A strengthening Rouble wiped £2.1m off ITE's profits in the first half of this year, reversing a £3.9m gain in the same period last year when the currency was on the back foot against the Euro and sterling. Strip out these foreign exchange movements and pre-tax profits were only 11 per cent lower at £8.5m, modestly ahead of analyst estimates.
Excluding acquisitions, overall exhibition floor space sold fell 20 per cent on the prior year, reflecting 11 fewer events organised and the absence of a number of smaller exhibitions and conferences. The trend though is improving with sales volumes falling 30 per cent in the first quarter, but only 15 per cent in the next three months. ITE's core shows - in food, motoring and energy - have remained stable, particularly in Moscow which accounts for half of its Russian business. Improving oil and gas prices will also help.
ITE currently has £98m of forward bookings for the current financial year, representing 95 per cent of full year revenue forecasts. Acquisitions since the period end has reduced the cash pile to around £14m. Broker Numis Securities is maintaining its 2010 pre-tax profit estimate of £33.5m, even after the £2.1m forex hit, implying EPS of 10.2p (2009: £45.8m/14.2p).
| ORD PRICE: | 146.6p | MARKET VALUE: | £ 365m | |
| TOUCH: | 146.4-146.8p | 12-MONTH HIGH: | 157p | 85p |
| DIVIDEND YIELD: | 3.8% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 23p* | NET CASH: | £29.7m | |
| Half-year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Net div per share (p) |
|---|---|---|---|---|
| 2009 | 43.2 | 11.1 | 3.40 | 1.60 |
| 2010 | 39.2 | 5.6 | 1.70 | 1.70 |
| % change | -9 | -50 | -50 | +6 |
Ex-div: 07 Jul Payment: 12 Aug * Includes intangible assets of £67.8m, or 27p a share | ||||
