29 November 2011
St Ives plc - Interim Management Statement
St Ives, the UK's leading marketing services and print group, is today
publishing its Interim Management Statement covering the period from 30 July
2011 to date.
We are pleased to report that we have made a good start to the current
financial year with sales for the 13 week period ending 28 October 2011
approximately 10% ahead of the corresponding period in the prior year. This
increase is predominantly from both acquisitive and organic growth in our
marketing services segment, whilst sales across the print businesses are
broadly in line with last year, despite the ongoing tough economic climate.
We continue to make good progress with our strategy to reposition the business
away from commoditised print markets and toward higher added value services
that are complementary to our print offering.
The recently acquired Response One and Pragma businesses have been successfully
integrated and have significantly strengthened and extended the Group's
marketing services capabilities. We are very pleased to have acquired these
businesses and, building on the success of our previous acquisitions, Occam and
Tactical Solutions, we are already exploring opportunities to cross sell their
services to existing customers as well as including them in our broader
customer proposition.
As a result of the ongoing structural changes in our traditional print markets,
we have proposed the closure of our Westerham and Blackburn manufacturing
sites, which print company reports and CD/DVD inserts respectively.
Print
Despite the difficult trading conditions we have managed to maintain overall
print sales in line with last year, achieve further cost reductions and gain
additional market share. The commercial print market remains fiercely
competitive and significant excess capacity continues to exert pressure on
price. However, our book business remains very strong and our eBook strategy
has been enhanced by our recently announced investment in the eBook conversion
software provider, Evolved Group. Our point of sale business continues to make
progress and there are some signs that the market for large format graphics is
improving ahead of the 2012 Olympics.
Marketing Services
From a standing start we have successfully built a credible and extensive range
of marketing services capabilities through acquisition and organic development.
In addition to being individually strong businesses, our combined range of
complementary services create a unique proposition which presents the Group
with good opportunities for growth and margin improvement. We will continue to
invest carefully in all of these businesses and to seek further selective
acquisitions.
Outlook
The economic climate is challenging and margins remain under pressure,
requiring us to keep the cost base of the Group under close review. The Group's
financial position remains strong and the necessary restructuring of those
businesses exposed to commoditised print markets is nearing completion. Whilst
visibility is poor and there are no signs of improvement in underlying market
conditions, we remain confident that the actions we have taken to strategically
reposition the Group will enable us to make further progress this year.
- Ends -
For further information please contact:
St Ives plc 020 7928 8844
Patrick Martell, Chief Executive
Matt Armitage, Finance Director
MHP Communications 020 3128 8100
Andrew Jaques
John Olsen
Ian Payne
Giles Robinson
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