Tarsus Group Scores 14-percent Revenue Increase in 2011 Mid-year Results; Strong Second Half Forecasted
The first half of this year started off on a high note for U.K.-based Tarsus Group and looks to be even better going into the second half with the recent release of the company’s Interim Results ending June 30.
Overall revenue was $32 million, a 14-percent increase, compared with $28 million in 2010. Like-for-like revenues also were up 7 percent, compared with 2010, and adjusted pre-tax profits were $987,000, down from $1.8 million during the same period last year.
The company attributed the drop to increased interest costs in the period before receipt of proceeds from equity fundraising and increased overheads in advance of a strong program of events scheduled for the second half of 2011.
In the first half of this year, good news for the company came from operations in the U.S. and emerging markets.
U.S.-based revenue in the first half of the year was $10.7 million, compared with $10.2 million during the same period last year.
The February Off-Price show saw revenue growth of 10 percent, compared with the 2010 event. The company attributed the show’s success to continuing demand for ‘value’ product.The expansion into footwear and accessories also was well received, and the August edition of the show is tracking positively, company officials added.
The U.S. medical division also started the year strong, with a 12-percent revenue increase, compared with the same period in 2010. The international launch of the division’s online educational business and overall interest in wellness both are reasons cited for the upward trend.
Douglas Emslie, group managing director of Tarsus Group, said the company is looking for even more opportunities in the U.S.
“We are continuing to grow both Off-Price - into footwear – and Medical in education/online,” he added. “In medical, we have grown the number of doctors in the education program from 45 four years ago to now over 4,000. Similarly, the number of education events in medical has grown from eight two years ago to 48 this year. Outside of these two sectors, we are still looking for opportunities.”
The company’s 50/13 strategy, to have 50 percent of its revenues derived from emerging markets by 2013, continues to pay off with events in China and the United Arab Emirates performing well.
In Dubai, revenues were up 12 percent, and China revenues were up 11 percent in the first half of 2011, compared with the same period last year.
In addition, another part of the continued 50/13 strategy was the acquisition of the Turkey-based Istanbul Fair Organization, which was completed in June.
“We remain focused on China, the Middle East and Turkey,” Emslie said. “We have a number of launches and bolt-on acquisitions that we are actively working on in these areas.”
Even though revenues were the highest in Europe in the first half of the year, $11.7 million, it was a 6-percent drop, compared with the same period last year, which brought in $12.2 million. Smaller events in France, which primarily are in the first half, lag behind bigger events in the second half, according to company officials.
“France went into the recession late and is coming out late,” Emslie added.
Sales for Europe’s September Modamont event and Labelexpo Europe, also in September, both are tracking well for the second half, and overall bookings for some of the major events also are trending well.
Overall, the second half of 2011 looks to bring in more good news for Tarsus Group, with forward bookings currently at 87 percent of anticipated full-year revenues, an uptick from 77 percent in 2010.