Strong organic growth, led by China
Financial results
|
|
H1 2018 |
H1 2017 |
H1 2016 |
|
Revenue (£m) |
35.6 |
39.8 |
27.0 |
|
Like-for-like revenue growth |
12% |
4% |
11% |
|
Adjusted profit before tax* (£m) |
5.8 |
6.8 |
4.0 |
|
Loss before tax (£m) |
(1.3) |
(1.4) |
(3.1) |
|
Adjusted EPS (pence) |
2.8 |
3.5 |
2.8 |
|
Basic EPS (pence) |
(3.2) |
(3.2) |
(3.1) |
|
Dividend (pence) |
3.3 |
3.0 |
2.7 |
|
Net Debt (£m) |
94.7 |
85.3 |
57.3 |
Financial highlights
· Revenue of £35.6m up 32% against 2016
· Group like-for-like revenues* up 12%
· Adjusted profit before tax of £5.8m up 45% against 2016 (statutory loss before tax £1.3m)
· Adjusted earnings per share of 2.8p unchanged against 2016 (statutory loss per share 3.2p)
· Interim dividend of 3.3p per share up 10% on 2017
Operational highlights
· Buyer/visitor growth across the portfolio of 13%, led by Chinese events in first half
· Launch of Labelexpo Southeast Asia – one of the Group's strongest ever launches and profitable in its first edition
· Bolt-on acquisitions in Mexico and the US (Connect) and the purchase of an additional 25% minority interest in SIUF (China)
· Strong replications programme delivering accelerated returns
Current trading and outlook
· Forward bookings for 2018 up 10% on a like-for-like basis (adjusted for biennials and acquisitions)
· 43 launch portfolio events scheduled to be held in 2018, of which 17 are new this year
· Well positioned to deliver encouraging growth in 2018, in line with expectations
Douglas Emslie, Group Managing Director, said:
“An integral part of our strategy for organic growth is to invest in and expand our leading brands globally through our growing launch programme. We are delighted by the performance of the first edition of Labelexpo Southeast Asia, demonstrating the strength of the Labelexpo brand.
“We have traded well in the first half, forward bookings are well up and we remain confident of delivering a strong performance in 2018 in line with the Board's expectations.”
Overview
2018 has seen the launch of the next phase of the Quickening the Pace strategy – “QTP2: driving scale and momentum”, a programme that builds on the original QTP strategy. The Group will deepen its presence in higher growth markets, look to maximise the scale of existing events and acquire new platforms for growth with the aim of continuing to drive strong shareholder returns.
Financial review
Group revenue for the period was £35.6m (2017: £39.8m). Adjusting for acquisitions and biennial events, underlying organic revenue growth of 12% was achieved in the smaller first half.
Adjusted profit before tax was £5.8m (2017: £6.8m; 2016: £4.0m), reflecting strong revenue growth, primarily in our Chinese portfolio. The Group incurred exceptional costs of £0.4m (2017: £0.6m) in respect of completed and pending corporate transactions. The Group also incurred an amortisation charge of £3.3m (2017: £3.7m). Other adjusting items are set out in note 6 to the financial statements below. Loss before tax was £1.3m (2017: £1.4m; 2016 £3.1m).
Adjusted earnings per share were 2.8p (2017: 3.5p). Basic loss per share was 3.2p (2017: 3.2p).
An interim dividend of 3.3p per share (2017: 3.0p) has been declared and will be paid on 11 January 2019 to Shareholders on the Register on 30 November 2018. The Group will continue to offer a scrip alternative to qualifying shareholders.
Operating cash inflow in the first half was £2.4m (2017: £16.1m). As expected net debt at 30 June 2018 increased to £94.7 million (2017: £85.3m), driven primarily by acquisitions. The Group remains on target to return to its stated long-term target range of 1.5 – 2.0x net debt: EBITDA by the end of the year.
Corporate activity
Tarsus and EJ Krause jointly acquired 60% of Expo Restaurantes, the leading restaurant show in Mexico which successfully ran its first event under our ownership in June.
In the US, Connect acquired 80% of eTourism Summit, an event linking travel destination marketing executives with the latest products and services in digital marketing. The travel industry is one of the largest consumers of digital media.
In China, Tarsus has acquired a further 25% in SIUF, taking its overall stake to 75%, in line with our strategy to acquire minorities where appropriate.