Adjusted for these and underlying pre-tax profits actually stormed ahead from £9.5m to £16.8m buoyed by Tarsus' two largest events - the Dubai AirShow and LabelExpo Europe - which occur in odd years. But even on a like-for-like basis, turnover still grew 8 per cent year-on-year.
As planned, the emerging markets - Middle East, China and Turkey - have been spearheading growth with adjusted profits of £7.2m last year way above the £5.5m reported in 2009 when the biennial Dubai Airshow event was last hosted. Moreover, the US business has started to recover and on a biennial basis revenues and profits were both up 38 per cent. However, even with the benefit of LabelExpo Europe which has its best results in over 30 years, European profits were down £1.1m on the £6.2m reported in 2009 reflecting the tough trading in the samller exhibitions in France.
Peel Hunt expects 2012 pre-tax profits of £10.5m and EPS of 9.6p (2011: £16.5m/16.4p), rising to £19.6m and 17.8p, respectively, in 2013.
|ORD PRICE:||138p||MARKET VALUE:||£ 119.4m|
|DIVIDEND YIELD:||4.6%||PE RATIO:||458|
|NET ASSET VALUE:||48p||NET DEBT:||32%|
Whilst 2011 was lifted by biennial events, Tarsus' emerging market focus is certainly attractive. The shares trade on 14 times EPS forecasts, in line with the media sector, which is fair value. Hold.
Last IC View: Good value, 158p, 29 July 2011