St. Ives PLC Trading Statement (8547G)
August 11 2016 - 1:00AM
UK Regulatory
TIDMSIV
RNS Number : 8547G
St. Ives PLC
11 August 2016
11 August 2016
St Ives plc ("St Ives" or the "Group")
Year end trading update
St Ives, the international marketing services group, is today
providing a year end trading update ahead of the announcement of
its results for the year to 29 July 2016, which will be released on
4 October 2016.
The board reports that the overall results for the year are
expected to be in line with current market expectations.
Strategic Marketing
Despite the cancellation and deferral of a number of large
projects during the final quarter of the financial year (as
reported in our 25 April trading statement), trading across our
Strategic Marketing segment has continued to be positive and
significantly ahead of the equivalent period last year. It remains
our view that the issues we encountered in the final quarter were
short term and we are encouraged with the progress that is being
made to replace the projects which were cancelled.
Revenue for the segment is approximately 30% above the prior
year. Organic growth, at approximately 11%, has been very strong
reflecting the high quality of our businesses.
The integration of The App Business (a mobile-led consultancy
specialising in strategy, product development and business
transformation, acquired in January 2016), is progressing well.
Whilst remaining alert to the possible impact from Brexit on
business confidence and having carried out targeted cost savings we
continue to support the growth plans of this segment both in the UK
and internationally.
Marketing Activation
Trading conditions within our Marketing Activation segment
continue to be challenging due in large part to the ongoing
pressures within the grocery retail market, with revenue
approximately 7% below the prior year. Diversification of the
client base to reduce this segment's dependency on the grocery
sector remains a priority; to this end, we were recently appointed
as print and fulfilment partner for Whitbread plc on a long term
contract to support all of their brands. We continue to target
other contracts of this nature although we recognise that it will
take time and investment to win and transition such work. The
Whitbread work, along with additional services now being provided
under our contract with HSBC, will help to reduce our dependency on
the grocery retail sector in the long term but they have, in the
short term, led to contract transition costs being incurred in the
final quarter of our financial year.
Books
Within our Books business, revenue is approximately 2% above the
prior year. We have finalised the transition of the additional work
won from Penguin Random House. The de-stocking experienced in the
final months of our financial year, due to a reduction in publisher
warehousing capacity, appears to have run its course and we do not
expect the warehousing reduction to cause further volume reductions
in the coming financial year.
- Ends -
For further information contact:
St Ives plc 020 7928 8844
Matt Armitage, CEO
Brad Gray, CFO
MHP Communications 020 3128 8100
John Olsen / Giles Robinson / Gina Bell
This information is provided by RNS
The company news service from the London Stock Exchange
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