ITE Group revenue rises slightly as it faces tough trading

ITE Group published a trading update for the period from 1 October to date on Thursday, including its first quarter trading period from 1 October to 31 December.

The London-listed firm’s investors were meanwhile gathering for its annual general meeting.

Trading in the first quarter was in line with management expectations, with revenue for the three months to 31 December improving to £35.0m, from £34.8m a year earlier.

On a like-for-like basis revenues for the quarter were, as the board expected, 4% lower than the comparative period reflecting continued weakness in Central Asia and the impact of lower oil prices on its Africa Oil Week event.

The group's balance sheet remained sound, it reported, and it continued to see strong operational cash flows.

Following the recent acquisition of a 70% stake in Shanghai Gehua, net debt stood at £61m on 20 January.

“Trading conditions in a number of the regions in which we operate continue to be challenging,” the board said in a statement.

“Further terrorist acts in Turkey are having a continued negative impact on international bookings on events in the region.

“Due to the uncertainty caused by the demonetisation of certain Indian banknotes, bookings on events in India have been negatively impacted, particularly in the real estate, fashion & accessories and construction sectors.”

As a result, it is possible that a number of smaller events in India would be postponed or cancelled, it warned.

“Whilst recent forecasts for improved economic growth in some of our core markets, and recent exchange rate movements, will be favourable if sustained, as previously flagged, given the high visibility of our business model with events booked in advance, there will be a lag before these benefits are reflected in our reporting results.”