ITE presses on with Indian expansion Surging growth in central Asia helped ITE Group overcome increased competition in Russia as the emerging markets-focused events group pressed on with expansion plans in India. Annual like-for-like revenues in the group's Russian business - which accounts for more than 60 per cent of ITE's top line - fell 2 per cent, as its flagship events in Moscow came under pressure from new rivals. Russell Taylor, chief executive, said business in Russia should recover next year. "The worst of that is behind us," said Mr Taylor. Bookings are tracking ahead of where they were last year. Across the group, which hosts international trade exhibitions and conferences, bookings for 2013 were in line with expectations at £95m. Strong growth in the group's central Asian division offset weaker performance in Russia, however, with revenues up almost a quarter on last year. Overall revenues rose 10.8 per cent year on year to £172.3m. ITE also said on Tuesday that it had taken a 28 per cent stake in ABEC, an Indian events company, for £14m in cash. "They have the local power - people that will enable us to launch brands much more easily," said Mr Taylor. You need local firepower and knowhow to do business in India. India's exhibition market is worth only $230m - far below that of other emerging markets, such as Turkey, Brazil and China - with the country suffering from a lack of exhibition space, although this situation will improve, according to Mr Taylor. At the moment India doesn't have enough [exhibition space]. It has structural growth, but it doesn't have an NEC," Mr Taylor said. Profit before tax edged up 3.6 per cent to £40.5m for the year, as acquisitions chipped away at the group's gross margin. Diluted earnings per share rose 1.6 per cent to 12.8p. The group increased its dividend by 6.6 per cent to 6.5p. Shares in the group rallied 8.3 per cent to 213½p. ● FT Comment There was a lot of good news in ITE's annual results. Central Asia romped away, along with eastern and southern Europe. But there was one worry: Russia. If 2013"s solid order book is any guide, however, the weak Russian performance was a blip rather than something more severe. In any case, ITE is extremely reliant on Russia and investors should welcome the group's push into India, even if it is slow and steady rather than explosive growth on the menu. Until Tuesday's rally, the shares had had a lousy 2012. Having spent £85m on acquisitions in the past three years, ITE is unafraid of opening its wallet. If it buys wisely, acquisitions could fuel the recovery in 2013 and beyond.