Interim Management Statement

RNS Number : 8774T

St. Ives PLC

26 November 2013

 



26 November 2013

St Ives plc - Interim Management Statement

St Ives plc, the UK's leading marketing services and print group, is today publishing its Interim Management Statement covering the period from 3 August 2013 to date.  The Group's Annual General Meeting is taking place at 11.00 a.m. today.

We continue to make good progress in executing our strategy and our operating profit is ahead of the equivalent period for the prior year. Organic and acquisition growth within marketing services has largely offset the decline in print revenues resulting from our decision to exit commoditised print markets.  As a consequence, Group revenues were broadly flat, with the changing shape and revenue mix across the Group continuing to benefit margins.

Marketing Services

Our marketing services segment is performing well and continues to grow. Revenues were significantly ahead of the same period last year due in part to the contribution from recent acquisitions, but also on an organic basis.  Whilst there are some signs of an improvement in underlying market sentiment as the UK economy continues to recover, our organic growth has been driven primarily by the positive effect of the increasing cross-fertilisation between our businesses and the integrated offering that they can now provide.

Our most recent acquisitions of Amaze and Branded3 have integrated well and we are very pleased with their performance and with their strategic contribution to our overall marketing services offering.  Across the segment we have invested in additional headcount for organic growth, including our new offices in New York and Singapore that were established in response to client demand.  In addition, we continue to seek opportunities for growth through acquisition to build upon and extend our capabilities, around the four established pillars of data marketing, digital marketing, consultancy services and field marketing.

Print Services

Print revenues were down as expected, reflecting the exit from commoditised print markets.  Our remaining print businesses - which are in markets where there is a significant requirement for service - are performing well, despite trading conditions remaining challenging.  We are pleased to have completed the planned restructure across the print segment and continue to invest in the businesses that remain, in order to maintain their market leading positions in book printing and associated services, and in marketing print.

Outlook

The strategic repositioning of the Group has significantly improved our financial performance already, and has created a strong platform for future growth. The new financial year has started well, the balance sheet remains strong and, with the planned restructuring of the legacy print businesses now complete, our focus is on converting the growth opportunities that exist within our Marketing Services segment.  The company is well positioned for further growth.

Ends

For further information contact:

St Ives plc Patrick Martell, Chief Executive Matt Armitage, Chief Financial Officer	020 7928 8844
MHP Communications John Olsen Giles Robinson	020 3128 8100

 

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