Interim Management Statement

18 June 2013 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 2 February 2013 to date. Group revenue for the seventeen week period to 31 May 2013 was £4.6 million, approximately 4%, lower than for the equivalent period in the previous financial year. The decline was due to the expected reduction in Print revenue of approximately 10%, as a result of exiting non-profitable markets, partially offset by Marketing Services revenue growth of approximately 30%. We continue to make good progress with our strategy to reposition the Group and build an extended range of added value marketing services whilst exiting commoditised print markets. Our recent acquisitions of Amaze and Branded3 have created a significant digital marketing offering within our marketing services segment that complements and strengthens our existing capabilities. Marketing Services Across our Marketing Services segment, revenue and underlying operating profit for the seventeen week period to 31 May 2013 were significantly ahead of the equivalent period for last year. All of the businesses have integrated well and we are very pleased with the recent acquisitions of Amaze, a marketing and technology consultancy, and Branded3, a search engine optimisation and digital marketing agency, which will help to establish ourselves as leaders within the high growth digital marketing sector. We have been successful in winning new business within our Data Marketing and Field Marketing businesses. Within our Consultancy Services businesses, we have made some important investments for future growth. We have relocated Pragma, our retail consultancy business, into our Head Office in Tudor Street, London which has provided a better environment and the space to accommodate the increase in headcount necessary to support our growth plans. Our market research consultancy, Incite, has now established offices and recruited teams in both Singapore and New York to support and extend existing client relationships and to take advantage of opportunities for growth in these territories. This is the first overseas move for our Marketing Services segment, and reflects our ambition to be able to deliver services across borders to our increasingly international client base. Print Our book printing business, Clays, has mitigated the impact of reducing run lengths and more frequent reprints through its investments in digital technology and by the implementation of more flexible working patterns across the business. Both our Exhibition and Events and our Point of Sale businesses have performed well during the period. Market conditions remain challenging within the market for Direct Mail where excess capacity continues to exert downward pressure on prices. We keep the cost base of our remaining operation in Bradford under close scrutiny and will take further action to reduce costs should it become necessary. Group Despite the ongoing investment in acquisitions and restructuring, the Group's balance sheet remains strong and underlying free cash flow continues to be robust. Whilst there is no sign of improvement from the difficult trading conditions across our Print markets, our Marketing Services businesses are performing well, growing and combining to offer a unique and compelling customer proposition. For further information contact: St Ives plc 020 7928 8844 Patrick Martell, Chief Executive Matt Armitage, Finance Director MHP Communications 020 3128 8100 John Olsen / Ian Payne / Giles Robinson

Companies

Sivota (SIV)
UK 100

Latest directors dealings