Tarsus expected to deliver flat earnings after FX headwinds

8th Jan 2014 15:54

Events business Tarsus is likely to have flat earnings growth after unfavourable currency movements and slower medical sector growth offset a generally strong second half.Group like-for-like organic revenue rose 11% at constant exchange rates, meaning full-year pre-tax profits and net debt for the calendar year will be in line with its expectations.Managing Director Doug Emslie said: "2013 has been another excellent year for the group. Our major shows continue to go from strength to strength, underlining the importance of continuing to invest in our market leading brands."After moves into Mexico and Indonesia during the year completed Tarsus's desired geographical footprint, the FTSE Small Cap company strengthened its portfolio in December through acquisitions in China and Turkey, and has also agreed to dispose of up to 18% of the Group's French business.Emslie said like-for-like bookings for 2014 shows were tracking 12% ahead of the equivalent time last year, notwithstanding slower sales on GZ Auto show "caused by protracted venue discussions which have now been successfully concluded".Broker Investec noted that large events in second half delivered, offset by foreign exchange (FX) and slower medical growth, "implying unchanged full-year earnings per share". It added that dollar and particularly Turkish lira FX headwinds, plus the now-solved GZ Auto issues reduced 2014/2015 expected earnings, despite good like-for-like forward bookings and outlook. Shares in Tarsus were down 3.6% to 229.75p not long before close on Wednesday.OH