Shares of ITE Group (LSE: ITE) lifted by more than 6% in early trade after the company, which organises trade exhibitions and conferences, said that strong performance in Q4 will result in full year pre-tax profit arriving ahead of the current consensus.
ITE put on 38 events in the three months to 30 September with revenue increasing to £29m from £27m a year earlier. Two highlights for the firm were the World Food exhibition in Moscow and the MODA fashion show at the NEC in Birmingham.
The company has already booked £60m of revenue — around a third of current market expectations — for the 2015 financial year. In less upbeat news, currency headwinds could put pressure on earnings in 2015 unless Russia’s Ruble and the Euro rebound from current levels.
Economic sanctions imposed by the West have yet to have a direct impact on ITE’s Russian business, but in the future could weigh more heavily. ITE said:
“The group will continue to monitor the situation … and will take appropriate steps to protect its margins.”
After spending £50m on acquisitions during 2014 ITE Group had net debt of £15m as of 26 September. ITE will make its preliminary results announcement on 2 December.
