Events organiser ITE grows sales despite timing issues

Trade exhibitions and conferences organiser ITE Group managed to offset the adverse timing of events to grow revenues slightly in the first half.

Trade exhibitions and conferences organiser ITE Group managed to offset the adverse timing of events to grow revenues slightly in the first half.

Revenue totalled £69.4m in the six months to March 31st, ahead of the £68.6m reported the year before despite the company organising just 109 events during the period, down from 125 previously. On a like-for-like basis, revenues were up 11%.

However, the timing of events and biennial pattern had a £3.6m negative impact on the bottom line, meaning that headline profit before tax slipped from £13.1m to £11.1m. Meanwhile, operating expenses rose by £2.0m due to investment in infrastructure.

On a reported basis, profit before tax dropped from £6.3m to £2.6m.

Nevertheless, the interim dividend was raised from 2.1p per share to 2.3p per share. Net cash by the end of the half stood at £21.7m, up from £16.4m previously.

"ITE has delivered a good performance over the first half of the year, delivering solid organic growth in a period which was negatively impacted by biennial and event timing differences," said Chief Executive Officer Russell Taylor.

The firm made progress in expanding its footprint in Asia in the first half, boosting its "territorial operations in markets with further potential for growth". During the period the company purchased a 28.3% stake in Indian exhibition organiser ABEC and a 75% interest in Malaysian group Trade-Link. Since the period-end, ITE also bought half of Malaysian peer ECMI.

The firm said that it has booked revenues for the current financial year of £174m, ahead of £156m by the same time last year. On a like-for-like basis, revenues booked are 8.0% ahead.

"The group is in a strong financial position with continued good trading conditions in our markets the Board has confidence in the full year outcome," Taylor said.

Shares were up 2.97% at 302.73p in early trading on Monday.

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

UK house prices are definitely cooling off – but are they heading for a fall?
House prices

UK house prices are definitely cooling off – but are they heading for a fall?

UK house prices hit a fresh high in June, but as interest rates start to rise, the market is cooling John Stepek assesses just how much of an effect h…
30 Jun 2022
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves looks at the FTSE 100’s top yielding stocks for income investors to consider.
22 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022