Exhibitions and conference organiser Expomedia is heading for its first profit this year. But the case for buying the shares rests on its ability to exploit emerging, but potentially huge, new markets such as Russia and India – where Expomedia hopes to become the conference-organising partner of choice.

Based in London, Expomedia develops and manages a chain of exhibition and conference centres known as EXPO XXI International Expocentres, across a swathe of key markets. Its CEE Exhibitions arm provides event organising services to international companies that want to enter these markets.

Today, Expomedia offers venues and services in Poland, Russia, India, Germany, Holland, Hungary, Serbia & Montenegro and Morocco. Another string to its bow is publishing through its Mash Media subsidiary, which produces Exhibition Bulletin and Exhibition World among other titles. The company has also notched up media partnerships with T&F Informa, Daily Mail & General Trust and Axel Springer. All help mitigate the risks of the organising business.

Chief executive Mark Shashoua founded Expomedia with his father and chairman Roger in 1999. The duo are renowned entrepreneurs in the exhibitions market, having forged their reputation with ITE Group, where sales grew from £8 million to £36 million between 1994 and 1998. The highly enthusiastic Mark is keen to beat the drum for Expomedia's strategy of partnering with internationally known media groups and brands, and 'cloning' branded events throughout group venues.

Based in Moscow, he predicts particularly big things from the Russian market and from the potentially huge Indian market. Shashoua recently announced a licence agreement with India Exposition Mart involving a new centre, India Expo Centre, which is in the final throes of construction in New Delhi.

This state-of-the-art venue boasts 28,000 square metres of space, incorporating 17,000 square metres of exhibition space as well as service areas. Although October is the formal opening month, the first exhibitions have already been held there. And, although Expomedia will not take over the management until 2006, it will market the venue and draw sales commissions in the interim.

The company has the right to run the venue for ten years and will lend its brand name to it. Expomedia's experience should ensure the success of the venue and its opening should further stimulate the Indian conference and events scene, which presents an enormous market in the coming years.

Says Shashoua: ‘It should become one of the cornerstones of the company's revenues and profits.' Until now, he argues, there has been a severe lack of modern, multi-functional conference facilities in India, with less than 200,000 square metres of space serving the entire country, compared with more than 3.5 million square metres in China.

Expomedia's numbers are certainly moving in the right direction. Adjusted pre-tax losses in 2004 narrowed from £2.3 million to £1.4 million, as healthy organic growth was delivered in Poland, the Russian events business grew rapidly, and the first events were launched in India and Hungary. Forecasts in the market for the current year suggest a swing into the black of £800,000, before a more substantial profit of £3.7 million in 2006.

Admittedly, the shares are trading on a hefty rating for the current year, but the multiple drops sharply the following year as sales and profits build dramatically. And with Expomedia set to expand its operations in what look to be fast-growing markets in coming years, there is every reason to pick up the shares, which currently trade at their low for the year. Strong buy.