ITE exhibits record profits

A key element of ITE's recent strategy has been international expansion and, thanks to recent acquisitions in India, Malaysia and, since the period end, China, it has now established a firm footprint in Asia. That goes alongside an already solid position in Russia, which generates more than 60 per cent of revenues. Chief executive Russell Taylor says the focus has now switched to expansion along "industry verticals" - moving into new industries in countries where the company is already established. Although he adds that China remains an area where geographic expansion could still be on the cards: "I'd like to see some more business in China."

One risk of being so international is that it does expose ITE to currency fluctuations and the recent strengthening of sterling against the Russian ruble, which Mr Taylor says is difficult to hedge against, is a worry. The company estimates that a 1 ruble movement impacts profits by £500,000.

With the benefits of the recent Chinese investment being offset by Ruble weakness, broker Peel Hunt has left its 2014 forecasts unchanged at adjusted pre-tax profit of £60.2m, giving EPS of 18.7p (from £59m/18.4p in 2013).