ITE Group's first half profits rise on expansion

19th May 2014 07:42

- Pre-tax profit up 63 per cent- Revenue grows 2.5 per cent- Expansion in Turkey, China and UK- Dividend lifted 8.6 per centITE Group's first half profits advanced as the British organiser of exhibitions and conferences expanded its businesses into Turkey, Asia and the UK.Revenue in the six months to end of March 2014 came to £71.2m, up 2.5% on the previous year. Headline pre-tax profit jumped 63% to £18.2m as growth in the firm's main markets offset weaker exchange rates across emerging markets and the decision to discontinue low margin events IMOB and TATEF in Turkey.The company flew in the face of challenging trading conditions in regional Russia and Ukraine amid the political turmoil.Headline diluted earnings per share for the first six months were 6p, compared to 3.7p last year. During the period the company bought Beauty Eurasia in Turkey and a 50% investment stake in the Chinese Chinacoat/Surface Finishing exhibitions. In the UK the company acquired the remaining 60% of which it did not already own of Scoop, a high-end London fashion event for the womenswear sector."Looking forward, we continue to seek opportunities to expand the business with investments that are consistent with our strategy of building market leading positions in higher growth markets," said Chief Executive Russell Taylor. "The group is in a strong financial position and operates a resilient business model. With good visibility on current year bookings, the Board has confidence in the full year outcome."The firm said it ended the period with a strong balance sheet and continues to generate positive cash flow. ITE had net debt of £1.8m, reduced from £21.7m a year earlier. The interim dividend was raised to 2.5p per share from 2.3p in 2013.RD