Recovery in its core Moscow market enabled corporate events organiser ITE to continue growing its dividend, while full-year sales were boosted by maiden contributions from three newly acquired businesses.
These new businesses contributed £16m of the additional £41m of revenue generated during the year. Business also benefited from the largest biennial event operated by ITE – the Moscow International Oil and Gas Exhibition. However, even after excluding these factors, like-for-like revenues still rose 18 per cent during the year. Group operating profit rose by a third to £40m, too, which resulted in a static net operating margin for the period of 26 per cent.
While ITE's Russian market certainly isn't immune to global economic malaise, management thinks that business activity will continue improving next year on the back of forecast GDP growth for the country in excess of 4 per cent. Moreover, this year's acquisition of a 60 per cent stake in the YAPIbuild event provides ITE with exposure to Turkey's fast-growing construction sector. Group forward bookings, at £93m, are 8 per cent up on last year on a like-for-like basis.
Investec Securities expects to increase its EPS estimate for 2012 by about 1 per cent to 16p (from 15.8p).
| ITE GROUP (ITE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 202p | MARKET VALUE: | £502m | |
| TOUCH: | 201-202p | 12-MONTH HIGH: | 261p | LOW: 155p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 30p* | NET CASH: | £5.5m | |
| Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 99.1 | 33.7 | 9.10 | 4.50 |
| 2008 | 110 | 34.4 | 9.40 | 5.30 |
| 2009 | 117 | 41.5 | 12.8 | 5.50 |
| 2010 | 114 | 31.3 | 10.0 | 5.70 |
| 2011 | 155 | 39.1 | 12.8 | 6.10 |
| % change | +37 | +25 | +28 | +7 |
Ex-div: 4 Jan Payment: 13 Feb *Includes intangible assets of £130m, or 52p a share | ||||
