ITE Group narrows losses after implementation of turnaround programme

Event organisers ITE Group posted higher revenues and narrower losses in its latest full trading year on a marginally reduction in sales volume.

ITE saw revenues grow from £134.4m to £152.63, amid like-for-like growth of 5%, the first LFL improvement the company had posted in four years.

Headline profits before tax fell back from the £26.5m posted in its previous fiscal year to £31.6m for the twelve months leading to 30 September, but the group was impacted by the "timing of events" and planned investments associated with its three-year transformation and growth (TAG) programme.

After those costs, the group slipped to a pre-tax loss of £3.2m, a marginal improvement on the £4.1m loss of a year earlier.

Losses per share also gained slightly, improving from 3.6p to 3.1p.

ITE used the strong level of cash generated as a result of new sales initiatives to reduce net debt by 16% to £49.7m.

Having completed a comprehensive review of the group's strategy and business throughout the year, ITE implemented its TAG programme aimed at further investment and onsite re-booking at core events, with the initiative already showing signs of success.

Looking forward, chief executive Mark Shashoua, said "Whilst there have been challenging trading conditions in Russia outside of Moscow, Central Asia and in Turkey, we have seen the benefit of improved trading in Moscow.

"Even at this early stage, we are clearly seeing the benefits of our TAG initiatives, through growth in our Core events and forward bookings.

"Our next financial year is underpinned by good visibility with circa. £98m of forward bookings, up 20% on last year on a like-for-like basis. ITE is well placed to realise its vision of creating the world's leading portfolio of content-driven, must-attend events that deliver an outstanding experience and ROI for our customers," he concluded.

As of 1200 GMT, shares had fallen back 1.67% to 177.00p.