EUROPE - The ITE Group’s revenue in the three month period to 30 June 2012 dropped just over £3.3m (US$5.15m) to £76.1m year-on-year.
On a like-for-like basis revenues for the third quarter were approximately three per cent lower than the previous year, influenced most significantly by the performance of its Moscow-based construction event Mosbuild event in its biennially weaker year.
The remainder of ITE's portfolio, excluding Mosbuild, delivered like-for-like revenue growth of around six per cent for the quarter.
The company claims trading conditions in its core markets remain as reported and in-line with its expectations. The result does not include contribution from the biennial Moscow International Oil & Gas exhibition, but does include first-time contributions from Turkeybuild, which ITE acquired in July 2011, and from the spring events of the recently acquired automotive and beauty portfolios in Ukraine.
Mosbuild faced a competitive launch in April this year from Messe Munich’s international arm IMAG, which debuted Buildex 2012 on 2-6 April 2012 at the Crocus Expo International Exhibition Centre. An ITE spokesman claimed Mosbuild demonstrated its resilience to competition in delivering sales of 59,300sqm, excluding the biennially impacted windows sector, which represents “a small reduction from the previous year's comparable event” of 3,500sqm. Disregarding biennial considerations, this year’s Mosbuild was down to 66,000sqm from 77,600sqm in 2011.
Turkish construction event Turkeybuild, held in May each year, was the first edition under the group's 60 per cent ownership and the event, which ITE claims is wall-bound, delivered a three per cent increase at 36,100sqm (2011: 35,000sqm). An ITE spokesman said the result is in-line with management expectations at the time of the acquisition.
Elsewhere, the first editions of the recently acquired Ukrainian Automotive and Beauty exhibitions performed in line with ITE’s expectations while new business in the nation was forged with the acquisition of Beautex for €8.6m. Beautex runs two exhibitions each year: Intercharm and Beautyexpo, both of which serve the professional beauty trade and cosmetic and aesthetic industry in Ukraine.
During the quarter the group completed two acquisitions in India, picking up Roof India and Hand Tools and Fasteners Expo from Chennai-based Unitech Exhibitions for 115m Indian rupees and a portfolio of six exhibitions from Mumbai-based Conventions and Fairs for 110m Indian Rupees. ITE claims these acquisitions give the group an expanded regional base of operations, as well as adding critical mass to the group's Indian business.
On 13 July 2012, the group expanded its reach in the UK fashion sector with the purchase of the London-based premium menswear event Jacket Required.
Spending around £17m on acquisitions and deferred consideration during this financial year has resulted in net debt of £1.7m on 13 July 2012.
This additional business has aided total sales booked. On 13 July 2012 the group had £163.6m of sales booked for the current financial year. This time last year that figure was £146.8m.
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