Tarsus (LON:TRS), the business-to-business events and media group, is within touching distance of achieving its strategy of delivering 50 percent of revenues from fast growing emerging markets by 2013. According to managing director Douglas Emslie, the group is now intent on bedding down new acquisitions and consolidating its expansion work to deliver greater earnings for shareholders.
Despite macro economic headwinds that have buffeted the b2b business events sector in recent years, Tarsus has grown rapidly by reducing its exposure to slow growth European territories such as France. Instead, deals in Turkey and China, together with an improving performance in its US business, have underpinned revenue growth and given the group a platform to expand further. Tarsus has shown itself to be a strongly cash generative business and while it trades on a premium to the market on a forward P/E of 12x earnings the market appears willing to pay up for the growth, emerging market exposure and strong dividend yield.
Tarsus traded in line with expectations in the 10 weeks to May 14. Of note, forward bookings up to the end of December 2012 stand at 65% of anticipated full year revenues, compared to 61% at the same time in 2010 (on a comparable biennial basis). Meanwhile, bookings are tracking 15% ahead of last year (again, adjusted for biennial events). Those figures are a further boost to Tarsus’ record full year revenues last year, which grew by 42 percent to £67.1 million while adjusted pre-tax profits were up by 77 percent to £16.8 million.
Tarsus’ focus on emerging markets took a significant step in June 2011 with the £10 million purchase of a stake in one of Turkey’s largest events businesses, IFO. That was followed in March this year with a £15 million deal for a 70 percent stake in Turkey’s Life Media and, more recently, a joint venture in China. All the acquisitions are understood to be performing strongly – reinforcing Douglas Emslie’s view that the company has got its strategy right...
Douglas, Tarsus has seen some significant changes over the last year. How satisfied are you with the way the business is performing?
There has been a lot of activity! Against a backdrop of a very challenging environment we were very pleased and it really demonstrates the execution of our strategy. Two years ago we set out…
