Renewed economic growth and decreased global political tensions provided the backdrop to a great 2017 for the media and events industry. Tarsus (TRS) led the pack, according to its chief executive, Douglas Emslie, who said that the group’s 7 per cent organic growth rate beat that of its peers. “For us, the US and China drove most of the growth,” he said. The former managed a 21 per cent increase in total revenues compared with 2016, despite the absence of biennial events, while high demand in the latter helped nearly double revenues in the Asian division.
Tarsus has mixed a sensible acquisition strategy with the replication of its existing shows in different geographies. In the last three years, it has launched 54 events and has another 12 planned for 2018. The two acquisitions made in 2017 boosted the group’s business in China and in Mexico, and Mr Emslie says he is targeting two to three medium-sized acquisitions this year as well.
This has the potential to boost annual pre-tax profits and EPS above the £27.9m and 17.4p currently forecast by broker Numis (from £19.3m and 15.1p in 2016). Mr Emslie is confident about strong 2018 because forward bookings are already higher than management’s 10 per cent target.
| TARSUS (TRS) | ||||
| ORD PRICE: | 307p | MARKET VALUE: | £347m | |
| TOUCH: | 306-307p | 12-MONTH HIGH: | 336p | LOW: 261p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 14 | |
| NET ASSET VALUE: | 63p* | NET DEBT: | 111% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
| 2013 | 27.9 | 15.9 | 12.2 | 7.3 |
| 2014 | 50.9 | 7.1 | 5.0 | 7.8 |
| 2015 | 82.0 | 19.1 | 14.4 | 8.4 |
| 2016 | 68.4 | 8.6 | 6.9 | 9.1 |
| 2017 | 118 | 27.9 | 21.5 | 10.0 |
| % change | +72 | +225 | +212 | +10 |
| Ex-div: | 31 May | |||
| Payment: | 12 Jul | |||
| *Includes intangible assets of £188m, or 166p a share | ||||
