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3 Feb 2009 07:00
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3Β FebruaryΒ 2009
Creston plcΒ
Interim Management StatementΒ
Creston plcΒ (LSE: CRE), the Insight and Communications Group, announcesΒ its interim management statement for the period 1Β AprilΒ 2008Β toΒ 2 FebruaryΒ 2009.
Financial Performance Indicators
Trading for the nine months ending December 2008Β have been in line withΒ theΒ Board's expectations and demonstrate growth during a difficult economic environment:
RevenueΒ growthΒ of 4%
HeadlineΒ operating profitΒ marginΒ after head office costsΒ of 18% (2008: 18%)Β
Operating cash conversion from EBITDA of 97 percent.Β
Headline performance measures exclude the impact ofΒ theΒ non-recurringΒ chargesΒ outlined in the Company's Interim statement.
New Business
In the Interim statement for the six months ending September 2008, the GroupΒ announcedΒ net new business revenue annualised at Β£11m (2008: Β£5m). This excellent new business performance has continued to date with further wins across both Divisions, which include Boehringer Ingelheim, COI (Stroke Awareness), Unilever (Lynx), Services at Home, SpicersΒ and Xchanging. As the new calendar year starts, there continues to be aΒ goodΒ pipe line of new business opportunities across the GroupΒ and recent wins that will be announced shortly.
Operational Trading
The Board's business objectives remain unchanged with a focus on reducing debt and maintaining upper quartile key performance indicators (KPIs), such asΒ revenue per head,Β operating profit marginΒ and cash conversion.Β As noted above the cash conversion onΒ EBITDAΒ for the nine monthsΒ has been goodΒ and the reduction in net debt remains in line withΒ the Board's expectations.
As reported in the Group's Interim statement, only 21Β per centΒ of the Group's revenue is in advertising and over 70Β per centΒ in direct and digital marketing, healthcare marketing and market research. This diversification towards more resilient areas of the marketing industry has benefited the Group as demonstrated in the financial performance noted above.
The Communications Division has benefited from its weighting towards direct and digital marketing and offering integrated on and off line communication. This Division continues to achieve strong year on year growthΒ driven by an excellent new business performance.
Trading for the Insight Division continues to be robust in the larger companies ICM and Marketing Sciences. However,Β as reported in the Interims the niche discipline of qualitative market research continues to experience aΒ year-on-year declineΒ and the Company has taken the necessary steps to align costs and structure to the trading outlook.
Outlook
The Board is realistic about the tough trading environment theΒ UKΒ economy faces and as the Group prepares for the new financial year, it will reduce its operating cost baseΒ where necessary, so its KPIs remain in line.Β Based on the nine month trading performance to the end of December 2008, the Group remains on course to meet the Board's expectationsΒ for the current financial year.Β
For further information, please contact:
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Creston plc |
020 7930 9757 |
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Don Elgie, Chief Executive |
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BarrieΒ Brien, COO/CFO |
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www.creston.comΒ |
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Hogarth Partnership Limited |
020 7357 9477 |
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Chris Matthews/Anthony Arthur/Β Fiona Noblet |
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About Creston plc
Creston is an Insight and Communications marketing services group. The Board's aim is to identify synergistic benefits between its marketing services companies offering premium services such as market research, direct and interactive marketing, advertising, public relations, insight;Β and to build a Group that offersΒ effective and accountableΒ marketingΒ solutionsΒ across both on-line and off-line channels.Β
Creston's companies boast a range of blue-chip clients including the Amazon, AstraZeneca,Β Bayer, BMW, BT, Burger King,Β Canon, COI Communications, Cow & Gate,Β Daily Mirror,Β Diageo, eBay,Β First Direct,Β General Motors,Β GlaxoSmithKline,Β Halifax,Β Homeform,Β House of Fraser,Β Kimberly-Clark, Lexus, Lloyds Black Horse, Morrisons,Β NHS Lottery,Β Nissan, Norwich Union, Pfizer, RocheΒ Diagnostics,Β Royal Mail,Β SAB Miller,Β Sainsbury's, Tesco,Β Thorpe Park,Β Toshiba,Β Trinity Mirror,Β T-Mobile, Tropicana, Unilever, Vodafone, Walkers and WHΒ Smith.
Creston's share price is quoted in the Financial Times, The Daily Telegraph, The Times and the London Evening Standard.
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