It's not always straightforward to determine just how well Tarsus Group (TRS) is performing, as the media group's most important corporate exhibitions are biennial affairs - namely the Dubai Airshow and Labelexpo in Belgium.
But if you discount the timing effects, the company's first-half trading performance was very encouraging, with adjusted pre-tax profits up 83 per cent to £5.5m. Reported profits were held in check by a combined charge of £3.6m for amortisation and impairment on the disposal of the group's French business. Organic revenues were on the rise, along with visitor numbers. And with overall bookings up 15 per cent (adjusted for biennials) and revenues heavily weighted to the second half, investors can look forward to a bumper result in 2015.
Tarsus is making strides towards expanding its events portfolio across emerging markets. That segment now accounts for just over half of group revenues, with strong performances apparent in Dubai, Turkey and China. The group also increased its footprint in South East Asia through the acquisition of a 50 per cent stake in organiser AMB Group.
Business activity in Europe was subdued by comparison, while Tarsus's US business generated revenues of £9.7m and an adjusted profit of £2.6m. During the period, Tarsus acquired US-based show PAINWeek from Aventine Co in a deal worth around £17.8m.
Investec gives an adjusted EPS for 2015 of 19.9p, against 11.5p last year.
| TARSUS (TRS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 220p | MARKET VALUE: | £223m | |
| TOUCH: | 218-220p | 12-MONTH HIGH: | 236p | LOW: 188p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 71 | |
| NET ASSET VALUE: | 22p | NET DEBT: | 157% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 23.1 | 0.3 | -1.1 | 2.4 |
| 2015 | 34.0 | -1.9 | -3.0 | 2.5 |
| % change | +47 | - | - | +4 |
Ex-div: 3 Dec Payment: 15 Jan *Includes intangible assets of £130m, or 128p a share | ||||
