Released: 29/07/2009
com:20090729:Rnsc4322W
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RNS Number : 4322W
Tarsus Group PLC
29 July 2009
29 July 2009
Tarsus Group plc
Interim results for the six months to 30 June 2009
Record First Half Performance
Tarsus Group plc ('Tarsus' or 'the Group' or 'the Company'), the international
business-to-business media group is pleased to announce record results for the
six months to 30 June 2009.
Operational Summary
During the first half of 2009, we have continued to focus on driving revenues,
minimising costs and increasing the attendances at our portfolio of exhibitions.
As a result, Tarsus achieved organic revenue growth of 5% in the first half of
this year and grew the attendance at its exhibitions by an average of 5%.
Contracted revenues for 2009 stand at 86% (2008: 82%) of our internal
projections for the full year.
Divisional Highlights
* Strong growth from Emerging Markets
* Good contribution from France
* Resilient performance from the USA
Financial Highlights
2009 2008 2007 Change*
%
Group Revenue (£ million) 19.7 14.5 11.3 74%
Like-for-like revenue growth 5% 12% 12% -
Adjusted Profit before tax (£ million) 1.7 0.9 1.2 42%
Adjusted EPS (p) Interim Dividend 1.8 0.8 1.5 20%
2.0p 2.0p 1.5p 33%
* Increase against 2007 biennial comparative period
The Directors have declared an unchanged interim dividend of 2.0 pence per
share.
Following the recent appreciation of Sterling, the Board has taken a prudent
approach and has adjusted its 2009 budgeted rates from 1 July 2009 to 1.70 US$/£
and 1.20 E/£. Tarsus continues to expect a positive impact from currency on the
trading performance for 2009 compared with 2008.
Neville Buch, Chairman of Tarsus, said:
"Despite operating in an environment of very challenging trading conditions,
Tarsus has performed well during the first half of the year. The Group continues
to benefit from the considerable experience of a first class management and its
consistent strategy of developing a high quality portfolio of market leading
events.
As was highlighted in our pre-close trading update on 1st July, the Group's
results are heavily weighted towards the second half of the year when the
majority of its exhibitions occur. Revenues for Tarsus's two largest
exhibitions, the Dubai Airshow in November and Labelexpo Europe in September
remain comfortably ahead of the comparable events in 2007.
Group contracted revenues for 2009 stand at 86% (2008: 82%) of our internal
projections for the full year. Trading continues to be in line with the Board's
expectations and we anticipate a very satisfactory outcome for 2009."
Glossary
Adjusted profit before tax:
Calculated using profit before tax adjusted for share option charges,
amortisation charges and tax on profit from joint ventures.
Adjusted EPS:
Calculated using profit after tax attributable to equity shareholders adjusted
for share option charges, amortisation charges and tax on profit from joint
ventures.
Like-for like revenue:
Calculated at constant exchange rates adjusted for biennial events, after
excluding acquisitions impacting for the first time in the period and
non-recurring products and items.
For further information please contact:
Tarsus Group plc:
Douglas Emslie, Group Managing Director 020 8846 2700
Ashley Milton, Group Finance Director 020 8846 2700
Media:
Matthew Moth, Madano Partnership 020 7593 4000
Investor Relations:
Neville Harris, IR Focus 020 7593 4015
Stephen Scott, Scott Harris 020 7653 0030
The company will be hosting a presentation to analysts at 12.30pm today at the
offices of KBC Peel Hunt. A webcast of the presentation will be made available
on Tarsus's website (www.tarsus.com) from 9.30am tomorrow.
CHAIRMAN AND MANAGING DIRECTOR'S STATEMENT
INTRODUCTION
The first half of 2009 has been another period of good progress for Tarsus, with
a particularly positive performance from our Emerging Markets division. Our
established products, backed by strong brand recognition, have shown their
resilience in very challenging trading conditions.
Notwithstanding the economic downturn, exhibitions remain a vital
business-to-business sales channel, facilitating the development of
relationships between buyers and sellers. In an environment where expenditure is
being closely controlled, exhibitions are continuing to increase their overall
share of marketing budgets.
Tarsus is focussed on delivering the highest quality products to its customers.
The strength of the Group's brands, combined with the "need to have" nature of
exhibitions, is driving our financial performance. Over the last ten years the
Group has developed through a combination of organic growth and targeted
acquisitions in key business-to-business sectors and geographies. This strategy,
which has been successfully implemented by a first class management team, has
produced a portfolio of high quality, geographically diversified assets with
nearly all profits being generated outside the UK.
FINANCIAL RESULTS
A record performance
First half Group revenue increased by 36% to £19.7 million (2008: £14.5
million), with underlying like-for-like growth of 5%.
Profit before tax was £0.4 million (2008: £0.2 million). Adjusted profit before
tax was £1.7 million, an increase of almost 100% over the previous year (2008:
£0.9 million).
Basic loss per share was 0.1p (2008: 0.1p) while adjusted earnings per share
were 1.8p (2008: 0.8p).
Operating cash flow continued to be very strong with £3.4 million generated in
the period (2008: £1.3 million). Operating cash conversion as a result was 196%,
reflecting the difference in timing between cash collection and profit
recognition of our large biennial events. This relationship has been exaggerated
in the first half of the year where cash has been collected in advance for the
large Labelexpo Europe and Dubai Airshow exhibitions.
Debt & financing
On 30 June 2009, net debt stood at £34.8 million, in line with our expectations.
The Group has agreed an adjustment to its future bank covenants to give
additional flexibility and facilitate faster growth.
On 9 June 2009, the Group announced a recommended offer for the outstanding
share capital of CapRegen plc that it did not already own, with the offer being
declared unconditional following Court approval on 22 July. Tarsus has now
incorporated CapRegen's investment portfolio within its own assets and since 22
July has used CapRegen's cash to reduce Group indebtedness by a net £3.2
million.
On 6 July 2009, the Group announced the successful placing of 3,076,923 new
ordinary shares of 5 pence each, raising additional net cash of £2.7 million.
On 1 July 2009, the Group paid the final earn-out payment of $5.7 million for
the acquisition of F&E, our Dubai business. This is the last material earn-out
payment owed by the Group for historical acquisitions.
The Directors have declared an interim dividend of 2.0p per share (2008:2.0p).
The interim dividend will be paid on 2 October 2009 to Shareholders on the
Register of Members of the Company on 28 August 2009. We will continue to offer
a scrip alternative.
OPERATING REVIEW
Summary of Results
USA Europe Emerging Markets
£ million 2009 2008 2007 2009 2008 2007 2009 2008 2007
Revenue 4.6 4.1 3.8 9.7 9.2 6.9 5.4 1.2 0.6
Adjusted Profit Before Tax 1.4 1.3 1.2 1.0 1.3 0.8 0.7 (0.4) 0.1
United States
On a reported basis, US revenues increased by 12% in the first half, while
adjusted profits before tax increased by 8%. On a like-for-like basis, revenues
were 3% lower, while operating profits rose by 1%.
Off-Price
Tarsus has been the owner and organiser of exhibitions for the Off-Price
(discount) clothing and accessories industries in Las Vegas since 1999. These
events are unique to the US and are part of Las Vegas Fashion Week. Each event
attracts over 12,000 buyers and the exhibitions are supported by Off-Price
Apparel, our premier trade magazine for the industry.
Against a background of a severely depressed retail environment in the US, the
February Off-Price show produced a creditable performance with strong attendee
numbers and buying activity. Lower US Dollar revenues were more than compensated
for by the weakness of Sterling resulting in strong growth in reported revenues.
Medical
Through the acquisition of MCII in 2006, Tarsus owns and manages global events
in the field of anti-ageing and preventive medicine. These events comprise
conferences, educational fellowships and exhibitions.
The major medical event in the first half was held in April in Orlando. Like the
Las Vegas event in December 2008, there was some weakness in exhibitor revenues
but the broad offering of the event meant that there was increased attendance by
doctors at the educational and conference elements. Overall, in the first half
MCII revenues rose 3% (in US Dollars), driven by higher margin educational
content resulting in a strong increase in profitability.
The next two US events are, firstly, the August Off-Price show where current
indications are that it is on track to be ahead of the February 2009 show and
comparable with the August 2008 show - a testament to its defensive qualities.
Secondly, the San Jose Anti-Aging medical event in September is also on track to
be ahead of the comparable 2008 event, which was held in Washington DC.
Europe
France
The French exhibition market is the second largest in Europe, after Germany.
Tarsus owns and manages a portfolio of exhibitions in five key sectors - IT,
marketing, education, facilities management and clothing accessories and also
publishes a portfolio of related trade directories.
Our largest event in the period, the newly co-located IT and Services
exhibitions in Paris in March, enjoyed strong visitor attendance and produced
revenues on a combined basis ahead of 2008. The other key event was the Modamont
clothing accessories show in February, which produced revenues marginally lower
than the corresponding 2008 event.
Overall in the first half, Euro revenues in France increased by 2%. The
restructuring carried out in 2008, with a consolidation into one office and a
shift in the balance of personnel towards sales, contributed towards a strong
underlying rise in profitability.
There are a number of important exhibitions in France in the second half
including Modamont and Heavent (services to the events industry). While the
Group still expects a robust performance, the recent trend in France has been
for bookings to materialise later than previously with a corresponding reduction
in forward visibility.
Labelexpo Europe
Tarsus owns the world's leading exhibitions for the Labeling industry through
the long-established Labelexpo brand. Biennial exhibitions take place in Europe,
the USA, China and India supported by Labels and Labeling, the world's leading
related trade magazine.
There was one significant and successful European launch in the period - the
Digital Label Summit - which was held in Barcelona in March. Looking forward,
the key event in Europe in the second half is Labelexpo which returns to
Brussels in September. It is the second largest exhibition in the Group's
portfolio and is currently tracking to be a record event, well ahead of the 2007
edition.
UK
In the UK, Tarsus owns Tarsus Online Media which operates in the UK, USA, France
and Germany with online products in the events, venues, gifts and online
recruitment sectors.
Tarsus Online Media, which represents 4% of Group revenue, produced a strong
result in 2008 but as a predominantly advertising-led business it struggled to
make headway in the first half and revenues declined 17%.
Emerging Markets
There was a very strong performance from Emerging Markets, with US Dollar
revenues up 29% on a like-for-like basis, comprising 28% of Group revenue in the
first half.
Following the acquisition of F&E in 2007, Tarsus owns the Dubai Airshow (one of
the top three airshows in the world) and has been launching new exhibitions into
the region. The Group also has a joint venture in China with a portfolio of 24
exhibitions and the travel event COTTM. The Labelexpo brand has been replicated
into China, Latin America and India.
The principal driver was our Dubai business with a record performance from our
Gulf Pack & Print exhibitions. Also of note were the successful launches of MRO
(aircraft maintenance, repair and overhaul) and the Dubai Label Summit. Our
educational exhibition, GESS, also had a successful second edition. Attendances
were strong across the board.
Looking forward, there are two key events in the second half. The Dubai Airshow,
the Group's largest exhibition, takes place in November where revenues are
tracking comfortably ahead of the 2007 edition. Labelexpo Asia takes place in
Shanghai in early December and this event remains on course to be ahead of the
2007 edition and a record show.
OUTLOOK
Despite operating in an environment of very challenging trading conditions,
Tarsus has performed well during the first half of the year. The Group continues
to benefit from the considerable experience of a first class management and its
consistent strategy of developing a high quality portfolio of market leading
events.
As was highlighted in our pre-close trading update on 1st July, the Group's
results are heavily weighted towards the second half of the year when the
majority of its exhibitions occur. Revenues for Tarsus's two largest
exhibitions, the Dubai Airshow in November and Labelexpo Europe in September
remain comfortably ahead of the comparable events in 2007.
Group contracted revenues for 2009 stand at 86% (2008: 82%) of our internal
projections for the full year. Trading continues to be in line with the Board's
expectations and we anticipate a very satisfactory outcome for 2009.
Neville Buch Douglas Emslie
Chairman Group Managing Director
INDEPENDENT REVIEW REPORT TO TARSUS GROUP plc
We have been engaged by the company to review the condensed set of financial
statements in the half yearly financial report for the six months ended 30 June
2009 which comprises the Condensed Consolidated Interim Income Statement,
Condensed Consolidated Interim Statement of Comprehensive Income, Condensed
Consolidated Interim Statement of Financial Position, Condensed Consolidated
Interim Statement of Changes in Equity, Condensed Consolidated Interim Statement
of Cash Flows and the related notes. We have read the other information
contained in the half yearly financial report and considered whether it contains
any apparent misstatements or material inconsistencies with the information in
the interim set of financial statements.
This report is made solely to the company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Directors' responsibilities
The half yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 2, the annual financial statements of the group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half yearly financial
report has been prepared in accordance with International Accounting Standard
34, 'Interim Financial Reporting', as adopted by the European Union.
Our responsibility
Our responsibility is to express to the company a conclusion on the interim set
of financial statements in the half yearly financial report based on our
review.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure and Transparency Rules of the United
Kingdom's Financial Services Authority.
PKF (UK) LLP
28 July 2009 London, UK
CONDENSED CONSOLIDATED INTERIM INCOME STATEMENT
For the six months ended 30 June
Notes 2009 2008
£000 £000
Revenue 7 19,698 14,466
Operating costs (18,730) (13,659)
Operating profit 968 807
Share of profit of joint venture (post tax) 95 151
Finance income 1 3
Finance costs (638) (751)
Profit before taxation 426 210
Taxation expense 9 (150) (44)
Profit for the financial period 276 166
Loss for the financial period attributable to equity
shareholders of the parent company (53) (21)
Profit for the financial period attributable to minority
interests 329 187
276 166
Notes 2009 2008
Loss per share (pence) 10
- basic (0.1) (0.1)
- diluted (0.1) (0.1)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 June
Notes 2009 2008
£000 £000
Profit for the financial period 276 166
Other comprehensive income:
Foreign exchange translation differences 13 (9,504) (1,468)
Revaluation of trade investment 118 218
Other comprehensive income (9,386) (1,250)
Total comprehensive expense for the period (9,110) (1,084)
Attributable to:
Equity holders of the parent company (9,439) (1,271)
Minority interest 329 187
Total comprehensive expense for the period (9,110) (1,084)
CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION
Notes 30 June 30 June 31 December
2009 2008 2008
£000 £000 £000
Unaudited Unaudited Audited
NON-CURRENT ASSETS
Property, plant and equipment 1,108 948 1,221
Intangible assets 11 96,729 84,928 107,036
Interests in joint ventures 706 1,443 1,832
Other investments 1,051 1,010 849
Deferred tax assets 1,845 3,525 1,897
101,439 91,854 112,835
CURRENT ASSETS
Trade and other receivables 13,794 15,348 25,165
Cash and cash equivalents 8,540 1,400 7,692
22,334 16,748 32,857
CURRENT LIABILITIES
Trade and other payables (20,621) (9,179) (29,395)
Deferred income (23,788) (17,660) (23,259)
Bank overdrafts - (3,763) -
Interest bearing loans and borrowings (7,076) (6,512) (7,074)
Liabilities for current tax (2,303) (1,324) (1,751)
(53,788) (38,438) (61,479)
NET CURRENT LIABILITIES (31,454) (21,690) (28,622)
TOTAL ASSETS LESS CURRENT LIABILITIES 69,985 70,164 84,213
NON-CURRENT LIABILITIES
Other payables (5,308) (4,896) (5,443)
Deferred tax liability (4,591) (5,902) (5,046)
Interest bearing loans and borrowings (32,208) (27,496) (34,581)
(42,107) (38,294) (45,070)
NET ASSETS 27,878 31,870 39,143
EQUITY
Share capital 3,111 3,056 3,095
Share premium account 172 45,546 -
Reserves (2,391) (4,090) 6,995
Retained earnings 25,915 (13,071) 28,311
Issued capital and reserves attributable to equity holders
of the parent 26,807 31,441 38,401
MINORITY INTEREST 1,071 429 742
TOTAL EQUITY 27,878 31,870 39,143
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY
Other reserves
Share Share Capital Foreign Retained Minority Total
Reorgan- Fair
capital premium isation redemption value exchange earnings interest
account reserve reserve reserve reserve
£000 £000 £000 £000 £000 £000 £000 £000
As at 30 June 2009:
Recognised foreign exchange losses for the period - - - - (9,504) - - (9,504)
-
Revaluation of trade investment - - - - 118 - - - 118
Total income and expense recognised directly in equity - - - 118 (9,504) - - (9,386)
-
Loss attributable to shareholders - - - - - - (53) - (53)
Total recognised income and expense - - - - 118 (9,504) (53) - (9,439)
Scrip dividend 7 100 - - - - - - 107
New share capital subscribed 9 72 - - - - - - 81
Share option charge - - - - - - 101 - 101
Dividend paid - - - - - - (2,444) - (2,444)
Minority interest profit for the period - - - - - - - 329 329
Net change in shareholders' funds 16 172 - - 118 (9,504) (2,396) 329 (11,265)
Opening equity shareholders' funds 3,095 - (443) 43 1,382 28,311 742 39,143
6,013
Closing equity shareholders' funds 3,111 172 6,013 (443) 161 (8,122) 25,915 1,071 27,878
As at 30 June 2008:
Recognised foreign exchange losses for the period - - - - (1,468) - - (1,468)
-
Revaluation of trade investment - - - - 218 - - - 218
Total income and expense recognised directly in equity - - - 218 (1,468) - - (1,250)
-
Loss attributable to shareholders - - - - - - (21) - (21)
Total recognised income and expense - - - - 218 (1,468) (21) - (1,271)
Scrip dividend 3 110 - - - - - - 113
New share capital subscribed 11 124 - - - - - - 135
Share option charge - - - - - - 85 - 85
Dividend paid - - - - - - (2,130) - (2,130)
Dividend paid to minority interests - - - - - - - (316) (316)
Minority interest profit for the period - - - - - - - 187 187
Net change in shareholders' funds 14 234 - - 218 (1,468) (2,066) (129) (3,197)
Opening equity shareholders' funds 3,042 45,312 - (443) 39 (2,436) (11,005) 558 35,067
Closing equity shareholders' funds 3,056 45,546 - (443) 257 (3,904) (13,071) 429 31,870
CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS
For the six months ended 30 June
2009 2008
£000 £000
Cash flows from operating activities
Profit for the period 276 166
Adjustments for:
Depreciation 255 132
Amortisation 1,143 510
Share option charge 101 85
Share of operating profit in joint venture (138) (228)
Taxation charge - joint venture 43 77
Taxation charge - other 150 44
Net interest 637 748
Operating cashflow before changes in working capital
and provisions 2,467 1,534
Decreasein trade and other receivables 10,490 196
Decreasein current trade and other payables (9,593) (432)
Cash generated from operations 3,364 1,298
Interest paid (266) (793)
Income taxes received/(paid) 1,109 (393)
Net cash from operating activities 4,207 112
Cash flows from investing activities
Interest received 1 3
Acquisition of property, plant and equipment (183) (391)
Acquisition of intangible assets (66) (75)
Acquisition of other investments (85) (904)
Deferred and contingent consideration paid (1,872) (2,779)
Net cash outflow from investing activities (2,205) (4,146)
Cash flows from financing activities
Drawdown/(repayment) of borrowings 1,748 (1,477)
Proceeds from the issue of share capital 81 135
Dividends paid to shareholders of parent company (2,210) (2,017)
Dividends paid to minority shareholders in subsidiary - (316)
companies
Net cash outflow from financing activities (381) (3,675)
Net increase/(decrease) in cash and cash equivalents 1,621 (7,709)
Opening cash and cash equivalents 7,692 2,840
Effect of exchange rate fluctuations on cash held (773) 381
Closing cash and cash equivalents 8,540 (4,488)
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
1. REPORTING ENTITY
Tarsus Group plc (the "Company") is a company incorporated in Jersey and
resident in Ireland. The condensed consolidated interim financial statements of
the Company as at and for the six months ended 30 June 2009 comprise the Company
and its subsidiaries (together referred to as the "Group") and the Group's
interest in jointly controlled entities.
The consolidated financial statements of the Group as at and for the year ended
31 December 2008 are available upon request at Metro Building, 1 Butterwick,
London W6 8DL.
2. STATEMENT OF COMPLIANCE
These condensed consolidated interim financial statements have been prepared in
accordance with International Financial Reporting Standard (IFRS) IAS 34 Interim
Financial Reporting. They do not constitute the Group's statutory accounts
within the meaning of Section 435 of the Companies Act 2006.
The interim financial statements should be read in conjunction with the
consolidated financial statements of the Group as at and for the year ended 31
December 2008 which were prepared under International Financial Reporting
Standards, as adopted by the European Union, and have been reported on by the
Company's auditors. The auditors' report was unqualified and did not contain a
statement under section 498 (2) or (3) of the Companies Act 2006.
The interim financial statements were approved by a duly appointed and
authorised committee of the Board of Directors on 28 July 2009. The interim
financial statements are unaudited but have been reviewed by the auditors as set
out in their report.
The Group has adopted IAS 1 (Revised) - Presentation of Financial Statements and
IFRS 8 - Operating Segments, for the first time in these Interim Financial
Statements.
3. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in these condensed consolidated
interim financial statements are the same as those applied by the Group in its
consolidated financial statements as at and for the year ended 31 December
2008.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
4. ESTIMATES
The preparation of consolidated interim financial statements requires management
to make judgments, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities, income
and expense. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies and the key sources of estimation uncertainty were the same as those
that applied to the consolidated financial statements as at and for the year
ended 31 December 2008.
5. FINANCIAL RISK MANAGEMENT
The Group's financial risk management objectives and policies are consistent
with those disclosed in the consolidated financial statements as at and for the
year ended 31 December 2008.
6. PROFIT AND LOSS ANALYSIS
The following analysis illustrates the performance of the Group's activities,
and reconciles the Group's profit, as shown in the condensed consolidated
interim income statement, to adjusted profits. Adjusted profit is presented to
provide a better indication of overall financial performance and to reflect how
the business is managed and measured on a day-to-day basis. The adjusted profit
excludes share option charges, amortisation of intangible assets, and taxation
on joint ventures.
Six months Six months
to 30 June to 30 June
2009 2008
£000 £000
Profit for the financial period after taxation 276 166
Add back:
Taxation charge 150 44
426 210
Add back:
Charge for share options 101 85
Amortisation charge 1,143 510
Taxation on joint ventures 43 77
Adjusted profit before tax 1,713 882
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
7. SEGMENTAL ANALYSIS
As at 30 June 2009, the Group is organised into three main operating segments -
Europe, USA and Emerging Markets. These segments are the basis on which the
Group reports its segment information for management purposes.
The main activities of all segments are the production of exhibitions,
conferences, magazines, directories, and online media.
The following table sets out the revenue and profit information for the Group's
operating segments:
Six months ended 30 June 2009
Emerging Central
Europe USA Markets costs Group
£000 £000 £000 £000 £000
Revenue 9,682 4,583 5,433 - 19,698
Profit/(loss) from operating activities 866 1,394 693 (1,985) 968
Net financing costs - - - (637) (637)
Share of profit from joint ventures 95 - - - 95
Profit/(loss) before tax 961 1,394 693 (2,622) 426
Amortisation of intangible assets - - - 1,143 1,143
Cost of share options - - - 101 101
Taxation on joint ventures 43 - - - 43
Adjusted profit before tax* 1,004 1,394 693 (1,378) 1,713
Six months ended 30 June 2008
Emerging Central
Europe USA Markets costs Group
£000 £000 £000 £000 £000
Revenue 9,164 4,064 1,238 - 14,466
Profit/(loss) from operating activities 1,029 1,322 (381) (1,163) 807
Net financing costs - - - (748) (748)
Share of profit from joint ventures 151 - - - 151
Profit/(loss) before tax 1,180 1,322 (381) (1,911) 210
Amortisation of intangible assets - - - 510 510
Cost of share options - - - 85 85
Taxation on joint ventures 77 - - - 77
Adjusted profit before tax* 1,257 1,322 (381) (1,316) 882
* Adjusted profit before tax represents Group profit before tax excluding share
option charges, amortisation of intangible assets and taxation on joint
ventures. This is the same measure as given in note 6.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (CONTINUED)
8. REVENUE AND COST RECOGNITION
Revenue and cost on events are recognised when an event is completed. Most of
the Group's major 2009 exhibitions take place in the second half of the year.
Revenue for future events of £23,788,071 is included in current liabilities,
£21,595,847 of which relates to events to occur in 2009 and the balance to
events in 2010.
9. INCOME TAX EXPENSE
The taxation charge for the six months ended 30 June 2009 is based upon the
estimated effective tax rate of 17% on underlying profit before tax (2008: 21%)