A series of international acquisitions has helped ITE Group report a 29 per cent revenue rise in its first six months.
The exhibition organiser and publisher reported £68.6m (US$108.6m) in revenue over the six months to 31 March 2012, along with a 40 per cent pre-tax increase to £13.1m. A number of acquisitions contributed to growth including MVK, Krasnodar and Turkeybuild, which generated £11.6m in their first year under ITE ownership.
The company also noted volume sales in Russia during the first six months were nearly double last year’s comparable performance, and 14 per cent higher on a like-for-like basis. Business in Moscow was a particular highlight, with key events including Polygraphinter, Woodex and Aqua-therm Moscow.
Based on like-for-like revenues, ITE’s core global exhibition portfolio delivered organic growth of nine per cent in revenue and gross profits. In total, 367,900sqm were sold, up from 282,600sqm in the previous corresponding first-half, at 125 events. This compares with 93 events over the same timeframe last year.
Across other territories, Kazakhstan and Azerbaijan offered strong growth, while Paperex in India grew 30 per cent over its 2010 edition.
“ITE has delivered a good performance over the first half of the year, with solid organic growth supplement by the contribution of new businesses acquired last year,” ITE Group CEO Russell Taylor said. “The acquisitions of Autoexpo and the beauty portfolios in the Ukraine have expanded sector coverage in a market with potential for growth.
“The group has also grown its portfolio of events in India through a small bolt-on acquisition in Chennai in May.”
However, ITE flagged mixed results in April, claiming competitive pressures are having an impact on its Russian portfolio. Flagship show Mosbuild delivered 66,000sqm, a drop of 4,000sqm year-on-year, but sales across the less-established Euroexpomebel suffered due to pricing pressures.
Transrussia and Moscow International Protection and Security delivered 16 per cent volume growth year-on-year.
ITE reported forward bookings for the full-year are six per cent ahead of this time last year, with £156.2m secured in revenues across organic and acquired business.
“The group is in a strong financial position with net cash of £10.2m at 16 May, and with continued good trading conditions in our markets, the board has confidence in ITE’s future prospects,” Taylor added.
Last year, ITE Group reported £155.5m in revenue for the year to 30 September 2011, buoyed by the Russian recovery.
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