Tarsus 's (TSY) focus on large biennial events and global expansion paid off handsomely last year, as the events and exhibitions group showcased a 44 per cent rise in adjusted pre-tax profits. Adjusted for biennial shows and a string of recent acquisitions, total sales climbed 11 per cent. That was partly driven by two of its largest events, the Dubai Air Show and Labelexpo Europe, where sales rose 25 per cent and 11 per cent respectively. And those gains look set to continue, with adjusted forward bookings 11 per cent ahead of 2013 levels.
Deals have been key to Tarsus's success, helping it improve its event portfolio and global footprint. The group acquired stakes in events companies in Mexico and Indonesia last year and added to its interests in China, Turkey and the US. It also withdrew from France amid torrid economic conditions, selling a chunk of its business to the divisional chief.
Yet Tarsus's strategy leaves it increasingly exposed to currency headwinds. The group now earns about half of its revenues in US dollars, and over a quarter in euros and Turkish lira. Investors should also watch the group's growing debt pile, up 80 per cent to £29m as a result of all the acquisitions.
Analysts at Numis Securities expect pre-tax profits of £15m this year, giving EPS of 12.3p, rising to £25m and 20p in 2015 with the return of Tarsus's biennial shows.
| TARSUS (TRS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 214p | MARKET VALUE: | £216m | |
| TOUCH: | 208-214p | 12-MONTH HIGH: | 253p | LOW: 206p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 36p* | NET DEBT: | 71% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 57.5 | 6.8 | 6.3 | 6.0 |
| 2010 | 43.6 | 5.3 | 5.4 | 6.0 |
| 2011 | 61.7 | 3.0 | 0.3 | 6.3 |
| 2012 | 51.5 | 8.4 | 5.6 | 6.8 |
| 2013 | 75.9 | 15.9 | 12.2 | 7.3 |
| % change | +47 | +89 | +118 | +7 |
Ex-div: 28 May Payment: 9 Jul *Includes intangible assets of £98m, or 97p a share | ||||
