Acquisitions and a robust position within its key geographies helped exhibitions specialist
A series of acquisitions made last year have added £11.6m to headline sales and the group has since acquired two events in Ukraine and another two in India. That said, growth is still being spearheaded by Russia, where volumes have grown 14 per cent on a like-for-like basis – accordingly, sales from the region rose 51 per cent to £40.3m. Central Asia and Caucasus have also performed well, with sales growing 13 per cent to £11.6m, buoyed by the Kazakhstan International Oil & Gas Exhibition, which was held in October. Indeed, the strength in these two regions has helped to mask flat growth in western and southern Europe and the UK.
Investec Securities, however, expects a largely flat full-year pre-tax profit of £52.1m, giving EPS of 16.5p (£51.4m and 16.5p in 2011) – on the back of currency tailwinds.
|ITE GROUP (ITE)|
|ORD PRICE:||201p||MARKET VALUE:||£502m|
|TOUCH:||200-202p||12-MONTH HIGH:||252p||LOW: 155p|
|DIVIDEND YIELD:||3.1%||PE RATIO:||15|
|NET ASSET VALUE:||30p*||NET CASH:||£16.4m|
|Half-year to 31 Mar||Turnover (£m)||Pre-tax profit (£m)||Earnings per share (p)||Dividend per share (p)|
Ex-div: 4 Jul
Payment: 9 Aug
*Includes intangible assets of £131.6m, or 53p a share
ITE still holds a strong share of the events market in eastern Europe, Russia and Central Asia and is successfully adding to its portfolio through acquisitions. But unfavourable currency fluctuations may dent earnings and the shares trade on a not overly cheap 12 times expected earnings. Hold.
Last IC view: Fairly priced, 202p, 29 November 2011