30 November 2009
St Ives plc - Interim Management Statement
St Ives is today publishing its Interim Management Statement covering the
period from 1 August 2009 to date.
Underlying sales for the 13 week period ending 30 October 2009 were
approximately 9% below the comparable period for the previous year. Despite the
lower level of sales, profitability remains in line with management's
expectations, benefiting from the cost reduction actions that were outlined in
the preliminary results statement, issued on 19 October 2009.
Our book business continues to benefit from steady demand, its market leading
position and extended range of added value services. Magazine volumes have
shown no sign of improvement as pagination continues to be severely impacted by
reduced advertising spend. Our well invested facilities and reputation for
service and quality continue to enable us to secure targeted work to mitigate
the effects of reduced demand.
Demand for point-of-sale products is holding up, helping to compensate for
ongoing margin pressure and shorter notice periods for campaigns, the latter
leading to increased costs. Our outdoor advertising and events business has
seen some increase in activity, which is encouraging, although volumes remain
significantly below those for the prior year. Inevitably, within the direct
response and commercial business, some direct response advertising campaigns
have been cancelled or postponed as a result of the disruption to the postal
system.
There have been no significant changes to the Company's financial position
since 1 August 2009 and cash flows remain strong.
Overall, the economic outlook remains uncertain, a number of our customers have
expressed caution with regard to the early part of the New Year and there are
no signs yet of an underlying improvement in activity. However, we are seeing
the benefit of the actions taken to reduce the cost base of the group and our
businesses are very well positioned to take advantage of increased activity
levels when they occur.
For further information please contact:
St Ives plc 020 7928 8844
Patrick Martell, Chief Executive
Matt Armitage, Finance Director
Smithfield 020 7360 4900
John Antcliffe
Rupert Trefgarne
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