Hyve News

08/11/2019
YUGAGRO 2019 RESULTS: 8% GROWTH IN THE NUMBER OF VISITORS

The opening ceremony was visited by Governor of Krasnodar Territory Veniamin Kondratiev, CEO of Rosagroleasing Pavel Kosov, and other honoured guests.

As he opened the exhibition, Governor of Krasnodar Territory Veniamin Kondratiev noted that over the years that the exhibition had existed, it had grown into a major platform for socialising, business meetings and trading in advanced machinery and equipment. “Today, we have brought together representatives of more than 35 countries, which are top manufacturers and producers from the UK, Italy, Germany, France, Canada, China. We have different approaches to the agricultural business, but a common goal, which is to grow and produce high-quality products, raise the quality of life in rural areas, develop the agricultural industry and our national economies,” said Veniamin Kondratiev.

This year the scale of the exposition has grown significantly featuring more than 710 corporate participants from 35 countries, its total area exceeding 65,000 m2. Companies from Italy, Germany and Turkey were featured as part of the national pavilions, while Chinese enterprises were joined in a collective exposition.

Over the course of four exhibition days 18,760 visitors from 72 Russian regions attended the exhibition, 8% more compared to the previous year.

EuroChem ratified an agreement with the Ministry of Agriculture and Processing Industry of Krasnodar Territory for uninterrupted supplies of mineral fertilisers to local agrarians in 2020 and introduction of state-of-the-art technologies in local agricultural practices.

Leaders of the industry brought an extensive range of brand-new agricultural equipment and products to the exhibition, with many of them first presented ar YUGAGRO.

An extensive range of machinery and equipment for multiple applications was exhibited by Rostselmash. The attention of the visitors was particularly focused on the brand-new RSM 3000 series tractors for energy intensive operations, most efficient in fuel consumption. The 3000 series tractors are a cost-effective option for farms with a tillage area from 2500 ha and greater.

For YUGAGRO, KUHN prepared a premiere presentation of its brand-new model of the #SB1290 high-performance baler equipped with a double knotter for most reliable binding. The integral rotor technology ensures smooth flow regardless of the crop type and condition.

Kverneland Group CIS displayed its products at the exhibition for a second year in a row. “Last year’s exhibition boosted the sales of Kverneland forage machinery in the region. We had successful negotiations with one of the top suppliers of net wraps to fit our balers. Besides, during the several days of the exhibition we sold all items of equipment displayed at the exposition, which has been twice as vast this time as last year. The machinery sold included an absolutely innovative solution, the Kverneland iXtrackT4 trailed sprayer, which is the largest in the series model range currently available in Russia,” commented Odyssey Kiziridis, Sales Director at Kverneland Group CIS.

ROSAGROTRADE traditionally presented both of its existing product portfolio and new products. According to the manufacturer, YUGAGRO helps to expand the customer base. “At the very beginning 15 years ago, we only had 50 partners, now we have more than a thousand. Our important advantage is our in-house production. Since our production is located in the Russian Federation, we can afford discounts for our loyal customers. And in terms of quality our products are not inferior to any foreign alternatives,” said Executive Director Vladimir Panasenko.

Corteva Agriscience displayed at its booth three business lines: Pioneer seeds and inocula, Corteva crop protection agents and Brevant seeds.

On November 20, the company ran a conference for farmers, where it announced the launch of the local production of Pioneer corn and sunflower seeds and the quality standards it applies. The exhibition also featured the LumiGEN next-generation seed treatment, which has been advertised all over the world.

Bayer is a long-standing exhibitor, which a strong market player in Krasnodar Territory. During the days of the exhibition, Bayer’s booth was visited by more than 800 people. “Bayer’s products are well-known in Krasnodar Territory. Therefore, for us being able to maintain one-time communication with multiple customers and partners and be heard at the YUGAGRO is an effective tool for promoting and liaison,” said Viktor Borisenko, Head of Customer Marketing at Bayer.

Schelkovo Agrohim unveiled an extended line of soybean protection herbicides, a unique herbicide with a super long-lasting effect for corn areas, the long-awaited acaricide to protect gardens, to mention but a few. Most products were presented to specialists in innovative formulations.

Agricultural machinery by CLAAS was exhibited at the booth of the manufacturer’s authorised dealer Mirovaya Tekhnika. “All customers, both from Russia and other countries, gather at YUGAGRO. I would like to highlight our range of tractors equipped with an upgraded GPS-based steering system. From now on, all a customer needs is to pick an accuracy value, 15 cm or 5 cm. We can see that our customers are not only interested in hardware, but electronics is of importance as well, such as machine-to-machine interface, and yield mapping. The DataConnect system holds a special place, as it is pioneering technology which ensures direct data exchange between cloud storages regardless of equipment manufacturer,” commented Michael Ritter, CEO of CLAAS Plant.

The YUGAGRO business programme has traditionally been a platform for effective dialogue among agricultural producers, businesses and government, uniting key players to discuss the most pressing and relevant issues of the agro-industrial complex. This year, the main topic of the plenary session was “Agribusiness Protection: Problems and Solutions”. The list of participants in the plenary session included Andrey Korobka, Deputy Governor of Krasnodar Territory; Arkady Zlochevsky, President of the Russian Grain Union; Konstantin Babkin, President of the Rosspetsmash Association, President of the New Commonwealth Industrial Union; Silas Karakotov, Member of the Russian Academy of Sciences, Doctor of Chemistry, CEO of Schelkovo Agrohim; and Pavel Kosov, CEO of Rosagroleasing.

As part of the exhibition, Rosagroleasing organised an event dedicated to the company’s leasing products in 2019.

Additionally, the agenda of YUGAGRO 2019 included a conference on “Organic Agriculture and Biologisation of Farming: Status and Prospects”, a conference of the International Nut Growers Association, a roundtable discussion of the Horticulturists of Kuban, and other business events, an aggregate of over 30 conferences, workshops and roundtable discussions. In total, 1558 delegates took part in the business programme events.

The exhibition is supported by the Government of the Russian Federation, the Federation Council of the Federal Assembly of the Russian Federation, the Ministry of Agriculture of the Russian Federation, the Krasnodar Territory Administration, the Ministry of Agriculture and Processing Industry of Krasnodar Territory, and the Krasnodar Municipality Administration.

Exhibition’s General Partner — Rostselmash

Exhibition’s Strategic Sponsor — CLAAS

Exhibition’s General Sponsor — ROSAGROTRADE.

In 2020, the Expograd Yug Exhibition and Congress Complex in Krasnodar will host the 27th YUGAGRO International Exhibition of Agricultural Machinery, Equipment and Materials for Production and Processing of Crop Products from 24 to 27 November.


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03/07/2019 07:00:00 Q3 trading update in line with management expectations

Revenues on a like-for-like basis are 7% ahead of the comparative quarter reflecting solid underlying trading.

 
ITE Group plc
("ITE" or the "Group")
Trading Update

ITE Group plc is today publishing a trading update for the period from 1 April 2019 to the date of this announcement, incorporating the Group's third quarter trading period from 1 April 2019 to 30 June 2019.

Trading update
The Group's performance in this period was in line with management expectations.

Revenues for the nine months to 30 June 2019 were circa£176m (nine months to 30 June 2018: £134m). On a like-for-like basis this is an increase of 7% ahead of the comparative period reflecting solid underlying trading. Four top 10 events took place in the quarter, which collectively delivered double digit revenue growth. MosBuild in particular delivered strongdouble digit revenue growth for the second year, following TAG investment.

Revenues for the quarter were circa £69m (three months to 30 June 2018: £58m), due mainly to the improvements delivered in our top 10 events, together with the impact of acquisitions.

TAG programme and Ascential events integration
The TAG programme is now in its final year and we are seeing positive momentum due to the scalable platform which has been put in place.

We continue to manage our portfolio actively and discontinued two non-core events in the quarter.

We announced the acquisition of the Ascential Events business in this quarter a year ago. We are pleased to report that the integration is now complete, with associated costs in line with guidance.  In addition to completing the integration, we have also realised annualised synergies of £5m, at the topend of our guidance, and we have rolled out productinvestment plans. We have delivered on the first-year objectives we set out when we announced the acquisition.

Contingent Liability
The Group has now settled its litigation with the landlord of the venue in Siberia, disclosed as a contingent liability in the FY18 and HY19 reports. Settlement has been reached at approximately £1m, including costs, compared to the £20m claim from the landlord.

Financial position
Net debt as at 30 June 2019 was circa £116m after continued TAG investment in the period, the Mining Indaba deferred consideration payment and the Ascential Events integration.

Outlook
As at 28 June 2019, the Group had booked circa £210m of revenue for FY19 (6 July 2018: £153m) representing 98% of current market expectations for the full year. On a like-for-like revenue basis, these bookings are 6% ahead of this time last year, largely due to the performance of events that have received TAG investment, particularly in Russia.

Despite continued macro-economic headwinds in certain end-markets, the benefits of the TAG programme and our higher quality and more balanced portfolio can clearly be seen in strong forward bookings into FY20 (10% ahead on a like-for-like basis). Our core shows have benefitted from the second year of TAG investment in content, customer success and lead generation, contributing to greater customer satisfaction.

The Board is confident in the Group achieving its full year expectations.


Notes to Editors

1. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period.This excludes:
- Biennial events;
- Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
- Launches;
- Cancelled or disposed of events that did not take place under our ownership in the current year;
- Acquired events in the current period; and
- Acquired events in the comparative period that didn't take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
2. Top 10 events – these are defined as the top 10 events by revenue excluding the acquisition of Ascential Events Limited and Mining Indaba.

 
14/05/2019 06:43:54 Interim Results Announcement: TAG continues to drive strong growth

ITE Group today publishes its Interim Results for HY19, with the Transformation and Growth Programme (TAG) continuing to drive strong growth.

ITE Group today publishes its Interim Results for HY19, with the Transformation and Growth Programme (TAG) continuing to drive strong growth.

Financial highlights

  Six months to
31 March 2019
Six months to
31 March 2018
     
Volume sales 354,300 m2 353,300 m2
Revenue £107.8m £75.4m
Headline profit before tax1 £24.5m £16.0m
Profit before tax £1.9m £1.3m
Headline diluted earnings per share2,3 2.3p 2.3p
Diluted earnings per share3 (0.1)p (0.4p)
Interim dividend per share3 0.9p 0.9p
Net debt4 £108.9m £51.2m
 
  • Revenue of £107.8m; growth of 6% on a like-for-like basis5, driven by Transformation and Growth (TAG) initiatives and focus on Core6 events. Excluding Acetech Delhi like-for-like revenue growth was 8% 
  • The five largest recurring shows in the period which have had TAG investment, collectively delivered 14% like-for-like revenue growth
  • Headline profit before tax of £24.5m, growth of 7% on a like-for-like basis, with increased margins
  • Statutory profit before tax of £1.9m after increased M&A-related costs, including amortisation on acquired intangible assets, the loss on disposal of non-core events, transaction costs and integration costs
  • Cash conversion7 over 100%
  • Net debt increased as expected from £51.2m to £108.9m following the Ascential Events and Mining Indaba acquisitions
  • Interim dividend maintained at 0.9p3, in line with policy
  • Forward bookings8 of £200m already contracted for FY19; FY20 forward bookings up 11% on a like-for-like basis

Read full interim results report (PDF)
View Interim Results Presentation (PDF)
Watch Interim Results Webcast

Strategy update
  • TAG programme now in its final year, with a focus on execution
  • The Ascential Events and Mining Indaba integrations are on track
  • Portfolio was further strengthened with the sale of non-core events in Russia and closure of a further 24 less-profitable events
  • Secured multi-year deal with Crocus Expo for Russian events
  • Expect to reach most TAG targets earlier than planned and all targets within planned timeframe
 
Mark Shashoua, CEO of ITE Group plc, commented:

“2019 is all about execution and embedding the people and processes that we have put into place since the inception of our Transformation and Growth programme.

The benefits of the programme are clear, with like-for-like revenue growth of 6% (8% excluding Acetech Delhi), and overall revenues including acquisitions up 43%. Our top five recurring events that received TAG investment during the period, collectively achieved 14% like-for-like revenue growth. Headline profit before tax grew 7% on a like-for-like basis (11% excluding Acetech Delhi). As the quality of our events improve and TAG investment levels out, we have improved our headline operating profit margin, which has increased from 23% to 25%.

The outlook for the remainder of the year is strong, owing to our continued focus on forward bookings. Contracted revenues already stand at 94% of full year consensus and are 6% ahead of this time last year on a like-for-like basis. We have also contracted £58m of revenues for FY20, representing a like-for-like increase of 11% giving us good visibility into next year.

We continue to trade in line with Board expectations for FY19 and looking further ahead, we expect to see the full benefits of the investments we have made into our acquired events from FY20 onwards, and we have a much-improved portfolio of events that is well positioned to deliver further sustainable growth in the years to come.”
 
1. Headline profit before tax is defined as profit before tax and adjusting items, which include amortisation of acquired intangibles, impairment of goodwill, intangible assets and investments, profits or losses arising on disposal of Group undertakings, restructuring costs, transaction and integration costs on completed and pending acquisitions and disposals, tax on income from associates and joint ventures, gains or losses on the revaluation of deferred/contingent consideration and on equity option liabilities over non-controlling interests, and imputed interest charges on discounted equity option liabilities – see note 3 to the condensed consolidated financial statements for details.
2. Headline diluted earnings per share is calculated using profit attributable to shareholders before adjusting items – see notes 3 and 6 to the condensed consolidated financial statements for details.
3. Headline diluted earnings per share, diluted earnings per share and interim dividend per share have all been restated to account for the bonus element of the rights issue that took place in July 2018.
4. Net debt is defined as cash and cash equivalents after deducting bank loans.
5. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period. For clarity, this excludes all
‚Äč-        Biennial events;
-        Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
-        Launches;
-        Cancelled or disposed of events that did not take place under our ownership in the current year;
-        Acquired events in the current period; and
-        Acquired events in the comparative period that didn’t take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
 See ‘Trading highlights and review of operations’ for further detail.
6. Core events are those of strategic importance to our future and include the Group’s largest events, those with the greatest potential for growth and a number of smaller but strategically important events. Following the strategic review, the Group deliberately segmented its business into Core and Non-Core, enabling management to increase its focus on events that present the greatest opportunities whilst reducing distraction from smaller events.
7. Cash conversion is defined as cash generated from operations before net venue utilisation and the cash impact of the adjusting items included in the definition of headline profit before tax, expressed as a percentage of headline profit before tax adjusted for net finance costs and non-cash profits, including foreign exchange gains/losses, depreciation and amortisation.
8. Forward bookings are contracted revenues for the years ending 30 September 2019 and 30 September 2020. These are the bookings as at 10 May 2019, unless otherwise stated. 

 
 
Enquiries:

Mark Shashoua, Chief Executive Officer
Andrew Beach, Chief Financial Officer
Melissa McVeigh, Director of Communications
ITE Group plc 020 3545 9000
 
Charles Palmer / Harry Staight
 
FTI Consulting
 
020 3727 1000
     
Nick Westlake / Matt Lewis Numis 020 7260 1000
 
 
About ITE Group plc
 
ITE Group plc was founded in 1991 and is now one of the world’s leading organisers of international exhibitions and conferences.

ITE Group’s strategic vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic market-share led business to a product-led business that focuses on market-leading events through a centralised operating model, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.

Executive summary

ITE has delivered a strong trading performance as the benefits of the TAG programme initiatives are being realised, resulting in good like-for-like revenue and headline profit before tax growth. Headline operating profit margins have increased to 25% (2018: 23%), as the scalable platform introduced through the TAG programme is supporting the revenue growth. The acquisitions of Ascential Events Limited (“Ascential Events”) and Mining Indaba and the divestment and closure of a number of smaller non-core events in the last 12 months gives us a significantly stronger and more diversified portfolio of events.

Revenues of £107.8m (2018: £75.4m) for the first six months are 6% higher than the same period last year on a like-for-like basis. Excluding Acetech Delhi, one of our larger events that was space constrained due to ongoing venue construction work this year, like-for-like revenue growth was 8%. This was due to improved like-for-like trading (£3.4m), driven by strong performances across several divisions, in particular Russia and Global Brands.

The Group reported a statutory profit of £1.9m for the period (2018: £1.3m), after increased costs associated with the acquisitions and disposals completed in the last 12 months. The reported profit is after including amortisation on acquired intangible assets of £12.0m (2018: £5.8m), the loss on disposal of non-core events of £2.4m (2018: £nil), M&A transaction costs of £1.4m (2018: £0.7m) and integration costs of £3.4m (2018: £nil).

The Group is benefiting from the TAG investment, most noticeably at the larger Core events where investment has been focused. During the period, the Group’s largest recurring events took place in Russia and in the Global Brands division, with both divisions delivering strong performances, achieving like-for-like revenue growth of 10% and 23% respectively, both comfortably ahead of the GDP growth in their respective markets. This was the second year of TAG improvements in Russia and the second consecutive period of like-for-like double-digit revenue growth from the retained Russian business. In Russia, we have also secured an excellent multi-year contract with Crocus Expo, the newest, purpose-built venue in Moscow, for almost the entire portfolio of Moscow events. This ensures the future of our key events in terms of space, dates and price. We are extremely pleased to have been able to achieve this with no large upfront payment which was customary in the past.

This TAG investment has largely benefitted our core shows in Moscow, Istanbul and the Africa Oil Week and Breakbulk events within our Global Brands portfolio. Exhibitor NPS scores at these events are up significantly, on average by 10 points. Core buying groups and revisits, which are key indicators of quality audiences returning throughout the event and staying longer, grew double-digit leading to collective double-digit revenue growth in our top five events that received TAG investment, for the second year in a row.

This has also led to increased levels of rebooking for FY20, contributing to the 11% increase in forward bookings for FY20 compared to this time last year, on a like-for-like basis, of £58m.

We achieved like-for-like revenue growth in the period across all regions, with the exception of the UK and Asia divisions. The three events in the UK division that ran in the current and comparative periods were Moda fashion events. The largest of the three, Moda, is a mid-market event that runs twice a year in Birmingham and has been challenged for some time. It has now been integrated into the fashion portfolio, post the acquisition of Pure from Ascential plc. The integration is progressing well and as a larger fashion portfolio is in a better position to deliver growth in FY20. As expected, there wasn’t enough time to change the trajectory of decline at Spring Fair for 2019, but a restructured management team, plus considerable investment into the event and a complete re-edit is leading to growth in new business. In Asia the decline is attributable to the aforementioned space constraints at the Acetech Delhi event while a new venue is being built, without which the region delivered like-for-like revenue growth.

Like-for-like revenue growth across almost all markets in the period has been achieved despite facing a number of trading headwinds including macro-economic challenges in Turkey, tensions between Ukraine and Russia and Brexit. The macro-economic challenges in Turkey are also having a knock-on effect in some of our other markets that attract overseas exhibitors from Turkey, and as a result we saw a number of cancellations at some of our Russian events, most notably at MITT, our international travel and tourism event.

Our Chinese joint venture Sinostar performed well again, contributing £6.9m to profits (2018: £6.7m).
We have largely completed the integration of the Ascential Events portfolio into the Group and we have merged the teams into the Paddington office. We expect to realise the top end of the forecast annualised synergies and have focused on implementing the investment cases that will drive growth in the acquired events in FY20.

Strategic Update - Delivering transformation and growth

As we enter the final phase of our TAG programme, there is a clear focus on execution, now that we have put the necessary building blocks in place.

Since we announced the TAG programme in May 2017, we have hired a new management team, centralised our operating model and instilled operational rigour at a local level. We have achieved this by recruiting heads of best practice across all our activities, rolling out best practice blueprints, investing in our key shows and making them more content-rich, upskilling and incentivising our sales and marketing teams, as well as investing in new systems to serve our customers better and operate the business more efficiently. We have now created a scalable platform from which we can grow. 

Meanwhile, we have managed our portfolio to focus on those events which are, or have the potential to be, market-leading and that we own 100%. Since the start of TAG, we have more than halved the size of our portfolio, whilst improving the overall quality of events with revenue per event up 220% and still delivering like-for-like revenue and profit growth.

In the first six months of FY19, we have continued to make progress against each of our three pillars of TAG:
  • Create a scalable platform;
  • Actively manage our portfolio; and
  • Make selective product-led acquisitions.

Create a scalable platform

We are now able to take advantage of the significant work completed in the first years of TAG, with regards to creating a scalable platform. Having put in place those building blocks, such as best practice processes, improved systems and highly-motivated event teams, we are now able to execute and realise the benefits of our transformation.

Investing in new systems is an essential part of creating a scalable platform. This year we are building new integrated finance systems, which will give us better transparency and control over global accounting.

Only by continuing to improve customer service and event quality, will we drive customer retention. Last year we introduced a customer success team, whose role it is to help exhibitors market themselves and ensure they meet the right people at our events, thereby increasing their return on investment. So far this year the team has made over 10,000 proactive contacts with our customers. 

We continue to place a huge focus on event content, which attracts the highest quality audience when produced and delivered correctly. The number of key visitors attending those of our shows which have benefitted from TAG investment, has grown 8% year on year.

Finally, our new lead generation process, which has moved us on from individuals sourcing their own leads to a more systematic approach by analysing market sectors, is allowing us to take a more targeted approach for each event. This is having a positive impact on new business for events which have benefitted from TAG investment during the first half of this year.

Actively manage the portfolio

We continue to proactively manage our portfolio, in order to increase focus and investment on the shows which offer the best opportunities for growth.

At the start of the financial year we sold 56 small, regional events in Russia. These events had been yield-driven for many years and the cost to improve and bring them up to an international standard would have diminished profitability. We also closed a further 24 less profitable events, most of which operated in Siberia, and in March we disposed of an additional five events in Azerbaijan. 

As disclosed in note 32 of the last Annual Report, during FY18 a supplier of the Group threatened to make a claim for additional rent of £28.8m in respect of the use of a venue by the Group in 2016 and 2017. The venue is in Novosibirsk, Siberia, which is a non-core market for the Group. The Group closed its business in Siberia during the period. Since the date of the Annual Report, court proceedings have been started and the Group is engaged in litigation with the landlord of the venue. The landlord’s claim is additional rent of £20m (as set out in the claim), whilst the Group is seeking a declaration from the Court that the rent claimed is unreasonable and therefore unenforceable under Russian law. The Group’s lawyers’ advice is that they consider the Group likely to succeed in the litigation. Accordingly, no provision has been made as at 31 March 2019 as management does not expect any economic outflow will arise as a result of the litigation.
 
Our portfolio of events has been materially enhanced following the start of the TAG programme. Overall, we have more than halved our portfolio through closing and disposing of underperforming events, but continue to deliver revenue and profit growth. Since May 2017, average revenues per show have more than trebled, from £0.5m to £1.6m, a key illustration of the success of the TAG programme, together with the impact of recent acquisitions (see Product led acquisitions below).

We will continue to manage our portfolio on an ongoing basis in order to maximise growth.

Product-led acquisitions

The integration of the Ascential business, which we acquired in July 2018, is making good progress. We have put in place an entirely new management structure and organisation design, aligned our reporting periods and accounting policies, as well as HR policies, and moved to be co-located in the same building in Paddington. The final stage is systems integration, which is planned to take place throughout this summer.
 
In October we announced the completion of a further market-leading event into our Global Brands division – that of Mining Indaba. As the world’s largest mining investment conference, dedicated to the capitalisation and development of mining in Africa, this event met all our criteria for selecting product-led acquisitions. It is the must-attend event in the African mining industry, attracting nearly 6,000 industry leaders, investors and government officials from around the world to Cape Town each year.
 
With the focus and investment Mining Indaba will receive as part of our TAG programme, we believe we can accelerate its growth. There are some clear synergies with Africa Oil Week, including sharing some of the same ministries and customers, streamlining their operations, achieving greater purchasing power and offering a more consistent product for both sets of customers. We have merged the two teams and are investing in new content, onsite sales and lead generation at Mining Indaba to drive growth from FY20 onwards.
 
We now have a robust operating platform from which to accelerate growth through selective acquisitions in the future, that can both leverage our platform and further strengthen our portfolio.
 
Outlook

We are now in the final year of the TAG programme and we expect to meet most of our TAG targets earlier than planned and are on track to deliver on all of our targets within the expected timeframe.
 
The Group enters the second half of the year with excellent visibility of revenues having contracted £200m of revenue for the current financial year as at 10 May 2019, representing circa 94% of market expectations for the full year. As a result of our focus on forward bookings, the Group has also already contracted £58m of forward bookings for FY20, representing 26% of consensus revenue. The FY20 forward bookings are up 11% on a like-for-like basis and the improved level of bookings partly reflects the Group’s focused sales initiatives on Core events, in line with its strategy.
 
The results show a second year of strong growth in the core events that have received TAG investment, as well as margin improvement as investment levels off. This too will follow with the newly-acquired acquisitions, which are receiving investments that will drive growth for FY20 onwards.
 
We continue to trade in line with Board expectations for FY19 with a strengthened portfolio of events, which will drive sustainable growth in the future. We firmly believe that in our final year of TAG we have a higher quality, better balanced portfolio that will offer stronger and more sustainable growth.
 
We believe that this model gives us a distinctive competitive edge in our industry, and is allowing us to deliver on our vision to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and return on investment for our customers.
  
Mark Shashoua
Chief Executive Officer

Read full interim results report (PDF)

29/04/2019 10:51:17 Nick Backhouse appointed as a Non-Executive Director

ITE Group plc is pleased to announce the appointment of Nicholas (“Nick”) Backhouse as a Non-Executive Director, effective from 1 May 2019.

ITE Group plc is pleased to announce the appointment of Nicholas (“Nick”) Backhouse as a Non-Executive Director, effective from 1 May 2019. Nick has extensive experience at Board level, including non-executive roles at Guardian Media Group plc, All3Media Limited and Marston’s PLC. He is currently the Senior Independent Non-Executive Director at Hollywood Bowl Group plc and Loungers plc, a Non-Executive Director of Eaton Gate Gaming and a trustee of Chichester Festival Theatre.
 
In his executive career, Nick was the Deputy Chief Executive Officer of the David Lloyd Leisure Group and was previously Group Finance Director of National Car Parks and Chief Financial Officer of the Laurel Pub Company and Freeserve PLC. Prior to that, he was a Board Director of Baring Brothers.
 
Nick is a Fellow of the Institute of Chartered Accountants in England and Wales and has an MA in economics from Cambridge University.
 
Richard Last, Chairman, said:

"On behalf of the Board I would like to welcome Nick Backhouse to the Group. Nick joins us at an extremely exciting time for ITE, as we continue to feel the positive benefits of our Transformation and Growth programme. We are looking forward to working with him and benefitting from the experience and expertise he will bring to the business."
 
Nicholas Backhouse said:

"I am delighted to be joining ITE at this pivotal time in its transformation journey, and I look forward to being a part of its future successes and growth."
03/04/2019 07:00:00 ITE Group publishes H1 Trading Update

ITE Group plc is today publishing a trading update ahead of its interim results for the six months ended 31 March 2019, which will be announced on 14 May 2019.

ITE Group plc is today publishing a trading update ahead of its interim results for the six months ended 31 March 2019, which will be announced on 14 May 2019.

Trading update

The Group’s performance in the period was in line with management expectations.
 
Revenues for the period were up 42% to circa £107m (six months to 31 March 2018: £75m). This is due to the addition of acquired events - seven former Ascential events and Mining Indaba - as well as strong organic performance from core events, including Africa Oil Week and YugAgro.
 
On a like-for-like1 basis, revenues for the six month period were 6% higher than the comparative period. Excluding Acetech Delhi – where we have temporary venue capacity constraints as previously signalled – our like-for-like revenue growth is 8%. The five largest shows in the period which have had TAG investment collectively delivered double-digit revenue growth.
 
Financial position

Net debt as at 31 March 2019 was approximately £114m, an increase of circa £31m since 30 September 2018 (31 March 2018: £51m) as a result of the acquisition of Mining Indaba and planned TAG and Ascential Events integration investment, and is in line with our expectations.
 
TAG programme and Ascential Events integration

The TAG programme - which is in its final year - is on track, and our current focus is on the roll out of the new People systems across the business and the design and build of a new global ERP solution.  
 
Integration of the Ascential Events business is now largely complete and we are confident of realising annualised synergies of £5m, at the upper end of our guidance. The investment plans to drive growth in FY20 are well developed and on track.
 
Managing the portfolio

We continue to actively manage our portfolio, to enable the Group to focus both management time and investment on our key events. In the period we closed 24 small events, which collectively made a small loss.
 
Outlook

Investments into products and operational improvements are driving growth, despite some known headwinds including Brexit and macro-economic issues in Turkey, and their resulting currency impacts.
 
As at 28 March 2019, forward bookings were circa £191m of revenue for FY 2019 (29 March 2018: £137m), representing circa 89% of current market expectations for the full year. On a like-for-like basis, booked revenues are 6% ahead of this time last year, reflecting strong growth from our core events. Looking ahead to FY20, booked revenues are 18% ahead of this time last year.
 
The Board is pleased with the Group's performance to date, and remains positive in achieving full year expectations.
 
Notes
  1. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period. This excludes all:
  • Biennial events;
  • Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
  • Launches;
  • Cancelled or disposed of events that did not take place under our ownership in the current year;
  • Acquired events in the current period; and
  • Acquired events in the comparative period that didn't take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
 
For further information please contact:

ITE Group plc
Melissa McVeigh, Director of Communications
 
 
+44 (0)20 7596 5000
 
FTI Consulting
Charles Palmer/Harry Staight/Chris Birt
 
 
+44 (0)20 3727 1000
 

About ITE Group plc

ITE Group plc was founded in 1991 and is now one of the world’s leading organisers of international exhibitions and conferences.

ITE Group’s strategic vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.
24/01/2019 07:08:07 Q1 trading update in line with expectations

Revenues on a like-for-like basis were 6% ahead of the comparative quarter reflecting strong underlying trading.


ITE Group plc
("ITE" or the "Group")
Trading update

 
ITE Group plc is today publishing a trading update for the period from 1 October 2018 to the date of this announcement, incorporating the Group’s first quarter trading period from 1 October 2018 to 31 December 2018. This coincides with the Group's Annual General Meeting which is being held at 9am today.

First quarter trading update
The Group’s performance in the quarter was in line with management expectations.

Revenues on a like-for-like1 basis were 6% ahead of the comparative quarter reflecting strong underlying trading, partially offset by temporary venue capacity constraints at Acetech Delhi, as previously signalled. Excluding Acetech Delhi, our like-for-like revenue growth is 10%.

As anticipated, revenues for the quarter were circa £31.5m (three months to 31 December 2017: £40.7m). The decrease was largely due to this being the smaller biennial quarter and the absence of the non-core events in Russia, which were divested in early October 2018.

During the period, three of our Top 10 events2 ran in the quarter – Africa Oil Week (“AOW”), YugAgro, and Acetech Mumbai – and together these grew double-digit on a like-for-like basis. This was driven by the TAG investment in AOW and YugAgro.

TAG programme and Ascential events integration
The TAG programme continues to progress according to plan and we remain focussed on the implementation of the new global CRM and People systems across the business.  

The integration of the Ascential Events business is nearing completion and is on schedule. The investment plans to drive growth into FY20 remain on track, with a continuing confidence in realising the synergies.

Managing the portfolio
We continue to actively manage our portfolio, to enable the Group to focus both management time and investment on our key events. In December we closed our Siberian operation, which ran 17 non-core events in FY18. The revenues of these events totalled £2.6m in FY18, and made a small loss. The region had consistently made losses in the last four years.

Financial position
The acquisition of Mining Indaba was completed during the quarter and upfront consideration of £20m settled. In addition, continued TAG investment in the period, the Ascential Events integration costs and strong operating cash conversion resulted in net debt as at 31 December 2018 of circa £108m, an increase of circa £20m since 30 September 2018 (31 December 2017: £52m) and in line with our expectations.

Outlook
We continue to benefit from the investments into products and operational improvements, despite some well-documented headwinds, including macro-economic issues in Turkey, tensions between Ukraine and Russia, Brexit and currency movements. These benefits are most clearly illustrated in our forward bookings, which were circa £164m of revenue for FY 2019, as at 18 January 2019 (19 January 2018: £113m) representing circa 75% of market expectations for the full year. On a like-for-like basis, these revenues are 8% ahead of this time last year, reflecting the strong revenue growth at a number of our big events, most notably Africa Oil Week.

The Board is pleased with the Group's performance, which is in line with expectations.

Notes to Editors
1. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period. This excludes all:
- Biennial events;
- Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
- Launches;
- Cancelled or disposed of events that did not take place under our ownership in the current year;
- Acquired events in the current period; and
- Acquired events in the comparative period that didn't take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
2. Top 10 Events – these are defined as the Top 10 events by revenue prior to the acquisition of Ascential Events Limited and Mining Indaba.


For further information please contact:

ITE Group plc
Melissa McVeigh, Director of Communications
+44 (0)20 7596 5000

FTI Consulting
Charles Palmer/Harry Staight
+44 (0)20 3727 1000


About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world’s leading organisers of international exhibitions and conferences.

ITE Group’s strategic vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.
20/12/2018 07:01:31 2018 Annual Report and Accounts

Today ITE releases its Annual Report and Accounts for the 2018 financial year.

Today ITE releases its 2018 Annual Report and Accounts for the 2018 financial year. The document contains a full strategic report for the year - including case studies from around the Group - governance information, and financial statements.

The 2018 Annual Report and Accounts is available to download from the following link:

View ITE Group Annual Report 2018 (PDF, 11MB) >

For more information and documents from the financial year, visit the Investor Relations section.
04/12/2018 10:20:04 2018 Preliminary Results Video

Watch CEO Mark Shashoua discussing ITE's 2018 end of year results and the progress being made on the TAG programme.

Watch CEO Mark Shashoua discussing ITE's 2018 end of year results and the progress being made on the TAG programme:

 

Read the full results announcement here, or view the 2018 Preliminary Results Presentation here.