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Freshwater UK PLC (FWUK)


Wednesday 12 March, 2008

Freshwater UK PLC

Notice of Results

Freshwater UK PLC
12 March 2008

Date:            12 March 2008

On behalf of:    Freshwater UK Plc ('Freshwater', 'the Company' or ' the Group')

Embargoed until: 0700hrs

Freshwater UK Plc (AIM: FWUK)

• Notice of results
• Trading update

Freshwater, the integrated PR and marketing group with a UK regional network,
today announces that it will release its interim results for the period ending
29 February 2008 on 15 May 2008, prior to entering a close period.

Freshwater has traded in line with market expectations in the first six months
of its 2007-2008 financial year, and is confident of continuing to trade
strongly in the second half of the year. The Group shares the assessment of
others in the sector that the PR industry is resilient and outperforming other
marketing services. Income visibility is good, and the Group is experiencing a
strong flow of new business opportunities.  To date, the directors have seen no
signs of clients' marketing spend being reduced in response to the instability
in world debt markets.

The only negative development is a potential bad debt provision for a
long-standing client, owing approximately £154,000.  It is not clear how much
will be recovered at this stage.  However, the company concerned does have
substantial assets of land and completed houses, the realisation of which will
be available for creditors.  The board is satisfied there are one-off
circumstances that have led to this situation.  Moreover, the Group is not
exposed significantly to the property sector and has a diverse client base, with
no client accounting for more than 3% of Revenue, except the National Grid
(which accounts for just over 5%). It is a testament to the robust and
diversified revenue stream of the Company that, despite this potential one-off
provision for the full amount, the Directors remain confident that Freshwater
will continue to trade in line with market expectations for the year to 31
August 2008.

Highlights from the first half of the year include:

  •  Organic growth: As noted above, organic growth on a like for like basis 
     was 5.7% in the period.   Opportunities for further growth through
     cross-selling and combined selling of Freshwater's services have increased
     as the Group's client list approaches 400 and new services have been added 
     through acquisition.

  •  Integration: Attenborough Saffron, the London consumer agency acquired
     in February 2007, has performed strongly in the first twelve months since
     completion of the acquisition.  The Group looks forward to Attenborough
     Saffron's continued development, including its rebranding as Freshwater
     Consumer, and to benefiting from Managing Director Nick Attenborough's
     experience and leadership following his appointment to the Group's Executive
     Committee in January 2008.

  •  Acquisitions: In November 2007 the Group acquired Lynx Public Relations 
     Ltd, a Leeds-based consultancy with an established reputation for 
     delivering community relations advice to clients in the utilities sector,
     including National Grid. This was followed in December 2007 by the 
     acquisition of Waterfront, a leading UK and EU public affairs and 
     conference agency with market-leading experience in transport, the 
     environment and local government, where clients include Maersk, Transport 
     for London, DP World (the Dubai Ports Authority), the Civil Aviation 
     Authority and Mersey Travel. In January 2008, the Group acquired Merlin 
     Marketing and Public Relations Ltd, a Cardiff-based PR, marketing and 
     design agency which will broaden the Group's digital and online
     marketing arm.  All three acquisitions have furthered the Group's aim of
     becoming Britain's leading regional and specialist PR network through 
     organic growth and earnings-enhancing acquisitions.

The Board looks forward to providing a more detailed update to shareholders in

- Ends -

Enquiries to:

Freshwater UK
Steve Howell, CEO                                                029 2054 5383
Haydn Evans, CFO
Alex Love, Corporate Communications

Charles Stanley Securities (Nominated Adviser)
Mark Taylor/ Freddy Crossley                                     020 7149 6000

Redleaf Communications                                [email protected]
Emma Kane/ Sanna Lehtinen/ Anna Dunkin                           020 7822 0200

Notes to Editors:

 •  Freshwater UK plc was founded in 1997 by Steve Howell, CEO

 •  Freshwater UK plc listed on AIM on 16 July 2007

 •  Freshwater UK aims to become one of the top providers of regional PR
    services to major national brands while also retaining and developing strong
    client portfolios in each region

 •  Freshwater is an integrated PR and marketing business that combines a UK 
    regional network with specialist expertise in sectors including technology,
    healthcare, property, leisure, retail and the public sector

 •  Freshwater provides three divisions in marketing support services:

       • Creative

       Graphic design and media buying to its own portfolio of clients as well 
       as PR and marketing clients across the Group

       • Academy

       Training, coaching and consultancy across Britain to clients in the 
       public and private sector

       • Digital

       Digital services, including broadcast quality video DVDs, websites, 
       podcasts, video streaming and electronic newsletters

  • Freshwater has integrated seven acquisitions since 2004, all of which are
    now trading under the Freshwater brand.  The directors believe that the
    Group has established a strong brand within the PR and marketing services
    sector and is well placed to achieve further growth both organically and
    through targeted acquisitions in fitting with the Group's overall strategy.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                                  

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