Pre-Close Statement
Creston PLC
11 April 2007
Date: 11 April 2007
On behalf of: Creston plc ("Creston" or "the Group")
Embargoed until: 0700hrs
Creston plc
Pre-Close Statement
• expect results to be in line with current market expectations
• appointment of CEO of Creston in the United States
Creston plc (LSE: CRE), the diversified marketing services group, today is
providing an update on current trading prior to entering its close period.
The Board is pleased to announce that the progress shown at the time of the
Group's interim results has continued and that all divisions are currently
trading in line with expectations.
There have been significant new business wins across the Group, especially in
MARCOMs during the last quarter of the year. These wins include Nissan
Pan-Europe, T-Mobile Digital, Financial Times, eBay, Campbells, Lexus, J
Sainsbury, Servier and the Government's Central Office of Information (COI).
The majority of the financial upside of these wins will impact in the next
financial year.
Strong progress has been made in building the Group's reputation and presence in
the digital space. The Board is particularly pleased with the performance of
the newly formed on-line research offering Newvista, which has won significant
new business such as Orange, Norwich Union, Tesco and Vodafone and shows
considerable growth opportunity. To date, Creston has invested over £500k in
the development of its on-line research offering. The continued success of our
digital capability in the rest of the Group, especially digitaltmw, has resulted
in a number of wins, some of which are solely digital projects, as well as
integrated on and off-line campaigns. The Board currently estimates that, in
total, on-line and digital revenue is growing as a percentage of the Group's
revenue and is now generating annualised revenues of approximately £10.5
million.
The recently announced alliance with Latitude, the UK's leading search engine
marketing agency, also re-enforces Creston's ability to provide an integrated
digital service to its clients through its operating companies.
The Board continues to focus on maintaining the Group's diversified client base
by ensuring no division is reliant on one major client or sector going forward.
The Group's strategy is to build a diversified international marketing services
group through a combination of organic growth and selective acquisitions.
To this end, the Group is pleased to announce the appointment of Steve Blamer as
CEO of Creston in the United States (Creston plc US Holdings Inc). This
appointment marks Creston's entrance into the US market. Mr Blamer was most
recently CEO and President of Foote Cone & Belding Worldwide ("FCB"), one of the
world's oldest agency brands. Prior to leading FCB, Mr Blamer served as CEO of
Grey Worldwide North America, a role he took on after 17 years of success within
the Grey network. Creston's strategy will be to build a US network of
specialisations complementary to that of the UK and, as in the UK, to offer
clients a full suite of solutions to meet both existing and future marketing
needs.
The Board has been very impressed with the contribution that the last three
acquisitions have brought to the Group in terms of financial performance,
synergy and inter-company joint initiatives, such as Newvista.
The addition of ICM, TMW and PAN to the Group has fulfilled the ambition of
providing clients with the prospect of a diversified yet integrated group.
Synergy revenues have grown accordingly. We have always believed that synergy
is an output of having the appropriate market relevant strategy and this
perspective is proving its worth to both clients and to Creston with over £1m of
annualised revenue generated.
We expect both the UK and US marketing services sectors to show growth over the
short to mid-term. Macro economic dimensions such as global over-capacity and
slowing consumer driven consumption will lead to brand owners sustaining or
increasing overall marketing investment in order to stimulate demand. We expect
to see continued growth in both digital and in all divisions as clients focus on
commercial performance and sales performance, as well as return on investment.
The Board is confident about the Group's prospects for the year ahead and will
announce the final results for the year ended 30 March 2007 on Tuesday 12 June
2007.
-Ends-
Enquiries:
Creston plc www.creston.com
Don Elgie, Chief Executive 020 7930 9757
Barrie Brien, COO/CFO
Redleaf Communications 020 7822 0200
Emma Kane/Sanna Lehtinen/Susan Quigley
NOTES TO EDITORS:
• Publication quality photographs are available through Redleaf
on the numbers shown above.
About Creston plc
• Since its inception in 2001, Creston has brought 10 leading brands
under one roof in the UK, offering a host of blue-chip clients a range of
services spanning advertising, public relations, digital marketing, market
research, direct marketing and customer relationship marketing (CRM), among many
others.
• The Board's aim is to identify synergistic benefits between currently
independent marketing services companies offering premium services such as
market research, direct marketing, advertising, public relations, research and
digital; and to build a diversified Group that offers clients solutions to both
existing and future marketing needs.
• Creston's share price is quoted on the London Stock Exchange under the
symbol CRE and is published 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