ITE Group Plc. Preliminary Results Year ended 30 th September 2010

Transcription

1 ITE Group Plc Preliminary Results Year ended 30 th September 2010

2 Highlights for the year to 30 September 2010 Financial Results Revenue 113.5m 116.7m Headline profit before tax 36.6m 45.8m Dividend 5.7p 5.5p Cash at 30 September 23.0m 23.1m 39.5m ex biennial & forex Economies moved from recession to recovery over the year 20m - business and brand expansion: India, Ukraine, Turkey Strong working capital inflow in year : 50m Good prospects for cyclical rebound L4L sales for 2011: 10% + ITE Group plc Preliminary Results for the year ended 30 th September 2010 Page 1

3 2010 FINANCIAL RESULTS ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 2

4 Financial Highlights for the year to 30 September Audited Audited Acquisitions + 8m Fx + 4m Biennial - 5m Net trading - 10m Turnover 113.5m 116.7m Gross profit margin 49% 52% Headline profit before tax 36.6m 45.8m Biennial - 1.5% Acquisition effect -1% Tax rate 23% 26% Lower underlying rates & planning Headline diluted EPS 11.6p 14.2p Dividend per share 5.7p 5.5p Continued progressive policy ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 3

5 2009 to 2010 Headline PBT Bridge 55 Headline PBT M (2.1) (4.0) (4.3) (1.8) Headline PBT Foreign exchange turnaround Biennial Effect of Recession Overheads, Financing receipts & Associates Acquisitions 2010 Headline PBT ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 4

6 Cash Flow 2009 to 2010 Cash Bridge 136% of Headline PBT Turkey 8.0m Aqua-therm 15.0m India 3.4m Global 1.1m Other 3.7m (1.1) (7.4) 70 (9.2) Cashflow - M (18.6) (13.3) Cashflow from Operations Net Financing, Forex, Divs from Associates & Capex Tax Venue Prepayments Acquisitions & Def Consideration Dividends 2010 ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 5

7 Sales and Yields Analysis Metres Revenue Gross Profit Yield 000s m m Per m² 2009 Results from Events Non annual 2009 (17) (7) (5) 2009 Recurring Events Acquisitions Net other (52) (8) (4) 2010 Recurring Events ex acquisitions Non annual Results from Events ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 6

8 Currency and hedging Currency of sale 2010 % Average sales rate EUR % GBP RUB Other 12 Forward cover : 1 ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 7

9 Effect of Recession 2008 v 2010 Net Sqm Top 10 Events 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1. Mosbuild 62,700 24, Mitt 19,500 1, WFM 21,000 3, Moda 34, Kioge 7,900 3, Aquatherm Kiev 14,200 4, Transrussia 7, Interstroyexpo 6,400 8, Uitt 4,600 2, Expoelectronica 5,100 4, difference from 2008 ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 8

10 Trading update 2011 contracted revenue m Sales booking % m 52m 56m 70m 54m 74m % Booked of full year revenue after 2 months trading % 53% 51% 60% 48% 56% 10 0 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011* * Based on consensus revenue of 130m ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 9

11 Divisional Analysis ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 10

12 Revenue by sector and region 2010 ITE Group Revenue by Region ITE Group Revenue by Sector 14% 17% 7% 4% Russia Central Asia & Caucasus Eastern & Southern Europe UK & Western Europe 58% Rest of World 15% 5% 7% 10% 39% Construction Oil & Gas Travel Food & Drink Fashion & Textiles 12% 12% Motor & Transport Other ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 11

13 Business Review SUMMARY Revenues for the year ended 30 September 2010 m 2009 m % change Russia % (net biennial - 6m ) Central Asia & Caucasus % Eastern & Southern Europe % (acquisitions + 7m) UK & Western Europe % Rest of World Total % ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 12

14 GDP growth in ITE s markets 2009* 2010* 2011* Russia (8%) 4% 4% Kazakhstan 1% 5% 5% Azerbaijan 9% 4% 2% Uzbekistan 8% 8% 7% Ukraine (15%) 4% 5% Turkey (5%) 8% 4% UK (5%) 2% 2% India 6% 10% 8% *Source: IMF World Economic outlook database, Oct 2010 ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 13

15 Russia 2010 L4L volume sales in Russia 14% down on m² Revenue 66.1m 80.9m Moscow recovery regions following Complementary acquisition of Global Expo - Moscow Outlook Good opportunities for expansion to new sectors St. Petersburg new larger venue planned for 2013 Novosibirsk new larger venue under construction ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 14

16 Central Asia 2010 Kazakhstan markets improving construction slowly m² Revenue 19.6m 19.0m Azerbaijan new 28,000m2 venue opened in June 2010 Uzbekistan & Azerbaijan trading positively Outlook Aqua-therm opportunities in Kazakhstan and Azerbaijan Competition for oil & gas conference ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 15

17 Eastern and Southern Europe 2010 Ukraine flat now Turkey growing m² Revenue 15.3m 9.6m New sectors in Turkey - Food Furnishings Machinery Gifts Aqua-therm Kyiv - a market leading event Outlook Further expansion opportunities in both countries New space in Istanbul at both leading venues! Extension of venue agreement in Kyiv ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 16

18 UK / Rest of World UK - Steady trading conditions - Successful brand extension lingerie & bubble India - Good trading conditions - Paperex Lighting South Asia Professional Conference Organiser (PCO) - LNG 2010 m² Revenue 12.5m 7.2m Outlook UK - Plans for new launch activity in fashion India - New launches planned: food, construction - Venue space restricting industry PCO - SEA 2011 ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 17

19 STRATEGY ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 18

20 Strategic Priorities to strengthen and build on existing market leadership to expand the business model in market and new market to grow and improve portfolio of international brands to invest in management development ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 19

21 Market Leadership Brand Management Event Investment Brands Venue Relationships Theme Protection Pre payments Better Facilities Preferential Rates Market Leadership Investment in Staff Staff Development Local Office Infrastructure International Sales Reach New ISD New Offices Delhi Plan for New Offices ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 20

22 Expanding the Business Model International Brands MIMS Joint Ventures Launches Aquatherm Moscow Acquisitions Aquatherm Kyiv EMITT In Market Global Expo ITF Food, Gifts, Furniture, Machinery New Market India Krasnodar Industrial Machinery Siberia ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 21

23 Strategy Execution Date Event Consideration Annual Revenue March 2008 Siberian Fair 8.0m 5.5m April 2008 Interstroyexpo 15.0m 2.0m Jan 2009 EMITT 4.0m - 5.5m 2.6m Sector expansion in market New market Existing market & sector Nov 2009 India 4.0m 1.6m Feb 2010 Split Associate 50% of Associate 5.0m April 2010 Global Expo 1.8m 1.4m April 2010 Aqua-therm 15m 4.0m TOTAL 49m 22.1m ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 22

24 Trading through the cycle Sqm 000s Revenue Gross profit 2008* Portfolio m 55m Organic Change (165) ( 14m) ( 6m) Volume - 12m : / costs + 6m Acquisitions m 6m 2010* Portfolio m 55m *2008 and 2010 are biennial equivalents ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 23

25 Outlook Good economic growth in core regions Good potential for cyclical recovery Good strategic opportunities to extend the business model Cash at 26 Nov 25m + [gearing potential] 2010 v 2008: a stronger business base ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 24

26 ITE world Algeria 2. Azerbaijan 3. China 4. Georgia 5. Germany 6. Great Britain 7. Holland 8. India 9. Kazakhstan 10. Kyrgyzstan 11. Poland 12. Russia 13. Spain 14. Tajikistan 15. Turkey 16. Turkmenistan 17. UAE 18. Ukraine 19. Uzbekistan 8 3 Offices in these locations Events held in this territory ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 25

27 APPENDICES ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 26

28 Contents I Shareholder Structure at 27 October 2010 II Key Management Team III Top 10 Events IV Group Balance Sheet V Venue Prepayments and Loans ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 27

29 Shareholder structure at 27 October 2010 Blackrock Schroders Standard Life Old Mutual Scottish Widows Legal and General Threadneedle Investments J P Morgan Directors % No. of Shares (millions) 16.4% 15.6% 6.0% 6.0% 5.5% 5.2% 4.6% 3.1% 2.9% ESOT Other Institutions and individuals 4.0% 30.7% Total Shares in issue 100% Options in the money: 0.2% 0.4m Management including options in the money 3.3% Free float 96.7% Average daily trading volume (6 months) 0.8m ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 28

30 Management Team Iain Paterson Chairman John Price Company Secretary Russell Taylor CEO Neil Jones Suzanne King Alexander Shtalenkov Edward Strachan Stephen Keen Colette Tebbutt Andy Braid Finance Director Corporate Development Director Moscow General Director Regional Director Regional Director MODA International sales Director ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 29

31 Key exhibitions (in 2010 gross profit order) Rank Event Location 2010 m² sold 2009 m² sold 2008 m² sold 1 MosBuild & MosBuild+ Moscow 62,700 74,900 87,100 2 Moscow International Travel & Tourism (MITT) Moscow 19,500 20,200 20,800 3 World Food Moscow Moscow 21,000 16,300 24,100 4 MODA UK Birmingham 34,100 29,200 33,300 5 Kazakhstan Oil & Gas / conference Almaty 7,900 10,300 11,200 6 AcquaTherm Kyiv 14,200 14,800* 19,000* 7 Transrussia Moscow 7,400 7,300 8,200 8 Moscow International Protection and Security Moscow 6,600 6,400 6,400 9 Interstroyexpo St. Petersburg 6,400 10,100 15,100* 10 Expoelectronica Moscow 5,100 5,300 9,200 % of Gross Profit earned by Top 10 events 65% * not under ITE ownership ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 30

32 Consolidated Balance Sheet 30-Sep-10 Audited m 30-Sep-09 Audited m Non Current Assets Goodwill & Intangibles Other non-current assets Current Assets Debtors due within 1 year Cash (net of O/D) m 58.2 Creditors Deferred Revenue & Creditors Deferred Consideration Deferred Tax Provisions Net Assets m ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 31

33 Venue prepayments and loans Venue Location Prepayments 30 September 2010 Theme Protection Rates Agreed Expocentr Moscow Crocus Moscow 1.2m Lenexpo St Petersburg 0.4m Atakent Almaty 0.7m IEC Kiev 0.9m Uzexpocentr Tashkent 0.3m CNR Istanbul 7.0m TOTAL 10.5m ITE Group plc Preliminary Results for the year ended 30th September 2010 Page 32