Brokers take a shine to Tarsus as LabelExpo proves 'huge success'

Friday, Sep 30 2011 by
5
Brokers take a shine to Tarsus as LabelExpo proves huge success

Amongst the talk of economic and financial meltdown that dominates the newspaper headlines, it's interesting to see at least one barometer of European economic activity suggesting that all is not as gloomy as the media might make out. Labelexpo Europe, the biennial trade show operated by AIM quoted events group Tarsus, is said to have been a major success this year, with few signs that macro-economic concerns have dulled enthusiasm for Europe’s largest gathering for the labelling industry. After paying visits to the show in Brussels this week, brokers Investec and Singer Capital Markets both issued updates to clients reiterating that they saw Tarsus (LON:TRS) as a buy on current market weakness, with Investec seeing upside of 30% on the current share price.

Exhibitor numbers at the show – from 150 countries – have increased by around 8 percent to 550, floor space sales are up 6 percent to approximately 30,000 square metres and visitor numbers are also up by 6 to 8 percent. As a result, revenue from the European show is expected to increase by 10 percent – proving a major boost to Tarsus, which counts its 10-strong international Labelexpo franchise as 20 percent of total revenue. Among the highlights this year, technology group Hewlett Packard, which was not even a customer of Labelexpo 10 years ago, booked double space and is now the exhibition’s largest customer.

This year, the Brussels-based event saw the introduction of Digital Print Workshops, which pitched three printing technologies – dry toner, liquid toner and inkjet – against each other during live machine demonstrations. The show also included a new feature dedicated to package printing, reflecting the show organisers’ response to long term growth trends in the labelling industry.

Business Week has described LabelExpo as "the only truly global brand in the exhibition industry" and the success of this year’s show is likely to add an extra incentive for Tarsus to expand the franchise even further. In an interview with Stockopedia in June, chief executive Douglas Emslie said the company’s recent acquisition of a major stake in an event business in Turkey offered an opportunity to take its brands, including Labelexpo, into the country.

 In a note to investors, broker Singers said it had been “significantly impressed with both the execution of the event and the sales strategy and process that…

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Tarsus Group plc is an integrated media group primarily engaged in exhibitions, along with associated conferences, publishing, education and Internet activities. The principal activity of the Company is the holding of investments. The Company operates through three segments: EMEA, Americas, and Asia. The main activities of all segments are the production of exhibitions supported by other media activities related to those exhibitions. Its key brands include the Dubai Airshow, Labelexpo, OFFPRICE, Zuchex, AAITF and Tarsus Medical. more »

LSE Price
262p
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Mkt Cap (£m)
326.3
P/E (fwd)
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4.3



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