WORLD - Tarsus Group has turned its sights on a new project 'Quickening the Pace' after achieving its target of deriving half its revenues from emerging markets by 2013.
In a trading update for the 12 months ended 31 December 2012, the international business-to-business mediagroup said the new initiative targets further growth through selective bolt-on acquisitions in the US and emerging markets, accelerating earnings per share growth, organic growth from the existing portfolio and implementing tight cost control.
The group accomplished its Project 50/13 target to derive 50 per cent of its revenue from emerging markets by October 2012, more than a year ahead of schedule. This followed Tarsus bolstering its Turkish business in 2012 with the 75 per cent purchase of CYF, the ornamental flowers, plants and landscaping exhibition company, and acquiring 70 per cent of Life Media.
Ideal Home, the first Life Media exhibition under Tarsus' ownership, was held in April 2012 and performed strongly, with revenues up 50 per cent on the 2011edition. This was followed by Life Media's largest event, Zuchex, in September, which saw revenues rise 12 per cent.
CYF held its first event under Tarsus's ownership, Eurasia Plant Fair, in December and increased revenues by 30 per cent.
In December 2012, Tarsus completed its purchase of 50 per cent of Chinese automotive aftermarket fair GZ Auto.
In Dubai, MEBA, the biennial business jet exhibition, was held in December 2012 at the new Al Maktoum International Airport at Dubai World Central, which will host the 2013 Dubai Air Show. MEBA achieved record results with revenues up 19 per cent and visitors up a fifth on the previous edition.
The group's larger events in the first quarter of 2013, Off–Price in Las Vegas, Ideal Home in Istanbul and Gulf Pack and Print in Dubai, are expected to produce revenues ahead of their previous editions.
Group MD Douglas Emslie said the business will now focus on growing organically. “We will make selective acquisitions, where we can add value”, he told EW. “We won’t just be buying for the sake of buying.”
Adjusted pre-tax profits for the year ended 31 December 2012 are expected to be in line with the board'sexpectations. Tarsus claims the results are set to show that with adjustment for biennial events, organic revenue growth has increased by around 13 per cent. Cash flow remained strong with net debt on 31 December 2012 at approximately £16m.
“This year we will have the huge biennial Dubai Air Show and Labelexpo, along with our continuing work in emerging markets, so there are many reasons to be positive in 2013,” Emslie added.
The group expects to announce its final results for the year ended 31 December 2012 during the week starting 4 March 2013.
However the group remains cautious in its outlook for France, where the macro economic climate remains uncertain. Emslie added that revenues were down one per cent in France in 2012.
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