27 November 2012
St Ives plc - Interim Management Statement
St Ives, the UK's leading marketing services and print group, is today
publishing its Interim Management Statement covering the period from 28 July
2012 to date.
We have made a good start to the current financial year with revenue for the
fourteen week period ended 2 November 2012 broadly flat compared to the
equivalent period last year, reflecting the benefit of growth across our
Marketing Services businesses, offset by the revenue impact of our decision to
exit commoditised print markets. As a result, margins are improved and
underlying operating profit is ahead of the equivalent period for the prior
year.
We continue to make good progress with our strategy to reposition the business
and offer an extended range of services and added value customer solutions from
across the Group's capabilities.
Print
Trading conditions remain challenging but despite the anticipated fall in
revenue, we have managed to improve margins and therefore maintain underlying
operating profit. Within our Direct Response business, the closure of the Leeds
facility will complete on schedule and the work will be transferred to our
remaining site in Bradford. Our Point of Sale business continues to perform
well and we have successfully renegotiated a number of our larger contracts.
Service Graphics, our Exhibition and Events business, has performed well in the
period and is benefitting from the reputation for the quality and reliability
of the services that we provided during the London Olympics. Whilst our Books
business continues to be impacted by changing order patterns, our reputation
for service and reliability ensures we produce the majority of the bestselling
titles.
Marketing Services
With a contribution from all of the Marketing Services businesses in the
period, revenue and underlying operating profit are significantly ahead of the
equivalent period for last year. All of the acquisitions have integrated well
and we are winning business at an individual business level and through
combining our capabilities on specific customer propositions. We will continue
to invest in this area of our business, and to seek further selective
acquisitions that extend our ability to offer a comprehensive and
differentiated proposition to our target markets.
Outlook
The actions we have taken to reposition the Group have enabled us to make
progress in spite of headwinds in the UK economy. The new financial year has
started well, the balance sheet remains strong and we remain confident that
further progress will be made as we continue to execute our strategy.
- Ends -
For further information contact:
St Ives plc 020 7928 8844
Patrick Martell, Chief Executive
Matt Armitage, Chief Financial Officer
MHP Communications 020 3128 8100
John Olsen / Ian Payne / Giles Robinson
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