Trading Statement

RNS Number : 5858N

St. Ives PLC

10 August 2017

 

10 August 2017                                    

St Ives plc

("St Ives" or the "Group")

Year-end trading update

St Ives, the international marketing services group, is today providing a year end trading update ahead of the announcement of its final results for the year to 28 July 2017, which will be released on 3 October 2017.

The board reports that the overall results for the year are expected to be at the top end of the range of current market expectations.

Strategic Marketing

During the second half of the financial year, trading across our Strategic Marketing segment has continued to improve, with performance significantly ahead of the equivalent period in the prior year. Revenue for the second half was approximately 17% ahead of the equivalent period last year and, excluding the effects of currency movements, like-for-like revenue growth was c12%.

We continue to be encouraged by the performance of the segment, which has now returned to strong like-for-like revenue growth, with a significantly improved operating margin.

Marketing Activation

Trading conditions within our Marketing Activation segment continue to be challenging, as reported in June 2017. However, while margins remain under pressure, second half revenue was approximately 2% ahead of the equivalent period in the prior year.

The cost reduction measures initiated within the segment have been implemented as planned and on schedule, and the resultant benefits are now helping to mitigate this margin pressure.

Books

Within our Books business, revenue for the second half was approximately 8% ahead of the equivalent period last year.

The previously announced cost reduction and restructuring measures have now been successfully implemented, which are expected to ease margin pressures going forward.

Balance Sheet

We continue to look for opportunities to further strengthen the Group's balance sheet following the recent sales of non-core properties in Peterborough for £5.7 million and Roche for £4.2 million, which successfully reduced debt and created further headroom against our banking covenants.

Defined Benefits Pension Scheme

The Group has reached agreement with the Trustees to increase the contributions to the Scheme from £2.4m per annum to £3.0m per annum. The increase will apply from April 2016 and consequently the contribution in the financial year to 3 August 2018 will be £3.8m and revert thereafter to £3.0m.

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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

 

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