestment of Tradelink, the Board is confident in achieving its full year expectations.
Notes to Editors
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);
- 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).
For further information please contact:
ITE Group plc
Melissa McVeigh, Director of Communications
+44 (0)20 7596 5000
Charles Palmer / Emma Hall / Harry Staight
+44 (0)20 3727 1000
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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