Statement re contract

RNS Number : 4579R

St. Ives PLC

21 September 2017

 

21 September 2017

This announcement contains inside information

St Ives plc

("St Ives" or the "Group")

Statement re contract

St Ives, the international marketing services group, was informed today by Sainsbury's that its contract with the Group's Marketing Activation segment, for the production of in-store marketing materials, will not be renewed.  The contract now represents approximately 3.5% of the Group's annual revenue and ends on 2 December 2017.

Management will be initiating actions to reduce the cost base of the segment to mitigate the impact of the non-renewal, with associated one-off cash restructuring costs of approximately £1 million within the financial year ending 3 August 2018.

Due to a stronger than expected trading outlook within the Group's Strategic Marketing businesses, we do not expect the non-renewal of the contract to have any impact on our trading outlook for the year ending 3 August 2018.

The Group will announce its Full Year Results for the 52 weeks ended 28 July 2017 on 3 October 2017.

- Ends -

For further information contact:

St Ives plc                                                         020 7928 8844

Matt Armitage, CEO

Brad Gray, CFO

MHP Communications                                       020 3128 8100

Tim Rowntree / Giles Robinson / Luke Briggs

 

END

 

 

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