News blog
Expomedia
- BY: Andrew Hore |
- POSTED: 22/09/2008 |
Expomedia is selling its stake in its German joint venture in order to focus on its main growth markets.
Expomedia is a conference and exhibitions organiser whose main markets are Russia, India and Poland. It also has a UK business that includes an exhibitions-focused publishing business.
German publisher Gruner & Jahr wants to grow the German business but Expomedia wants to concentrate its investment on the faster growing markets. These operations have a negligible balance sheet value so the disposal should generate a profit and cash to help cut net debt - €8.6m, excluding finance leases of €19.5m.
Expomedia also plans to sell its German exhibition centre and it is trying to offload its Indian venue. It will retain the Warsaw venue but wants to reinvest the cash in additional exhibitions and conferences.
Revenues from continuing operations grew 19% to €18.5m in the six months to June 2008. Expomedia invested in building up its Russian and Indian sales teams so costs increased in the period. Pre-tax profit moved ahead from €75,000 to €570,000 but this was boosted by foreign exchange gains.
India is growing fastest but it is still small compared to the other core businesses.
The main UK business organises Homebuyer events. Competitors are falling by the wayside and Expomedia believes that its events will hold up reasonably well despite the weak housing market. Next year it will hold Homebuyer events in Russia and Dubai.
Expomedia shares slipped 5p to 41.5p, valuing the company at £20.9m.
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