Trading Statement

RNS Number : 7693L

Upstream Marketing and Comms Inc.

16 January 2009

 



Upstream Marketing and Communications Inc.

('Upstream' or 'the Company')

Trading Update

The Board of Directors (the 'Board') announces an update on the Company's current trading and progress against its business plan.

Following the Company's Interim Results announced on 23 September 2008, which highlighted the uncertainty of the impact of the global economic slowdown, the Company has witnessed a further deterioration in market conditions and now expect operating profit to fall materially below internal management expectations.

In the results for the full year ended 31 December 2008, which are expected to be announced in June 2009, the Company anticipates reporting a profit before tax, partially attributable to non-recurring revenue from the sale of the Company's Media Services Asia subsidiary in  May 2008.  However, in the period since the interim  results  were announced, there has been a significant slowdown in revenue as existing clients and other prospects have held back or reduced their usual communications budgets for Q4 2008. Furthermore our current sales pipeline indicates that this trend will continue throughout 2009. 

On this basis, the Board has commenced the implementation of a number of steps which it believes will enable the Company to deal with the challenging economic environment faced by the Group. These steps include a scaling back of the Company's topline business plan, and a reduction in the Company's cost base  primarily  through a decrease in headcount across the Group through attrition and the removal of replacements and future  hires from the budget. In addition, management is stepping up marketing efforts with a view to improving revenue generation, reducing operational expenses, and monitoring closely the ongoing cashflow requirements of the Group.

Given these measures and based on the existing outlook for the Group, the directors believe the Company has sufficient working capital for the medium term. 

Enquiries:

David Ketchum

[phone]

[e-mail]

www.aboutupstream.com 

James Harris/Angela Peace

Strand Partners Limited

[phone] 

Claire Louise Noyce/Stephen Austin

Hybridan LLP

[phone]

 

END

 

 

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