EUROPE – Tarsus has grown its group revenue by 42 per cent to £61.7m and halved its debt as it builds its business in the US, China, Turkey and the Middle East.
Like-for-like revenue growth, excluding foreign exchange movements, increased by eight per cent in a year that saw Tarsus make a series of acquisitions and divestments.
Net interest expense increased slightly to £1.6m and reported profit before tax was £3.0m, down on 2010 (£5.3m). However adjusted profit before tax rose 77 per cent to £16.8m (2010: £9.5m), or 15 per cent on a more accurately comparable biennial basis (2009: £14.6m).
The substantial increase in adjusted profit before tax can be attributed to a number of one-off items relating to disposals, acquisitions and goodwill write-downs. These include an exceptional £1.4m of transactional costs in respect of completed and pending acquisitions, a £2.3m profit from the disposal of French subsidiary Modamont and a goodwill (non cash) write-down on the remaining French businesses of £8.4m.
According to Tarsus, the goodwill write-down was taken as the carrying value of these French businesses, and has altered as a result of the changed economic conditions in Europe.
The company halved its net debt to £13.7m (31 December 2010 £28.6m), a figure Tarsus chairman Neville Buch claims exceeded expectations.
"Last year was a record year with the group achieving a strong financial performance, both on a year-on-year and biennial basis, and we have halved our debt level,” said Buch, adding that Tarsus is on course to achieve its target of securing half its revenue from the emerging markets by 2013. Revenues from the emerging markets currently contributes 38 per cent to total revenue on a proforma basis.
“This was achieved alongside a stronger than expected performance by the US business,” Buch said.
The Middle East and China also provided good results for Tarsus in 2011. In the Middle East revenues increased to £21.2m, up on the 2010 figure of £7.5m. This reflects the growing Dubai Airshow (pictured).
Chinese joint venture Hope saw revenue climb by a quarter in 2010.
"We have now established strong positions in the US, China, Turkey and the Middle East,” said Buch, “and we are focused on continuing to build our portfolio in these markets through a combination of organic and acquisitive growth.
“Our increasing exposure to the higher growth opportunities across these markets, in the short to medium term, should drive earnings and dividends.”
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