Interim Management Statement

Creston PLC
18 February 2008





18 February 2008


                                   Creston plc

                          Interim Management Statement


Creston plc (LSE: CRE), the Insight and Communications Group, announces its
interim management statement for the period 1 October 2007 to 31 December 2007.


Operational Trading

The Group continued its consistent track record of achieving growth in excess of
the industry average. Trading during the first three quarters of FY08 is ahead
of the prior year, with revenue growth across the Group of 20 per cent and on a
like-for-like basis 8 per cent.


This continued growth has been achieved despite the present volatile economic
environment and given the structural shift from off-line to on-line which is
taking place within the industry.


During the year the Group increased its investment in its existing operations to
maintain its market leading client proposition. This investment was twofold:


(i)     in new sector specialisations, such as International
        Healthcare PR and Corporate Communications; and

(ii)    in resource and freelance for the fast growing area of
        digital and online.


This strategy has proven successful, as demonstrated by the addition of a number
of new blue chip client wins in the third quarter such as Capital One, First
Direct, Homeform, Royal Mail, Thorpe Park, Toshiba Computers and others to its
already diverse and impressive client base.


Inevitably, the investments have caused a lower profit conversion on incremental
revenue and a small decline in the Headline operating profit margin year on year
from over 18% to 17% for the April to December period. This operating margin is
after accounting for head office costs and Creston US and remains one of the
best in the industry.


Against the current uncertain economic environment, it is even more important to
maximise the operating profit margin and actions included to date are:


a) the formation of a Digital Forum with the brief to reduce the resource cost
   and improve the efficient delivery of projects;


b) further centralisation of the Insight division's data capture and back
   offices; and


c) the formation of a Healthcare Board to maximise client synergy opportunities
   and develop a truly integrated approach to clients' marketing needs.


Operating cash flow during the period remained good and is in line with
management's expectations of a 100% conversion from operating profit.


The group maintains significant headroom in each of its banking covenants and at
the period end had over £16 million of unutilised banking facility available.
This unused facility plus annual operating cash flow are to be used to settle
earn out commitments due over the next three financial years. The earn out
liability is contingent upon the companies in earn out achieving growth up to
the end of the 2009 financial year.


USA

Creston announced in its Interim statement for the period ended September 2007
that it had decided to put acquisitions in the USA on hold, due to the then
concern over a potential downturn in the American economy.


The global economic uncertainty and volatility has only increased since the
Interim statement and more so in the USA than in most other countries.
Consequently, the Board has decided to close its NY office and absorb the duties
of building the Creston offering to American clients from within its London head
office. As a consequence, Steve Blamer will be stepping down as CEO of Creston
Inc. The costs incurred to date and of closing the office are approximately
£600,000 in total and will be fully disclosed in the preliminary results.


Outlook

As demonstrated by the above market revenue growth to date, the Group continues
to perform well in a period of economic uncertainty and when there is growing
evidence of clients delaying spend in the market research sector. As new
business was strong across both divisions in the quarter and the pipeline
remains very positive, the Board expects to be in line with broker revenue
forecasts.


The Board remain confident of delivering absolute and like-for-like growth in
operating profit compared to the prior year. The Group's continued significant
investment in digital and online resource is expected to result in a lower
profit conversion on the revenue growth and therefore a small reduction in the
full year operating profit margin.


The Board believes that Creston, with its diversified and growing online model,
is well placed to weather any future economic uncertainty and it will be pleased
to report in mid-June on its progress in the preliminary results for the full
year ending 31 March.



For further information, please contact:

Creston plc                                            020 7930 9757

Don Elgie, Chief Executive

Barrie Brien, COO/CFO

www.creston.com
------------------


Hogarth Partnership Limited                            020 7357 9477

Chris Matthews/Sarah Macleod


About Creston plc

•        Creston is an Insight and Communications marketing services group.  The
Board's aim is to identify  synergistic benefits between its marketing services
companies offering premium services such as market research, direct  and
interactive marketing, advertising, public relations, insight and to build a
Group that offers clients solutions to  both existing and future marketing needs
across both on-line and off-line channels.

•        Creston's companies boast a range of blue-chip clients
including the AA, AstraZeneca, BA, Bayer, BMW, BT, Burger King, Capital One,
Canon, COI Communications, Cow & Gate, Diageo, eBay, First Direct, General
Motors, George Wimpey, GlaxoSmithKline, Halifax, Homeform, Kimberly-Clark,
Lexus, Lloyds Black Horse, Morrisons, Nestle Rowntree, Nissan, Norwich Union,
Pfizer, Roche Diagnostics, Royal Mail, Sainsbury's, Tesco, Thorpe Park, Toshiba,
T-Mobile, Tropicana, Unilever, Vodafone, Walkers and WH Smith.


•       Creston's share price is quoted in the Financial Times, The
Daily Telegraph, The Times and the London Evening Standard.




                      This information is provided by RNS
            The company news service from the London Stock Exchange