Half-year results for events and exhibitions company Tarsus (TRS) were relatively positive for what is traditionally the quieter half of its operational year. For example, like-for-like sales, which are adjusted for acquisitions and biennial shows, grew by a solid-looking 8 per cent, while underlying pre-tax profits more than doubled to £3.9m. The bulk of the company's reported profits will come in the second half and events bookings are tracking about 12 per cent ahead of last year, according to management.
The Dubai Airshow and Labelexpo Europe will provide the biggest boost this year, but the performance of the company's regional divisions showed a clear split between developed and emerging markets during the half. Emerging markets contributed £12.3m to overall revenues, compared with £7.3m in the first half of 2012, and operating profits surged from £1.5m to £3.3m. That is being underpinned by new markets such as Turkey, where like-for-like revenues grew by 13 per cent. By contrast, the recession-hit eurozone, with France particularly weak, put in a flat sales performance on an underlying basis with losses narrowing to £100,000. Trading in the US market was more positive, with sales to the medical sector growing quickly and contributing to a 6 per cent rise in underlying revenue to £8.3m.
Broker Numis forecasts pre-tax profits of £23.7m, giving EPS of 19.1p (from £14.8m and 12.1p in 2012).
TARSUS (TRS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 243p | MARKET VALUE: | £233m | |
| TOUCH: | 242-247p | 12-MONTH HIGH: | 249p | LOW: 167p |
| DIVIDEND YIELD: | 2.8% | PE RATIO: | 43 | |
| NET ASSET VALUE: | 41p* | NET DEBT: | 69% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 19.2 | -0.16 | -1.00 | 2.20 |
| 2013 | 26.0 | 0.76 | -0.90 | 2.30 |
| % change | +35 | - | - | +5 |
Ex-div: 4 Dec Payment: 16 Jan *Includes intangible assets of £112m, or 117p a share | ||||
