30th Jan 2008 07:00
ITE Group PLC30 January 2008 30 January 2008 ITE Group plc ("ITE" or the "Group") Interim Management Statement and Board Change ITE Group plc is today publishing its Interim Management Statement relating tothe period from 1 October 2007 to 29 January 2008 and incorporating the Group'sfirst three month trading period from 1 October 2007 to 31 December 2007. Therehave been no material events or transactions in the period from 1 October 2007to 29 January 2008 other than the information contained in this InterimManagement Statement. Trading performance The current financial year has started well with good trading conditions in theGroup's core markets of Russia and the CIS. Revenues in the three month periodto 31 December 2007 were £13.9m, approximately 5% ahead of the comparable figurefor the prior year after adjusting for timing differences. Without adjusting fortiming differences, revenues in the prior year's comparable trading period were£14.2m. The Kazakhstan International Oil and Gas Exhibition was the only one of theGroup's ten largest contributors to take place during the three month tradingperiod to 31 December 2007. The exhibition capitalised on the new pavilion spaceat Atakent resulting in a 16% increase in square metres sold over last year'sevent. The associated conference held with the exhibition delivered similargrowth. Other important events which took place in the first three month tradingperiod of the current financial year were Ingredients Russia, Pharmtech andExpoclean (in Moscow) and Informatica and Public Health (in Kyiv). The net timing difference in revenues between the three month period to 31stDecember 2007 and the comparable three month period for last year relates to theAlgerian Oil and Gas Exhibition, which was a one-off event for ITE that tookplace in November 2006, and the Turkmenistan Oil and Gas conference which tookplace for the first time in November 2007. The Turkmenistan event was asignificant success and ITE hopes to make it an annual event in the future. Board Changes Following an approach from private equity, Bill Dye, Chief Executive, isresigning from the Group with immediate effect. The Nomination Committee willshortly begin a process to replace him and will be meeting both internal andexternal candidates. During this period Russell Taylor, Finance Director, willbecome acting Chief Executive to ensure continuity, supported by ExecutiveDirector Edward Strachan, who manages ITE's operations in Russia and the CIS. Financial position The Group has reached agreement to advance US$2m to Atakent in Kazakhstan inorder that it can develop a new modern exhibition facility in Atyrau and tomodernise some of the older pavilions at its Almaty exhibition facility. It isexpected the work will be completed during 2009. The recent strength of the Euro will have an impact on the Group at the interimand full year stages. If current exchange rates prevail the Group will benefitfrom the stronger Euro in its revenue line, but is expected to record 'mark tomarket' provisions against the financial instruments held as an economic hedgeagainst its Euro transactions at the interim stage. Approximately 70% of theGroup's revenues are Euro denominated, and management expect the benefit to theGroup's revenues of the strong Euro to at least offset the cost of theprovisions over the full financial year. The Group had net cash at 25 January 2008 of approximately £41m. Outlook The outlook for the Group remains positive. As at 25 January 2008 the Group hadbooked £71m of revenue for the current financial year representing approximately70% of market expectations for the full year. The Group's like for like revenuesat this point of the year remain more than 10% ahead of the comparable figure atthe same time last year. The Group's trading prospects in Russia and the CISremain good and the Board is confident that the business is performing in linewith expectations for the full year. Commenting Iain Paterson, Chairman, said: "We are pleased with the performance of the Group, its strong market positionsand the like for like revenue growth which is more than 10% ahead of thecomparable position this time last year. We are disappointed that Bill Dye isleaving, but recognise the potential rewards that private equity may offer - wewish him well. We will shortly begin the process of replacing him. The Group isin good shape and we remain entirely confident that Russell and Edward, whojoined the company in 2003 and 1993 respectively, will continue to implement theBoard's strategy successfully." Enquiries Russell Taylor 020 7596 5000ITE Group plc Charles Palmer/Tim Spratt 020 7831 3113Financial Dynamics This Interim Management Statement is prepared for and addressed only to theGroup's shareholders as a whole and to no other person. The Group, itsdirectors, employees, agents or advisers do not accept or assume responsibilityto any other person to whom this Interim Management Statement is shown or intowhose hands it may come and any such responsibility or liability is expresslydisclaimed. Statements contained in this Interim Management Statement are basedon the knowledge and information available to the Group's Directors at the dateit was prepared and therefore the facts stated and views expressed may changeafter that date. By their nature, the statements concerning the risks anduncertainties facing the Group in this Interim Management Statement involveuncertainty since future events and circumstances can cause results anddevelopments to differ materially from those anticipated. To the extent thatthis Interim Management Statement contains any statement dealing with any timeafter the date of its preparation such statement is merely predictive andspeculative as it relates to events and circumstances which are yet to occur.The Group undertakes no obligation to update these forward-looking statements. - end - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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