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19/09/2018 16:56:38 Bett & Learnit Collaborate to Gather the World’s Education & Learning Professionals

Bett, the world’s oldest and largest EdTech exhibition, today announces a collaboration with Learnit, the brand new, venture-backed conference for the global learning ecosystem.



Bett, the world’s oldest and largest EdTech exhibition, today announces a collaboration with Learnit, the brand new, venture-backed conference for the global learning ecosystem. This January, a group of Bett’s 35,000+ visitors, 200+ speakers and 850+ exhibitors will also be able to participate in Learnit at the QEII Centre in Westminster as one of its 1,000+ attendees, 150+ speakers, or 50+ sponsors.

Rachel Brodie, Portfolio Director of Bett said, ‘Bett is the must-attend show for EdTech: for knowledge, for products, for networking, for suppliers, for learning and for the global education community. Learnit is where the global learning ecosystem goes for a conversation about the current state and future of learning. The significance and impact of both of these events is clear; they bring people together who believe education can change the world. That’s why we’re excited to welcome Learnit to London in the same week as Bett.’

Katy Fryatt, Founder & CEO of Learnit said, ‘Change has never been this fast. The conversation and community at Learnit will explore what this means for learning at every age. Learnit welcomes government, educator leaders, heads of talent & training, startups, tech companies, investors and media from across the globe. Bett has long been the world’s largest and most important global EdTech gathering. It’s a fantastic place for teachers to see and experience the latest advances in education technology. We’re very excited to collaborate with Bett.’

Before joining Bett, Rachel was an education publisher at Macmillan and also spent time teaching in Mexico City. Katy and Rachel spent a brief time working together on Bett in 2015. Katy spent the last three years working for Anil Aggarwal building Europe’s largest fintech and retail innovation conferences (Money20/20 Europe and Shoptalk Europe). Anil is a venture-backed tech entrepreneur with exits to companies including Google. He also joins Learnit as its Chairman and Co-Founder.

‘It’s time to rethink learning,’ said Anil. ‘Our global education systems have been built on legacy. Learnit will celebrate the revolutionaries driving change in education and create an entirely new experience for the global learning ecosystem.’ 

Bett will continue to take place at the ExCeL Centre, in east London, welcoming visitors from 23rd to 26th January 2019. Learnit will take place in Westminster at the QEII Centre and Central Hall, from the evening of 23rd to 25th January 2019. Visitors can register for Bett at bettshow.com and tickets for Learnit can be purchased at www.learnit.world.
19/09/2018 16:45:42 Bett reinvigorated by new owners, ITE Group

Bett, the world’s leading EdTech show, launches new initiatives for both clients & visitors; a restructure of its management team, & a partnership with Learnit, the new venture-backed conference for the global learning ecosystem.


Bett, the world’s leading EdTech show, is delighted to announce the launch of new initiatives for both clients and visitors; a restructure of its management team, as well as a partnership with Learnit, the new venture-backed conference for the global learning ecosystem.  The new owners of the Bett portfolio of shows, ITE Group plc, one of the world’s leading organisers of international exhibitions and conferences, will be putting substantial investment into the Bett UK show in January at Excel, as well as the Bett summits across the world and Bett Educar in Brazil.

Management Team

Rachel Brodie has been appointed to the new role of global Portfolio Director of Bett, effective from 1st October.  A former teacher, Rachel’s career has been dedicated to the education sector.  Rachel has worked on Bett since 2014 both on growing Bett’s international presence via global summits and on leading the UK show during some of its most successful years.  

Bett will become part of the Brands Division at ITE Group, which is run by Elizabeth Deeming, an international business leader, with a global remit to invest and grow the Brands portfolio.

The new leadership team will drive a number of important developments as part of ITE’s focus on delivering improved customer service for Bett clients. These new initiatives include a new global visitor and EdTech leader programme, new VIP services for our key accounts, new zoning and show floor layout, a spotlight section for exhibitors to display or launch products, and, new content streams dedicated to special educational needs and further education & higher education. We are also continuing our long-standing partnership with BESA.

Mark Shashoua, CEO of ITE Group, commented, “Bett is a truly global brand that we believe has an enormous potential for growth given the right investment. We are passionate about delivering best in class events and these initiatives that we are introducing will bring added value to this great show. Rachel’s knowledge of schools and teaching will be invaluable in her new role. I am confident that these changes will reinvigorate the global Bett brand.”

Learnit
Today, we are also announcing a significant new partnership with Learnit, the new venture-backed conference for the global learning ecosystem.  The events will run concurrently, broadening the visitor pool to each event, further bolstering the week as the world’s most important meeting place for the entire global education community. 

Elizabeth Deeming, Director of Brands Division, ITE Group added, “I believe these initiatives create a great opportunity for further excellence both at a product and a team level and I look forward to seeing the success of the expanding Bett team.”

About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world’s leading organisers of international exhibitions and conferences.

ITE Group’s strategic vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. The Group recently launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.

About Bett
Bett is the UK’s leading cross-sector education community. Every year Bett brings together 850 leading companies, 100 EdTech start-ups and over 35,000 learners and educators from around the globe. Bett’s mission is to bring together people, ideas, practices and technologies so that educators and learners can fulfil their potential.

Press Enquiries

Bett: Christian Kusi-Obodum at WithPR christian.kusi-obodum@withpr.co.uk
Learnit: Alice McDonnell alice@learnit.world

05/09/2018 09:08:42 Proposed disposal of ITE Expo LLC

ITE today announced the proposed disposal of 56 non-core events held in Russia - a major step in delivering the Group's TAG programme by actively managing the Group's portfolio.


ITE Group plc today announces the proposed disposal of ITE Expo LLC ("ITE Expo"), the operating company for 56 of the Group's Non-Core, regionally-focused, smaller events in Russia, to Shtab-Expo LLC (the "Purchaser) (the "Transaction"). These events comprise a significant proportion of the Group's Non-Core assets in Russia. This disposal is a major step in delivering a key pillar of the Group's Transformation and Growth (TAG) programme to focus on must-attend International events by actively managing its portfolio.

ITE retains 16 designated Core events in Russia, which have international exhibitors and visitors, and these form part of a new legal entity, ITE Expo International LLC. These Core Events include market-leading brands like MosBuild, WorldFood Moscow, YugAgro and MITT. The proposed disposal will enable management to focus on those Core Events which have a greater potential to deliver sustainable growth and value for Shareholders.

The 56 regional Non-Core Events in Russia, which are being disposed of, include VacuumTech Expo, Stomatology St Petersburg, UMIDS Krasnodar and Jewellery Salon Krasnodar. In the financial year ended 30 September 2017, these Non-Core Events in Russia generated revenues of approximately £12.0 million and contributed operating profits of approximately £1.3 million. These Non-Core Events in Russia comprised gross assets of approximately £14.3 million as at 30 September 2017.

The Group will receive consideration of RUB 640 million (approximately £8 million) over the nine years following completion of the Transaction together with additional variable consideration of up to RUB 400 million (approximately £5 million) based on the Target's incremental revenue growth during this period.  The terms of the Transaction incentivises the Purchaser to make earlier payments to satisfy the consideration. If the Purchaser has by 30 September 2023 paid consideration of RUB 520 million (approximately £6.5 million), exclusive of variable consideration based on incremental revenue growth, this will satisfy in full the Purchaser's obligation to pay the consideration, including any future variable consideration.

The Directors intend to use the proceeds from this disposal for general corporate and working capital purposes. Whilst the disposal is expected to be marginally dilutive to earnings, management expect the overall benefits of the TAG programme, and in particular the focus on our core events in Russia, to exceed this short-term dilution.

Mark Shashoua, CEO, ITE Group plc said:

"The proposed sale is a milestone in delivering a key pillar of our Transformation and Growth Programme - to actively manage our portfolio. These regional events had previously been separated into a different business unit from the international Core business and so this disposal will simplify operations significantly. By selling this portfolio of smaller, lower-growth regional Russian events we will be able to focus our time and investment on our internationally-focused Core shows which have a much greater potential to deliver sustainable growth."

The Purchaser is 99% owned by Mr Alexander Shtalenkov, General Director of ITE Expo, with the remaining 1% of participatory interests being held by his spouse. The Transaction is a related party transaction for the purposes of the Listing Rules because Mr Shtalenkov is the General Director of ITE Expo and is therefore a related party of the Group. The Transaction, as a consequence is conditional on shareholder approval.

Further details of the Transaction and a notice convening a general meeting to approve the Transaction will be sent to ITE shareholders in due course.

For further information please contact:

ITE
+44 (0) 20 7596 5000
Melissa McVeigh, Director of Communications

Numis Securities Limited
+44 (0) 20 7260 1000
Nick Westlake / Toby Adcock / Hugo Rubinstein

FTI Consulting
+44 (0) 20 3727 1000
Charles Palmer / Harry Staight


Notes

'Core Events' are defined as events that the Group believe are of strategic importance to the Group's future, including the Group's largest international events and those with the greatest potential for growth.

'Non-Core Events' are defined as events which the Group believe have less potential for growth.

ITE Expo International LLC consists of 16 Core international Events as well as 22 Non-Core regional events based in Siberia.


About ITE Group plc

ITE Group plc was founded in 1991 and is now one of the world's leading organisers of international exhibitions and conferences.

ITE Group's strategic vision is to create the world's leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group plc is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.


Disclaimer:

This announcement contains forward-looking statements relating to the business, financial performance and results of ITE and the industry in which ITE operates. These statements may be identified by words such as "expect", "believe", "estimate", "plan", "target", or "forecast" and similar expressions, or by their context. These statements are made on the basis of current knowledge and assumptions and involve risks and uncertainties. Various factors could cause actual future results, performance or events to differ materially from those described in these statements and neither ITE nor any other person accepts any responsibility for the accuracy of the opinions expressed in this presentation or the underlying assumptions. No obligation is assumed to update any forward-looking statements.

Numis Securities Limited ("Numis") which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting solely for ITE in relation to the Transaction and nobody else as a client in relation to the Transaction and will not be responsible to anyone other than ITE for providing the protections afforded to the clients of Numis or for providing advice in relation to the Transaction.
17/07/2018 07:01:57 Completion of Ascential Exhibitions acquisition

We are delighted to announce the completion of the acquisition of the Ascential Exhibitions business.

Following the initial announcement of 15th May, we are delighted to announce the completion of the acquisition of Ascential Exhibitions business - a highly complementary portfolio of market-leading events.  We look forward to bringing renewed focus and investment to help them achieve their growth potential. 

Mark Shashoua, ITE Group CEO, said: “I am delighted to announce the completion of the acquisition of the Ascential Exhibitions business, a highly complementary portfolio of market-leading events.  We look forward to giving them the investment, management focus and international platform they need to grow.

“I’d like to welcome all our new colleagues who have joined us from the Ascential Exhibitions business, as we look to run the best shows, anywhere in the world.”

Read the full announcement here.

  

10/07/2018 06:54:50 Trading Update: Q3 FY2018

ITE is today publishing a Trading Update for the period from 1 April 2018 to 10 July 2018.

ITE is today publishing a Trading Update for the period from 1 April 2018 to 10 July 2018.

Revenue for the period was around £58m - 13% ahead of the comparative period on a like for like basis. This was driven by strong underlying trading - particularly for the four top 10 events that took place in the quarter, which all delivered double-digit revenue growth.

The update also covers the acquisition of the Ascential Events business, part funded by a circa £265m rights issue. This acquisition is due to complete on 17 July 2018.

The TAG programme is also going to plan, with continued roll-outs of Event Best Practice Blueprints and disposal of 3 non-core events and the Malaysian subsidiary Trade Link, the organiser of the metalworking exhibition Metaltech which would have taken place under ITE ownership in May 2018.

Overall, the Group had booked circa £153m of revenue for the nine months to 30 June 2018 (30 June 2017: £145m).

To read the full update, please click below.

ITE Group Trading Update Q3 FY2018

16/05/2018 11:24:19 Webcast: Interim Results 2018

ITE Group CEO Mark Shashoua and CFO Andrew Beach present the company's H1 2018 Interim Results to analysts, with a Q&A session at the end of the presentation.

ITE Group CEO Mark Shashoua and CFO Andrew Beach present the company's H1 2018 Interim Results to analysts, with a Q&A session at the end of the presentation.

Watch the webcast here:

ITE Group Interim Results 2018: Webcast Presentation


15/05/2018 07:04:00 Interim Results 2018 & Acquisition Update

Today we announce our interim results for the six months ended 31 March 2018 and the proposed acquisition of Ascential Events Limited.


ITE GROUP PLC
(“ITE” or the “Group”)

INTERIM RESULTS ANNOUNCEMENT


Transformation and Growth Programme (“TAG”) underpins strong organic revenue growth

Proposed acquisition of complementary market leading events from Ascential plc for £300m

 


Financial highlights
  Six months to
31 March 2018
Six months to
31 March 2017
Volume sales 353,300 m2 325,200 m2
Revenue £75.4m £69.6m
Headline profit before tax £16.0m £15.4m
Profit before tax £1.3m £3.1m
Headline diluted earnings per share2 3.7p 3.9p
Diluted earnings per share  (0.7p)  0.6p
Interim dividend per share 1.5p 1.5p
Net debt3 £51.2m  £55.2m


  • First year of like-for-like4 growth in volume and yields since 2014
  • Revenue of £75.4m; growth of 8% on a like-for-like basis, driven by early TAG initiatives, focus on Core events and the majority of markets returning to like-for-like revenue growth
  • Four top 10 events ran in the period and together delivered double digit like-for-like revenue growth
  • Headline profit before tax (“Headline PBT”) of £16.0m; statutory profit before tax of £1.3m
  • Growth of 2% on a like-for-like basis in headline PBT reflects reinvestment into future events
  • Continued strong cash generation from sales initiatives and reduced net debt by 7% to £51.2m
  • Maintained interim dividend of 1.5p, in line with policy
  • Forward bookings5 of £144 million already contracted for FY18; 2019 forward bookings up 31% on a like-for-like basis

Strategy update
  • Early TAG initiatives and focus on Core6 events is driving performance
  • Most markets have now returned to growth – continued good progress in Moscow
  • Completed negotiations to move Mosbuild to Russia’s largest exhibition venue on a long term basis
  • TAG investment is on track, expenditure within budget
  • Continued progress in managing the portfolio, including the disposal of TradeLink ITE Sdn. Bhd (“TradeLink”) for £4.2m

Proposed acquisition of Ascential Events Limited
  • Proposed acquisition of seven market leading and scalable event brands
  • Expected to be earnings enhancing in first full year of ownership
  • Cost synergies achievable net of investment
  • Strong scope for growth under ITE management as part of Core portfolio
  • Diversifies ITE’s revenue by geography and product
  • Addition of market leading brands supports and accelerates the delivery of ITE’s vision
  • Standby underwriting entered into with Investec Bank plc in respect of the proposed rights issue to fund the acquisition


Mark Shashoua, CEO of ITE Group plc, commented:
“We are seeing the benefits from a number of our early initiatives in the TAG programme which has driven a return to revenue growth in most of our markets. Overall, revenues were up 8% on a like-for-like basis and, encouragingly, the focus on operational rigour on our Core events delivered the first like-for-like volume and yield growth since 2014. Consistent with this, the four top 10 shows that took place during the first half collectively delivered double digit revenue growth.

Today we have also announced the proposed acquisition of seven highly complementary market leading events from Ascential plc. These events are well known to us, the acquisition is in line with our product-led acquisition strategy and gives us the benefit of a more balanced portfolio by geography and product. It also adds two more global brands in BETT and CWIEME and is expected to be earnings enhancing in 2019, our first full financial year of ownership.

As a result of our focus on forward bookings we have good visibility into this year and next with revenues booked for 2018 at 89% of consensus for the full year and, on a like-for-like basis, bookings for 2019 are up 31% at £31.0m. The combination of good progress on TAG and the proposed acquisition of Ascential Events Limited represent significant steps for ITE in realising 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.

The acquisition is conditional, inter alia, on obtaining shareholder approval and the completion of a proposed rights issue which will be launched in due course. Further details can be found in the separate announcement on the acquisition also issued today.



1. Headline profit before tax is defined as profit before tax and adjusting items which include amortisation of acquired intangibles, impairment of goodwill, intangible assets and investments, profits or losses arising on disposal of Group undertakings, restructuring costs, transaction and integration costs on completed and pending acquisitions and disposals, tax on income from associates and joint ventures, gains or losses on the revaluation of deferred/contingent consideration and on equity option liabilities over non-controlling interests, and imputed interest charges on discounted equity option liabilities – see note 3 to the condensed consolidated financial statements for details.
2. Headline diluted earnings per share is calculated using profit attributable to shareholders before adjusting items – see notes 3 and 6 to the condensed consolidated financial statements for details.
3. Net debt is defined as cash and cash equivalents after deducting bank loans.
4. Like-for-like results are stated on a constant currency basis, after excluding events which took place in the current period but did not take place under our ownership in the comparative period and after excluding events which took place in the comparative period but did not take place under our ownership in the current period. For clarity, this excludes all:

- Biennial events;
- Timing differences (i.e. events that ran in only one of the current or comparative periods, due to changes in the event dates);
- Launches;
- Cancelled or disposed of events that did not take place under our ownership in the current year;
- Acquired events in the current period; and
- Acquired events in the comparative period that didn’t take place under our ownership in the comparative period (i.e. they took place pre-acquisition).
See ‘Trading highlights and review of operations’ for further detail.
5. Forward bookings are contracted revenues for the years ending 30 September 2018 and 30 September 2019. These are the bookings as at 11 May 2018, unless otherwise stated.
6. Core events are those of strategic importance to our future and include the Group’s largest events, those with the greatest potential for growth and a number of smaller but strategically important events. Following the strategic review, the Group deliberately segmented its business into Core and Non-Core, enabling management to increase its focus on events that present the greatest opportunities whilst reducing distraction from smaller events.


Enquiries:
Mark Shashoua, Chief Executive Officer
Andrew Beach, Chief Financial Officer
Melissa McVeigh, Director of Communications
 
 ITE Group plc 020 7596 5000
Charles Palmer / Emma Hall / Harry Staight 
 
FTI Consulting 020 3727 1000
Nick Westlake / Toby Adcock
 
Numis 020 7260 1000
 

About ITE Group plc
ITE Group plc was founded in 1991 and is now one of the world’s leading organisers of international exhibitions and conferences.

ITE Group’s strategic vision is to create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers. In May 2017 the Group launched its Transformation & Growth (TAG) programme, which is designed to transform the Company from a geographic-led business to a product-led business that focuses on market-leading events, wherever they are in the world. ITE strives to run the best shows and offer the best service to its customers throughout the world regardless of location. By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders.

ITE Group is a public limited company and has been listed on the main market of the London Stock Exchange since 1998.



Executive summary
ITE has delivered a strong overall trading performance as we start to see the benefits of our early TAG programme initiatives coming through. This was the first period of like-for-like growth in both yield and volume since 2014 and these results reflect revenue growth in the majority of our markets as a result of our early TAG initiatives and focus on our Core events.

Revenues of £75.4m (2017: £69.6m) for the first six months are 8% higher than the same period last year on a like-for-like basis. This was as a result of improved like-for-like trading (£6.2m), driven by strong performances across several markets with volume growth achieved in Russia, Asia, Central Asia and Eastern & Southern Europe. Revenue growth was also supported by the benefit of biennials and event timing differences (£4.3m) and a small positive impact from the acquisition of the Gehua portfolio of events in China, which completed during the previous year (£0.5m, net of other event disposals). This was offset by the adverse impact from foreign exchange (£3.5m) and the cancellation of 22 of our less profitable events in line with our strategy (£1.6m, net of launches).

Despite the revenue impact of the net cancellations and costs associated with the TAG programme, headline profits before tax of £16.0m are 4% higher than the same period last year. The increase is due to the positive impact of biennial events and timing differences (£2.4m), net acquisitions (£0.4m) and foreign exchange (£0.2m). This was offset by the impact of ongoing investment in the TAG programme (£2.7m). Because of the positive top line performance and continued growth at Sinostar (our Chinese joint venture), we have been able to make additional investments into future events, spending £1.5m more than at this stage in the comparative period. Despite these reinvestments, headline profit before tax grew by 2% on a like-for-like basis.

Reported profits before tax were £1.3m (2017: £3.1m). This is after including £2.3m of one-off costs relating to the TAG Programme (2017: £nil). This takes our total spend, recognised in the income statement, on one-off TAG costs to £6.9m since the launch of the programme, which is slightly less than previously indicated, due to timing.

Russia, a significant part of our business, has delivered a strong performance, ahead of market growth following the decision to allocate the largest proportion of TAG investment into the region. Like-for-like volumes were 6% higher than this time last year, following a strong performance across the Core Moscow portfolio and at the Core agriculture event in Krasnodar, Yugagro.

Whilst there has been an increase in political tensions between Russia and the West, there has been a negligible effect on both results to date and forward bookings. It is important to note that the effects of the sanctions in 2014 have meant that exposure to US/UK companies attending our Russian events is very small, accounting for just £0.4m (0.3%) of Group revenues in 2017. Through our strong sales operations in certain international markets we are experiencing growth in particular from Chinese and Turkish exhibitors.

In other regions, we delivered like-for-like revenue growth across all regions in Asia and our Chinese joint venture Sinostar performed well, contributing £6.7m to profitability. On a like-for-like revenue basis both Turkey and Ukraine experienced double-digit growth. In Turkey this represents just one event – the EMITT travel show – which returned to growth this year, following management attention and operational improvements delivered as part of the TAG programme.

We have recently rolled out improved content at our Core shows in Moscow, Istanbul and across the Brands portfolio, and exhibitor NPS scores are on average up by 10 points. Core buying groups and revisits (which is a key indicator of quality audiences returning throughout the show and staying longer) are both up.

This has led to increased levels of rebooking for 2019 where we are 31% ahead of this time last year on a like-for-like volume basis, with bookings at £31m (2017: £27m).

As at 11 May 2018, the Group has contracted £144m of revenue for the current financial year which is 13% ahead of last year on a like-for-like basis. This is partly due to bookings being made earlier as a result of a focused sales effort on Core events, and gives the Group much improved visibility, which represents 89% of consensus.

Strategic Update - TAG programme
Our vision is “To create the world’s leading portfolio of content-driven, must-attend events delivering an outstanding experience and ROI for our customers”.

By putting exhibitors and visitors at the heart of everything we do, we plan to drive sustainable growth for our shareholders. ITE strives to run the best shows and offer the best service to its customers throughout the world, regardless of location. The Group’s focus on a product-led strategy will see ITE focus on events that are market leading or have a clear path to become number one in their sector.

Following the announcement of our TAG programme a year ago, our early TAG initiatives are progressing according to plan, within budget and already driving strong organic revenue growth. 2018 is about rigorous attention to detail and execution of our plan.

The TAG Programme comprises of three pillars of strategic activity to drive revenue and accelerate growth.

  • Create a scalable platform to generate real organic growth;
  • Actively manage our portfolio; and
  • Make selective product-led acquisitions.

Create a scalable platform
Organic revenue growth is being delivered by directing TAG investment towards five transformational levers by creating best practice functions and teams, investing in show operations, building capability and talent, driving a performance culture and building and maintaining a fit for purpose IT infrastructure and systems. 

Creating a strong operational Head Quarters in order to instil best practice across each area of our business is imperative to our transformation.  Having recruited the Heads of Best Practice we now have the team in place to deliver our transformation.  To ensure that our shows are consistently run at the same level of excellence anywhere in the world we have implemented the ‘ITE way’ and rolled out multiple best practice initiatives following the launch of our ‘Events Best Practice’ blueprints. We are committed to rolling out blue prints for every activity associated with running a successful events business.

Our main focus for TAG in 2018 is on content, lead generation and customer service. During the period, ITE has started to deliver events with much richer content in order to attract new visitors and drive retention. Initiatives have had an immediate impact. For example, EMITT, the East Mediterranean International Tourism and Travel Exhibition show grew double digit revenues on like-for-like basis and rebooked 45% of 2018 revenues for the 2019 event onsite. This is a significant achievement as many of the customers are national tourist boards whose budgets are typically only set later in the calendar year. Our focus on onsite rebooking at a number of Core events continues to strengthen our sales visibility.

To ensure the Group becomes more efficient, work is underway to put in place common systems to deliver a better service across the world to ITE’s customers. A new CRM and HR system is set to be launched this year with a new marketing system to be rolled out over the next 18 months, while we are in the early stages of designing our new global finance system. 

Clear progress has been made during the first half of the year across the five levers and the Group is on track with its 2018 milestones:

Transformational Lever
 
Benefit
 
2018 Milestones
 
Create best practice functions and teams
 
Deliver best-in-class processes implemented globally across the Group, greater efficiency via standardised processes, a more structured and accountable leadership, and a globally consistent ‘ITE way’ driving efficiency and greater attendee experience
 
  • Completed the design of the ‘ITE way’
  • Implementation has begun of the ‘ITE way’
Invest in show operations Enhance customer retention and exhibitor reach, obtain enriched data insights and improve operational efficiency

 
  • Regional customer success teams have been started
  • Dedicated regional content teams have been formed
  • Implementation of value-based pricing methods has been started
  • Show ‘blueprints’ have been rolled out
  • New show content has begun to be deployed in Core shows e.g. MITT, MosBuild
Build capability and talent
 
Attract and retain talent, develop internal capabilities, and establish the right capabilities to drive business and adapt to market changes
 
  • Dedicated specific training programmes have been rolled out for Sales teams
  • All key Regional Directors have been recruited
Drive a performance culture
 
Create a values-driven organisation that encourages high performance and rewards success and talent, building a winning team with an aspirational culture
 
  • Standardisation of performance management is ongoing
Build and maintain fit for purpose IT infrastructure and systems
 
Create a global IT function and infrastructure that can support the requirements of a flexible, mobile and highly effective workforce that operates globally, but delivers locally, and supports and enables the ‘ITE way’ of working
 
  • Integrated sales and marketing systems have been launched
  • Systems design and development has been completed for Marketing and HR and in the early stages of design for Finance
  • Systems to be deployed in phased waves

 


 


 

















Actively manage the portfolio
The Group continues to manage its portfolio by implementing a more rigorous approach to the allocation of capital. Under current management, since October 2016, in line with the aims of the TAG programme, we have discontinued 59 less profitable events as we continue to focus on our Core events. Despite these closures, revenues have grown.

Post period end, the Group recognised a profit on disposal, having sold TradeLink, the owner of Metaltech, the metalworking exhibition in Malaysia, to UBMMG Holdings Sdn. Bhd., a subsidiary of UBM plc for a total cash consideration of MYR 23m (£4.2m). This transaction marks a further step towards this second element of TAG to manage our portfolio of events and the proceeds will be reinvested into the Group. 

Having deliberately segmented our business into Core and Non-Core, management is able to increase its focus on events that present the greatest opportunities whilst reducing distraction from smaller events. The Group continues to apply the transformational levers to its Core events to realise their full potential and each segment of the portfolio requires a different degree of focus and different transformational levers to maximise its growth.

In line with its product-led strategy, the Group will continue to pro-actively review its portfolio on an ongoing basis and will review its options if too much time or investment is involved to deliver expected target growth.

Product-led acquisitions
The third TAG pillar is for the Group to make selective product-led acquisitions to accelerate growth in line with its strict M&A criteria. Each opportunity will be carefully reviewed, but will not be limited to any particular geography as the Group aims to run the best shows in the best industries anywhere in the world. These product led acquisitions would also benefit from the best practice teams that are now in place so that standardisation of processes would drive further organic growth post acquisition.

A pipeline of product-led opportunities is building, but the Group will only proceed if such opportunities meet most of the following criteria:
  • Scalability – in sectors with high growth potential
  • A distinct customer value proposition – serving a clear part of an industry sector
  • Position in attractive markets for events – serving a high growth underlying market
  • Evidence of strong organic revenue growth and profit margins
  • Potential to roll out internationally – dependent on the product
  • Earnings accretive – offering a good return on invested capital
The Directors believe that the Ascential Exhibitions Business is an attractive, high-quality portfolio of ‘must-attend’ exhibitions. The Acquisition aligns with ITE’s continuing TAG Programme and specifically its strategy of making product-led acquisitions of scalable events brands which are seen as offering strong growth potential under ITE’s ownership.

The proposed acquisition will diversify ITE’s exposure to some end-market verticals such as education technology and coil winding, electric motor and transformer manufacturing technologies that the Directors believe are attractive and supported by structural growth drivers, creating a more balanced portfolio of events.

The proposed acquisition will also diversify ITE’s geographic footprint, giving rise to further opportunities for growth. In particular, the Directors believe that following the proposed acquisition, Bett and CWIEME will benefit from the leveraging of ITE’s wider geographic footprint and existing infrastructure, providing geo-cloning opportunities.

Outlook
The TAG programme is delivering early benefits with improved financial performance from our Core events delivering like-for-like volume, revenue and headline PBT growth for the first time in four years.

Cash conversion remains strong and the Group enters the second half with high visibility of revenues having contracted £144m of revenue for the current financial year as at 11 May 2018, representing circa 89% of market expectations for the full year.  As a result of our focus on forward bookings, the Group has also already contracted £31m of forward bookings for FY2019, representing 19% of consensus revenue. This is up 31% on a like-for-like basis and the improved level of bookings partly reflects the Group’s focused sales initiatives on Core events, in line with its strategy.

The like-for-like growth and cash conversion have allowed management to invest £1.5m more in future period events than at this stage last year.

The combination of good progress on TAG and the proposed acquisition of Ascential Events Limited - a portfolio of market leading products that the management of ITE have known for a long time and that fit well with our strategy means that ITE is taking significant steps towards realising 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.



Mark Shashoua
Chief Executive Officer

>Download Interim Report (PDF)
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> Interim results and acquisition update presentation (PDF)
> Video: Interim results and acquisition update (video)