ITE Group PLC Trading Update (1388V)
January 26 2017 - 1:00AM
UK Regulatory
TIDMITE
RNS Number : 1388V
ITE Group PLC
26 January 2017
26 January 2017
ITE Group plc
("ITE" or the "Group")
Trading Update
ITE Group plc is today publishing a Trading Update for the
period from 1 October 2016 to the date of this announcement,
incorporating the Group's first quarter trading period from 1
October 2016 to 31 December 2016. This coincides with the Group's
Annual General Meeting which is being held at 12 noon today.
First Quarter Trading Update
The Group's trading in this quarter was in line with management
expectations.
Revenue for the three month period to 31 December 2016 was
GBP35.0m (three months to 31 December 2015: GBP34.8m). On a
like-for-like basis revenues for the quarter are, as expected, 4%
lower than the comparative period reflecting continued weakness in
Central Asia and the impact of lower oil prices on our Africa Oil
Week event.
Financial Position
The Group's balance sheet remains sound and we continue to see
strong operational cash flows. Following the recent acquisition of
a 70% stake in Shanghai Gehua, net debt stood at cGBP61m on 20
January 2017.
Outlook and Strategy Review Update
Trading conditions in a number of the regions in which we
operate continue to be challenging. Further terrorist acts in
Turkey are having a continued negative impact on international
bookings on events in the region. Due to the uncertainty caused by
the demonetisation of certain Indian banknotes, bookings on events
in India have been negatively impacted, particularly in the real
estate, fashion & accessories and construction sectors. As a
result, it is possible that a number of smaller events in India
will be postponed or cancelled.
Whilst recent forecasts for improved economic growth in some of
our core markets, and recent exchange rate movements, will be
favourable if sustained, as previously flagged, given the high
visibility of our business model with events booked in advance,
there will be a lag before these benefits are reflected in our
reporting results.
At 20 January 2017, Group revenues booked for FY 2017 were GBP99
million (at current exchange rates) representing circa 72% of
market expectations for the full year. On a like-for-like basis
these revenues are circa 2% ahead of this time last year.
The review of the business and strategy, announced in November
2016, is well underway and on track.
The Board is comfortable with the market revenue expectations
for the full year, and has taken the view that in order to improve
sales performance next year and beyond, a number of new sales and
marketing initiatives will be accelerated in advance of the review
announcement. The cost of these planned investments will be
partially recognised in the current financial year, resulting in a
profit slightly below market expectations for the full year.
The results of the review will be announced alongside the
Group's Interim Results for the six months ending 31 March 2017 on
Tuesday 16 May 2017.
Where used, like-for-like measures are stated on a constant
currency basis adjusted to exclude acquisitions impacting results
for the first time, event timing differences and biennial
events.
Enquiries:
Mark Shashoua, Chief Executive Officer, ITE Group plc Tel: 020 7596 5000
Andrew Beach, Chief Financial Officer, ITE Group plc Tel: 020 7596 5000
Charles Palmer/Emma Appleton, FTI Consulting Tel: 020 3727 1000
Nick Westlake/Toby Adcock, Numis Securities Ltd Tel: 020 7260 1000
This Interim Management Statement is prepared for and addressed
only to the Group's shareholders as a whole and to no other person.
The Group, its directors, employees, agents or advisers do not
accept or assume responsibility to any other person to whom this
Interim Management Statement is shown or into whose hands it may
come and any such responsibility or liability is expressly
disclaimed. Statements contained in this Interim Management
Statement are based on the knowledge and information available to
the Group's Directors at the date it was prepared and therefore the
facts stated and views expressed may change after that date. Other
than the information contained in this Interim Management Statement
there have been no material events or transactions in the period
from 31 December 2016 to 26 January 2017. By their nature, the
statements concerning the risks and uncertainties facing the Group
in this Interim Management Statement involve uncertainty since
future events and circumstances can cause results and developments
to differ materially from those anticipated. To the extent that
this Interim Management Statement contains any statement dealing
with any time after the date of its preparation such statement is
merely predictive and speculative as it relates to events and
circumstances which are yet to occur. The Group undertakes no
obligation to update these forward-looking statements.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
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