6th Jan 2010 07:00
6 January 2010
Tarsus Group plc
Trading Update
Tarsus Group plc ('Tarsus' or 'the Group'), the international business-to-business media group, expects full year 2009 adjusted pre-tax profits to be in line with the Board's expectations.
Our strategy has been to continue to increase the Group's focus on its emerging markets division. These operations contributed approximately 33% of Group revenues in 2009, with management today announcing that it expects this proportion to increase to around 50% by 2013.
Group like-for-like revenue growth for the year ended 31 December 2009 has seen an increase of approximately 11% (1% excluding any benefit from currency movements). Like-for-like exhibition volumes (net square metres sold) were slightly up and encouragingly, total attendances were up 7% - ahead of our expectations.
Recent Trading
Trading since our last Interim Management Statement (IMS) issued on 19 November is set out below.
In summary, the emerging markets continued to perform well, while trading in Europe has remained challenging. We are also pleased to see early signs of recovery in the US market.
Emerging Markets
The second edition of the Dubai Airshow under our ownership took place in November and delivered revenues 19% ahead of the equivalent event in 2007. Attendance at this business-to-business exhibition, the Group's largest, was up an exceptional 18%. Re-bookings for the 2011 event are substantially ahead of the previous cycle.
Our strategy of increased focus on emerging markets was validated by the outstanding performance of Labelexpo Asia, with revenues up 46% and attendance up 19%. In volume terms, Labelexpo Asia is now our sixth largest exhibition.
We are continuing to build and deepen our Chinese business and have now set up a subsidiary company - a wholly owned foreign enterprise (WOFE) - in Shanghai.
Europe
The French business has performed broadly in line with our reduced expectations at the interim stage with full year revenues declining 12% compared with 2008. Visitor attendance was up approximately 3%.
US
Against a difficult economic background our Medical division saw total revenues fall 7% in 2009 primarily reflecting a change in the mix towards higher margin education and training streams. Encouragingly, revenues for the Las Vegas event in December were unchanged on 2008.
Outlook for 2010
Within each two-year cycle, odd years are by far the larger in profit terms for the Group as they contain the Dubai Airshow, as well as both Labelexpo Europe and Labelexpo Asia, replaced in even years by Labelexpo Americas.
The Group's large events have continued to perform extremely well with smaller products, in line with the rest of the industry, being impacted by difficult market conditions.
There are two significant events in the first quarter of 2010 - the Off-Price Show in Las Vegas where current indications are that the exhibition will produce revenues comfortably ahead of the equivalent event in 2009; and the Mod'amont fashion accessories exhibition in Paris which is tracking a little behind where it was at a similar stage last year.
Bookings for the small Dubai exhibitions scheduled for the first quarter of 2010 are tracking slightly ahead of their previous editions.
During the last few years the Group's management has been focused on developing a portfolio of events that is diverse by both industry and geography in order to ensure that Tarsus is resilient throughout the economic cycle. This strategy, combined with a focus on market-leading events with an increasing bias towards emerging markets, leaves the Group well positioned as economic growth picks up.
Tarsus Group plc:
Douglas Emslie, Group Managing Director 020 8846 2700
Ashley Milton, Group Finance Director 020 8846 2700
Media:
Madano Partnership
Matthew Moth 020 7593 4000
Investors/Analysts:
IRfocus
Neville Harris 020 7593 4015
Scott Harris
Stephen Scott, Jeremy Wiseman 020 7653 0030
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