19th May 2014 08:08
LONDON (Alliance News) - Exhibitions organiser ITE Group PLC Monday reported a jump in pretax profit for the first half of its financial year, as revenue rose and it cut costs, and it said it was still confident about its full-year outcome despite the political crisis between Russia and Ukraine and forecasts for slowing growth in the Russian economy.
The company, which runs events in countries including Russia, Ukraine, Kazakhstan, Uzbekistan, Turkey and the UK, reported a pretax profit of GBP12.2 million for the six months to March 31, up from GBP2.6 million a year earlier, as revenue grew to GBP71.2 million, from GBP69.4 million.
Pretax profit excluding items including impairment of goodwill, profits or losses on disposals and options charges, rose to GBP18.2 million, from GBP11.1 million.
"ITE has delivered a strong performance over the first half of the year with revenue growth in the Group's main markets allied to a stronger biennial pattern in the first half of the year. Our recent acquisition of Beauty Eurasia in Turkey and a 50% investment stake in the Chinese Chinacoat/Surface Finishing exhibition represents more progress in achieving the group's strategic objectives," Chief Executive Russell Taylor said in a statement.
The company said organic growth contributed GBP2.1 million to its pre-items profit, while its investment in Sinostar contributed GBP2.6 million.
It bought a 50% stake in Sinostar, which runs the Chinacoat/Surface Finishing China exhibitions, last November for GBP34 million in cash.
April is the company's largest trading month. ITE said the Mosbuild event delivered a "solid performance", but in common with other construction businesses in Russia, reported lower volumes than for last year's comparable event. Other big events in April reported a mix of performances with the Moscow International Protection & Security growing but TransRussia impacted by a slowdown in one sector, it added.
It said it had booked revenue for the current financial year of GBP158 million as of May 16, down from GBP174 million a year earlier, mainly due to currency moves. It said bookings would have been up 5% at constant currencies, having previously warned of a hit from sterling's strength against the Russian Ruble, Turkish Lira and the Kazakh Tenge.
"Looking forward, we continue to seek opportunities to expand the business with investments that are consistent with our strategy of building market leading positions in higher growth markets. The group is in a strong financial position and operates a resilient business model. With good visibility on current year bookings, the board has confidence in the full year outcome," Taylor said in the statement.
The company increased its interim dividend 9% to 2.5 pence, from 2.3p.
ITE Group shares were up 0.5% at 220.2519 pence Monday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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