Tarsus (TRS) has announced plans to buy another 25 per cent of its South East Asian Exhibition business, form a strategic partnership in the UAE and take full ownership of its Mexican venture. The problem is the events group doesn’t have the cash to fund this ambitious spending spree and has therefore tapped the market for £24m of capital.
Investors were understandably surprised by this announcement. Historically, the group has funded its expansion through its ample cash flows and in 2017, generated £36m of cash from operations. But chief executive Doug Emslie defends the timing. To keep its debt at a comfortable 1.5 to 2 times adjusted cash profits, Tarsus required a cash injection and rolling the three acquisitions together ensured that management only had to return to the market once.
