Trading update

RNS Number : 9151X

St. Ives PLC

30 November 2017

 

30 November 2017                                

St Ives plc

("St Ives" or the "Group")

Trading update

St Ives, the international marketing services group, provides the following trading update covering the three months to 3 November 2017.

Overall, trading in the period has been positive and ahead of management's expectations, with Group revenue running approximately 4% ahead of the equivalent period last year.

Strategic Marketing

The momentum achieved during the second half of the previous financial year has continued during the first three months of the new financial year. Like-for-like revenue growth in the segment was approximately 22% ahead of the equivalent period last year while operating margins have remained strong.

The profitable growth within Strategic Marketing continues to be driven by large new business wins, particularly within our digital businesses, along with increased collaboration across the segment, as highlighted in our recent full year results.

Revenue visibility continues to improve and we are broadening the range of clients we work with as the segment grows.

Marketing Activation

Trading conditions within our Marketing Activation segment continue to be challenging and highly competitive. Revenue for the first quarter was approximately 4% below the equivalent period last year and operating margins were in line with expectations. We have taken decisive action to reduce costs and to increase efficiency while continuing to diversify the customer base. Targeting customers that value service and innovation, as opposed to those focussed on price alone, remains a priority.

Books

Within our Books business, as expected, revenue for the first quarter was approximately 12% below the equivalent period last year, reflecting the contract loss announced in February 2017. Operating margins were in line with expectations and we continue to focus on managing the cost base proactively.

Balance Sheet

Net debt to underlying EBITDA of 1.6 times at the end of the quarter was in line with the position at the end of the previous financial year and remains comfortably within our banking covenants.

- 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

 

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