International events group ITE Group plc has issued an update regarding the year ended 30 September before its close period and ahead of its preliminary results announcement on 29 November.
ITE’s performance in Q4 was in line with management expectations, with revenues in the three-month period to 30 September circa £23m, identical to 2015.
Revenues are down 8% as ITE expected as a result of the impact of difficult economic conditions in core markets.
While ITE has benefited from Sterling weakness since the EU Referendum result on the translation of overseas revenues, the attempted coup in Turkey in July negatively impacted September events in the region.
The latest quarter also included World Food Moscow, ITE’s leading food exhibition, and while the challenging conditions in Moscow resulted in a further decline in space sales to 20,200sqm from 22,600sqm in 2015.
Management expectations for the full year remain unchanged with revenues for FY 2016 expected to be circa £133m, slightly down from 2015 (£136m).
ITE remains in a sound financial position, operating within its £93m facility with net debt of circa £60m as at 30 September 2016, compared with £55m in 2015, after spending £18m on acquisitions in the financial year.
ITE’s has stated that they will focus on organic trading and integrating its recent acquisitions. The Group agreed terms to acquire a 70% stake in a small Shanghai- based business and the completion of this transaction awaits Chinese government approval which is anticipated during October.
Challenging conditions together with the recent attempted coup in Turkey has significantly affected international travel to the region and bookings on Turkish events. However the improvement in relations between Russia and Turkey is a positive development but positive benefits are not expected to materialise until 2018.
As at 30 September 2016, ITE has booked £58m of revenue for the 2017 financial year (2016: £48m), which is 1% behind 2015 on a like-for-like basis.