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
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