When news of the crisis in Ukraine broke, investors wasted no time wiping a third of the market value off ITE (ITE). The exhibition group organises events in Ukraine and earns over 60 per cent of its operating profits in Russia.
Regardless, ITE put on a good show last half. It organised 136 events - a quarter more than the previous year - including London’s 'Scoop' fashion show and 'Moscow International Travel & Tourism'. Sales climbed everywhere except Eastern and Southern Europe, where they slumped 36 per cent to £7.9m as two low-margin events in Turkey were discontinued and attendance fell in Ukraine.
Growth was accelerated by acquisitions in China and Turkey, which brought a furnishings exhibition and an annual cosmetics event into ITE's fold. The group also invested £38m, which meant it ended the year with about £2m of debt but helped its pre-tax profits soar almost five-fold to £12m.
The company's underlying prospects look strong: ITE’s booked revenues to date of £158m are up 5 per cent at constant currencies. But forex movements are wrecking the reported figures. Broker Numis Securities expects full-year pre-tax profits of £55m, giving EPS of 18p, down from £59m and 19p last year.
| ITE (ITE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 219p | MARKET VALUE: | £ 546m | |
| TOUCH: | 219-220p | 12-MONTH HIGH: | 323p | LOW: 188p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 37p* | NET DEBT: | 2% | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 69.4 | 2.6 | 0.9 | 2.3 |
| 2014 | 71.2 | 12.2 | 4.3 | 2.5 |
| % change | +2 | +363 | +378 | +9 |
Ex-div:02 Jul Payment:07 Aug *Includes intangible assets of £118m, or 47p a share | ||||
