UK - Tarsus Group is forecasting a strong second-half exhibition result following a solid revenue performance for its first half-year.
The organiser and publishing company reported a 14 per cent increase in Group revenues to £19.2m (US$31.51m) for the six months to 30 June 2011 in its interim results. Like-for-like revenues were up seven per cent year-on-year, while adjusted pre-tax profits reached £600,000, down from £1.1m in the first half of 2010. The company attributed the drop to increased overheads in advance of the strong programme of events scheduled for the second half of 2011.
Tarsus singled out acceleration of forward bookings, its medical division and a 10 per cent revenue rise on its US-based Off Price Show in February as event highlights during the first half. Of particular note was Dubai (up 12 per cent) and China (up 11 per cent), Tarsus Group MD Doug Emslie said.
Regionally, Europe provided the highest revenues at £7.1m but was down from £7.4m year-on-year, hindered by a six per cent decline in French sales due to slower recovery across smaller shows in that market. In contrast, the Group’s emerging market revenues increased from £3.3m in the first half 2010 to £5.7m in the six months to 30 June.
“We’ve seen the larger French events stabilise in the first half and three of our four shows in the second half are up compared with 2010,” Emslie explained. “The small shows are lagging behind and we expect these to be flat in the next six months.
“The smaller events tend to lag behind larger ones, which are more resilient in a downturn. The other thing is our smaller shows are service-oriented. In a recovery people buy products first then services such as IT or marketing second.”
Emslie pointed out the bulk of exhibition revenue and profit will come in the second half of the year. Forward bookings now stand at 87 per cent of anticipated full-year revenues, up from 77 per cent this time last year, he said. A bigger LabelExpo Europe in August and Dubai Air Show in November are expected to be major contributors.
“We’re feeling confident that things are going well – our divided and forward bookings statements are key indicators of our confidence in the second half of this year and the flexibility in our balance sheet gives us opportunity for expansion,” Emslie said.
More show launches and acquisitions are on the cards for the next three months in its three core emerging markets: Turkey, the Middle East and China.
Tarsus acquired a majority stake in Turkey-based organiser IFO in May as part of rapid expansion plans for that country. The purchase is worth up to £10m in aggregate cash payments. A one-off $400,000 acquisition cost was occurred by Tarsus as a result in the first half.
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