ITE Group plc Rises Strongly After Beating Profit Forecasts

Trade exhibitions company ITE Group plc (LON: ITE) put on 38 events in the most recent quarter.

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Mark Stones (TMFMumbojumbones) joined The Motley Fool in 2014 and initially worked as a writer for Fool.co.uk, before joining the Fool’s analyst programme. Mark earned a BA in English from Loughborough University. Although he spends more time reading annual reports than Russian literature these days, he still appreciates a novelist’s antipathy toward the accepted view, which is a useful attitude when trying to sniff out hidden gems on the stock market. His approach to investing has been largely influenced by the principles of Warren Buffett and Peter Lynch. He also takes a special interest in the work of healthcare companies. Outside of investing, Mark plays guitar, enjoys good writing and has a guilty passion for combat sports.

Published 1 October, 2014 10:27 am BST

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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.