Tarsus Group

An increasing emerging markets emphasis helped resilient exhibitions business Tarsus to a record 2009.

In a tough calendar year, Tarsus, with a portfolio of large, market-leading events, diverse by both industry and geography, grew sales 35% to £57.5m and pre-tax profits 36% to £14.6m. In another major positive, net debt was pared back by 10% to a better-than-expected £30.7m.

Determined managing director Douglas Emslie highlighted two key drivers behind the impressive numbers, namely ‘the strength of emerging markets, which are where the industry is going as manufacturers move east’, as well as the fact that ‘our big shows – the Dubai Airshow, Labelexpo and our medical shows in America – have done well’.

Tarsus’ fast-growing Emerging Markets division contributed a third of sales and Emslie plans to swell this proportion to 50% by 2013. And in a clear sign the company can outperform the market, there was a significant increase in visitor numbers across the portfolio of events, nearly all of which are now located outside the UK. Encouragingly, Tarsus’ largest event, the Dubai Airshow, grew sales 19% and attendances rose 18%.

Alongside the strong numbers, Tarsus announced the acquisition of the remaining 20% minority interest, for US$10.75m (£6.6m) in shares, of profitable Medical Conferences International (MCI) in a move strengthening its positioning in the US medical events space.

Offering exposure to high growth emerging markets including the Middle East, China and also India, Tarsus has already booked 49% of its forecast 2010 revenues of £41m, which are lower year-on-year due to the biennial nature of its sales. Selling for a little over 12 times forecast earnings and offering a 5.1% yield, its shares are compelling fare indeed.