Text 100 Group PLC
27 July 2000
TRADING UPDATE
To 22nd July 2000
Sent to all shareholders
Text 100 Group plc, the international IT-specialist PR group, has
continued to make strong progress since the announcement of its
interim results in April, at which time it reported turnover up
61% and pre-tax profit up 26% before exceptional flotation costs.
As a result, the Group now expects that its full-year figures to
31st July 2000 will be at least in line with current market
expectations.
This rapid progress is down to stronger than expected organic
growth across the Group's seven PR and marketing brands worldwide
- both in terms of new business wins and new office openings - as
well as a rapid shift to profitability among some of the Group's
early stage businesses.
All this comes at a time of exceptionally buoyant demand for the
Group's services in all of its major markets. New business wins
are too numerous to list in full, but include AskJeeves in the UK
and US, Fox Kids in the UK, Palm and Intel in South Africa, Unisys
in Ireland and China Online in Hong Kong. During the second half
of the year, the Group has opened a new PR operation in New
Zealand, an online PR recruitment business called WorkinPR.com in
Seattle, and has launched the 'extra pr' brand in South Africa.
In the coming financial year, the Group has new operations planned
in Europe, Asia Pacific and particularly North America, where the
Text 100 brand will establish subsidiary offices in Palo Alto
(Silicon Valley), New York and Atlanta.
While the successful early-stage businesses still have a
relatively limited effect on the Group's overall financial
performance, they do demonstrate the vigour of the Group's organic
business model, while at the same time highlighting the Group's
growth prospects over the coming years as they increase in size.
As an illustration of the rapid progress of individual
subsidiaries, Bite Communications' first overseas subsidiary has
been based in San Francisco. It has managed to repay all start-up
costs and break even after its first year of operation, and now
has a five-strong client list that includes Hewlett Packard's
'Channel Division.' This level of progress is mirrored in many
other situations.
The Group has also announced the resignation from the board of one
of its non-executive directors. John Rasor, who joined the Group
in July 1999, has decided to leave the board, for personal
reasons, with effect from 1st August 2000.
The Group expects to announce its full-year figures for the 12
months to 31st July 2000 during the week beginning Monday 23rd
October.
For further information, contact:
Tom Lewis, Chairman, Text 100 Group 020 8996 4100
David Dewhurst, Finance Director 020 8996 4100
Nick Denton, Hogarth Partnership 020 7357 9477
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