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Acquisitions boost declining ITE volume sales
posted on: 11/1/2011 10:11:10
International exhibition organiser ITE has reported an increase in overall volume sales of almost 70,000sqm due to recent acquisitions this year despite continuing decline in the company’s core of pre-existing shows.
In 2010, ITE acquired new shows in Turkey, an exhibition company in India and a portfolio of Aquatherm events in Ukraine and Central Asia. These buoyed the company’s overall sales, despite a 29 per cent decline in its pre-acquisition portfolio since 2008.
Although the group’s actual revenue (£113.5m) was down by around six per cent compared to 2009 like-for-like, the impact of the recession combined with the biennial pattern of the Moscow International Oil and Gas event – which did not take place in 2010 – accounted for a £10m reduction in revenues. Also, a favourable exchange rate helped the company’s revenue figures in pounds sterling.
“What we saw last year was a decline mostly in the first half of the year,” ITE chief financial officer Neil Jones told EN, “but that was offset by the acquisitions – such as in Turkey and Ukraine – and the biennial shows.” He added that 2011 will be the stronger financial year in ITE’s biennial cycle.
“The key is that having replaced the volumes through acquisitions, the existing core portfolio is starting to grow. They are already rebounding and we have made that clear to our investors,” he continued.