Slide 1 - ITE Group Plc

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					ITE Group PLC
Interim Results
6 months ended 31st March 2005
ITE Group plc – Interim Results March 2005


                    ITE In Brief


                    • Founded in 1991
                    • Over 600 staff
                    • 14 Corporate offices
                    • Over 140 B2B trade exhibitions and events p.a.
                    • Events in 15 countries
                    • Emerging and developing markets focus




1
ITE Group plc –   Interim highlights




         •   Turnover: £22.7 million (2004: £20.2 million) up 12%


         •   Headline profit before tax of £3.8 million (2004: £2.1million)


         •   Cash reserves: £38.0 million (2004: £29.4 million) up 30%


         •   Increased interim dividend of 0.9p per share (2004:0.55p)


         •   Up to £30m Share buy-back later this year


         •   Strong trading performance in ten leading H1events
             - 14% growth in space sales and 17% growth in revenue


         •   Successful expansion of Mosbuild into new facility


         •   Strong forward sales for the second half of the year


2
ITE Group plc –        2005 Interim Financial Highlights




                                                                  6 months Ended   6 months Ended
                                                                   31 March 2005    31 March 2004
                                                                       Unaudited        Unaudited
        Turnover                                         up 12%          £22.7m           £20.2m
        Gross Margin                                                        38%              36%


        Gross Profit                                     up 22%           £8.6m            £7.2m
        Operating expenses                                               (£6.0m)          (£5.6m)
        Contribution from associates                                      £0.3m            £0.1m
        Net interest receipts                                             £0.9m            £0.4m
        Headline profit before tax                                        £3.8m            £2.1m



        Diluted Headline EPS                                                1.0p             0.6p
        Dividend per share                                                  0.9p           0.55p


        * All figures above stated before amortisation




3
ITE Group plc –      Cash Flow




                                                          6 months to       6 months to
                                                       31 March 2005     31 March 2004
                                                            Unaudited         Unaudited
                                                                  £m                £m

          Net Cash Flow from Operations                         14.2                9.2

          Net Interest & Dividends Received                       1.3               0.3

          Taxation                                              (4.5)             (2.0)

          Capital Expenditure & Financial Investment              0.3             (0.1)

          Acquisitions / Disposals                              (2.3)               1.8

          Dividends Paid                                         (4.6)             (3.0)
                                                                _____             _____
                                                                   4.4               6.2

          Issue of Shares                                         0.1               1.0

                                                                _____             _____
          Increase in Cash                                        4.5               7.2
                                                                _____             _____




4
ITE Group plc – Consolidated Balance Sheet



                                                       31 March 2005   31 March 2004
                                                       Unaudited £’m   Unaudited £’m

             FIXED ASSETS
             •    Goodwill                                      30.5            27.0
             •    Tangible Assets                                1.8             2.0
             •    Associates & Investments                       1.2             1.1
                                                               _____           _____
                                                                33.5            30.1

             CURRENT ASSETS
             •   Debtors   due within 1 year                    22.6            16.9
                           due after 1 year                      2.7             3.0
             •   Cash                                           38.0            29.4
                                                               _____           _____
                                                                63.3            49.3

             CREDITORS
             •   Deferred Revenue & Creditors                   49.3            38.7
             •   Deferred Consideration & Provisions             1.5             0.9
             •   Proposed Dividend                               2.6             1.5
                                                               _____           _____
                                                                53.4            41.1

                                                               _____           _____
             NET ASSETS                                         43.4            38.3
                                                               _____           _____

5
ITE Group plc – Sales Analysis



                                      Square   Revenue   Gross
                                      metres             profits
                                       000’s     £m       £m


                First Half 2004        85.3     20.2      7.2
                Timing differences    (6.7)     (0.9)     (0.4)
                Core growth            7.8       1.2      1.0
                New events launched    9.1       1.8      0.1
                Acquisitions           6.5       1.6      0.8
                Non - recurring       (5.0)     (1.2)     (0.1)

                First half 2005       97.0      22.7      8.6




6
ITE Group plc - Currency Exposure




          • ITE revalues monetary assets monthly


                                      Exchange Rates              Unhedged at        Forward
                                   30 Sept ‘04   31 Mar ‘05       31 Mar ‘05         Cover
           Euro                    1.46          1.46             €-                 €16m @ 1.45
           US Dollar               1.80          1.88             $2.7m              $-
           Other                                                  £2.1m*             £-
                                                                  * Sterling equivalent
          • 2005 Proforma sales analysis

                                   Proforma                         Av. Sales             Av. Sales
                                   2005 sales      % of Revenue     Rate HI 2005          Rate 2004
          Euro based               £42.5m          59%              1.47                  1.44
          US Dollar based          £24m            33%              1.85                  1.69
          Other                    £6m             8%




7
ITE Group plc - IFRS accounting


             Timetable for IFRS accounting

              • ITE will adopt IFRS Accounting for 2005 – 06

              • IFRS Reconciliation for Financial Year 2005 Report




            Main changes for ITE will be


            •IFRS2    Share based payments to be costed by fair value at date of grant
            •IFRS 3   Acquisitions use fair value allocated over identifiable assets
            •IFRS 3   Goodwill not amortised but tested for impairment
            •IAS 14   More detailed presentation on segmental reporting
            •IAS 39   Derivatives – hedge accounting




8
ITE Group plc –        Top Ten H1 Events




                                                               Area (m2)    Area (m2)

                                                              2004/2005    2003/2004

       Moscow International Travel and Tourism   Russia          19,300       17,000

       Kazakhstan Oil & Gas                      Kazakhstan       7,400        6,200

       Ingredients Russia                        Russia           5,500        4,700

       MODA UK Spring                            UK              12,100       10,300

       TransRussia                               Russia           4,600        3,100

       Moscow International Sports Show          Russia           3,300        4,000

       Kievbuild                                 Ukraine          5,000        4,100

       Public Health                             Ukraine          3,500          n.a.

       Informatica Technology (ITC)              Ukraine          3,000          n.a.

       Worldfood Ukraine                         Ukraine          2,400        2,800




9
ITE Group plc -           Top 5 ranked by gross profit




                      25000




                      20000                                                         MITT



                      15000
          Metres sq




                                                                                    Moda UK

                      10000

                                                                                    KIOGE
                                                                                    Ingredients Russia
                      5000
                                                                                    TransRussia



                         0
                              2000/01    2001/02      2002/03       2003/04   2004/05
                                                   Financial Year




10
ITE Group plc –Share buyback


                   40                                             38.0

                   35                                    33.5
                                   Cash Balances (£M)
                   30

                   25                          22.1
                   20      16.3       17.7

                   15

                   10
                   5
                            2001



                                       2002



                                                2003



                                                          2004


                                                                 Interim
                                                                   2005
                   • Group’s debt capacity circa £50m

                   • Acquisition programme can be accommodated
                   • Post tax yield on cash 3.5%

                   • Earnings accretive – circa 0.3p per share



11
ITE Group plc –   Trading Update




          Sales at 13th May 2005


          •   £64.1m of sales booked for full year.
              (£53. 3m sales booked at the same time last year).

          •   88% of market expectations for 2004/05 sales now booked
              (92% same time last year)

          •   Like for like forward bookings for the remainder of 2005 and for FY
              2006 both show improvement of 10%+ on last year’s equivalent figures




12
ITE Group plc – Russia
Moscow, St Petersburg



              Trading Update & Developments


              •   Moscow International Travel – space up 13% / revenue up 6%


              •   TransRussia rebound from 3,100m² to 4,600m²


              •   Competitive launch against Moscow Sports


              •   Successful expansion of Mosbuild into Crocus in April


              •   Crocus expands space to 90,000m² gross for 2006


              •   Location issue – Autosalon 2006




13
ITE Group plc - Central Asia
Kazakhstan, Azerbaijan,
Uzbekistan


               Trading Update & Developments


               •          Kazakhstan Oil & Gas event
               •          - Exhibition expands into new pavilion
               •          - Revenue up by 10% overall


               •          9 successful new launches in Caspian Region


               •          Baku Oil & Gas acquisition well placed


               •          Strong growth prospects in Uzbekistan




14
ITE Group plc - Ukraine, Turkey



            Trading Update & Developments


            •     Acquired Informatica Technology & Public Health events grow 20% (m²)


            •     Kievbuild growth 20% (m²)


            •     Political instability affects Worldfood Ukraine


            •     ITF:          • Successful Auto Shows
                                • Re – focussing of textile clothing show
                                • New initiative for furnishing event




15
ITE Group plc - UK



          Trading Update & Developments


          •     Successful Spring Moda UK Event up 16% in sales (m²)

          •     Fashion Extras title acquired – exhibition potential


          •     RAS Publications integration – revenue targets achieved




16
ITE Group plc - Strategy



            •   More of the same…primary focus on organic growth in core markets

            •   Excellent growth prospects in existing markets

            •   Vigilence in existing key markets – no complacency

            •   Close co-operation with venues in all markets

            •   More m2 on existing events

            •   Active new launch program
                 – New themes, established markets
                 – Established themes, new markets

            •   Opportunistic bolt-on acquisitions
                 - Sector or market fit




17
ITE Group plc –   Interim Results 31 March 2005




          Appendices

          I         Shareholder structure

          II        Gross profit by location

          III       Gross profit by industry

          IV        ITE’s Local infrastructure strength

          V         Venue prepayments and loans

          VI        International venue space

          VII       Cash profile of Business

          VIII      Cost of exhibiting




18
ITE Group plc – Shareholder Structure May 2005                           Appendix I



                                                                %    No of Shares
                                                                        (millions)

             •   Aberforth                                    12.4            35.7
             •   Schroders                                    12.2            35.3
             •   Veronis Suhler Stevenson                     10.7            30.9
             •   Fidelity                                      7.5            21.7
             •   Ceyda Erem                                    6.8            19.5
             •   Edward Strachan                               5.0            14.4
             •   Merrill Lynch                                 4.4            12.5
             •   ESOT                                          3.9            11.1
             •   Scottish Widows                               3.8            11.0
             •   Barclays Global Investors                     3.3             9.6
             •   UBS Global                                    3.2             9.3
             •   Legal & General                               2.7             7.8
             •   Threadneedle                                  2.1             6.0
             •    JP Morgan Fleming                            2.0             5.9
             •   Old Mutual                                    2.0             5.7
             •   Other Management                              0.1             0.2
             •   Other Institutions and individuals           17.9            52.2
                                                             _____           _____
             Total shares in issue                           100%           288.8
                                                             _____           _____

             Options in the money at 93.5 pence                              17.3

             Options on issue not in the money
             NB: Management including ESOT                   15.8%
                 Management including options in the money   20.4%

19
ITE Group plc –       Geographic Spread                                                          Appendix II
2005 Pro-forma Gross Profit by
Geographic Location
of Event

                                       2005 (2004) Gross Profit by Region



                                                       Western Europe
                            Rest of the World            9% (8%)
                              3% (0.2%)                                 Southern & Eastern
                                                                              Europe
                                                                             4% (3%)



                                                                                  Central Asia
                                                                                  12% (13%)




                               Russia
                             72% (76%)




20
ITE Group plc – By Industry                                                                      Appendix III
2005 Pro-forma Gross Profit by
Industry Sector




                                             2005 (2004) Gross Profit by Sector

                                                        Fashion
                                                                  IT & Telecoms
                                                       5% (5%)
                                                                     6% (5%)
                                   Motor & Transport
                                       7% (8%)



                                 Oil & Gas
                                 16% (9%)
                                                                                  Construction
                                                                                  37% (40%)


                                   Other
                                  6% (8%)


                                       Food
                                     11% (12%)                       Travel
                                                                   12% (13%)




21
ITE Group plc - ITE’s Local Office Infrastructure Strength                 Appendix IV




                           Office            Country      Staff   Events
                                                                   2004
                           Moscow            Russia       119       36
                           St Petersburg     Russia        60       12
                           Kyiv              Ukraine       66       22
                           Almaty
                           Astana            Kazakstan     81       34
                           Atyrau
                           Tbilisi           Georgia       6        4
                           Tashkent          Uzbekistan    25       8
                           Baku              Azerbaijan    21       10
                           Istanbul          Turkey        34       4
                           Johannesburg      S. Africa     10       2
                           Hamburg           Germany       26       na
                           Huddersfield      UK            32       2
                           London / ROW                   105       6


                           Total                          585      140


                           ITF (50% owned)   Turkey        93       12



22
ITE Group plc - Venue Prepayments & Loans                            Appendix V




                                                         Loans and
                                       Agreement      Commitments
                                            Dates              £m
            Venue Related

            Moscow                          to 2010             -

            St Petersburg                   to 2012            1.8

            Almaty                          to 2010            0.9

            Uzbekistan                      to 2011            0.1

            Kyiv                            to 2011            1.4

            Istanbul                        to 2025             -

            Other                                              0.1

                                                             _____
                                                               4.3
                                                             _____
            Other Loans

            Prague                                             0.7
                                                             _____
                                                               5.0
                                                             _____

23
ITE Group plc –           International venue space                                                              Appendix VI




               Moscow                            U.K.                            Paris                     Germany
                    Gross m2                            Gross m2                         Gross m2                Gross m2

       Expocentre         70,000      NEC                200,000     Nord                 191,000   Cologne        285,000
       Crocus*            90,000      EXCEL               60,000     Versaille            151,000   Frankfurt      324,000
       Gostigny Dvor       5,000      ECO                100,000     CNIT                   5,000   Berlin         160,000
       Olympiski          11,000                                     Louvre                19,000   Hanover        498,000
       VVC                20,000                                                                    Dusseldorf     233,000
       WTC                 2,000                                                                    Nuvemburg      148,000
                                                                                                    Munich         155,000
                         198,000                         360,000                          366,000                1,803,000


       * Projected for 2006 - 60,000m2 curently under construction




24
ITE Group plc – Cash Profile of Business                                                                                   Appendix VII
For a typical trade exhibition




                 Revenue                                            Costs

                 • 20%         12 months out                        • 10%            Staff                            throughout
                 • 40%         6-7 months out                       • 10%            Promotion                        throughout
                 • 40%         2-3 months out                       • 25%            Venue                            2 months out
                                                                    • 10%            Stand construction               0 months out
                                                                    • 45%            Gross Profit


                             Exhibition 5000 m2 - £1M Revenue
                                                                                                            Cumulative Cashflow
                    £'000s

                       600

                       500

                       400

                       300

                       200

                       100

                         0
                             -12     -11    -10     -9     -8        -7      -6     -5      -4    -3   -2        -1       0
                                                                Months to opening of exhibition




25
ITE Group plc –   Cost of exhibiting                       Appendix VIII




                                   Advertising /
                                                   Exhibition
                                   Promotions
             Travel &                               Space
                                       5%
           Subsistence                               20%
               21%




         Transport
            3%
                     Staff
                     12%                           Exhibition
                                                   Services
                                                     39%




26

				
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