Trading Update and Outlook
The key remaining events for Tarsus for 2016 are tracking in line with our expectations and forward bookings for the Group's major events in 2017 remain strong.
Our current forecasts for 2017 are predicated on a US dollar exchange rate to sterling of $1.35. If the weakness in sterling continues at current market rates, this would have a material positive impact on the expected financial results for 2017. Due to foreign exchange hedges taken out earlier in the year the financial results for 2016 are not materially impacted by changes in the US dollar exchange rate. Excluding the movements in the exchange rate, the underlying performance in the business continues to be strong.
Intex
In the period since the last trading update Tarsus has made a bolt-on acquisition, acquiring 100% of the issued share capital of PNO Exhibition Investment (Dubai) Limited (“PNO”) from Istithmar P&O Estates FZE. PNO holds a 50% interest in Shanghai Intex Exhibition Co., Limited (Intex), which runs a portfolio of events in Shanghai, including Music China (Instruments), CES Asia (Consumer Electronics) and Hortiflorexpo IPM (Flowers).
Douglas Emslie, Tarsus Group Managing Director, said:
“We expect positive performances from our remaining shows this year and the Group is confident of delivering a good result from our diversified portfolio for the full year. Bookings for our larger biennial events in 2017 remain strong and the financial performance of the Group in 2017 should benefit from foreign currency tailwinds.
“We continue to drive our “Quickening the Pace” strategy through organic growth, replications and bolt-on acquisitions. Intex is an exciting addition to our portfolio of events in Shanghai and brings leading events in China into the Group.”