Conduit Hldg Regulatory News (CRE)

14 Aug 2009 07:00



Press Release  14 August 2009

Creston plc 

Interim Management Statement 

Creston plc (LSE: CRE), the Insight and Communications Group, announces its interim management statement for the period 1 April 2009 to 30 July 2009.

Trading

The Group's trading overall remains in line with management's expectations. After a robust performance in our last financial year, which saw like-for-like revenue growth in each quarter and 4 per cent for the full year, the prevailing economic recession has caused an anticipated decline and re-phasing of marketing budgets for some clients during the first quarter of the new financial year. The Group has reported a like-for-like revenue decline of 6 per cent for the first quarter compared with the particularly strong first quarter growth of 5 per cent last year. 

The Insight Division had its highest level of secured commissions by this point in the year. The Communications Division has been effected by the expected client budget cuts, however, this has been partly offset by the new business wins from last year. The Health Division's growth has been driven by the new medical education and international offers and their continuing excellent performance in new business.

Although the current economic climate is having an effect on client budgets, we continue to win new business to offset the impact. New business wins to date include Astellas, Astra Zeneca, BMW Motorrad, COI (blood and transplant and vulnerable workers), E-on, GSK and Saudi Arabian General Investment Authority plus other major wins yet to be announced. The new business pipeline remains strong and with a historical high pitch to win ratio, we are confident of winning a good proportion of the opportunities. 

Balance Sheet

On 7 July 2009 the Company successfully raised £3.3m (gross) through a limited capital raising from long term shareholders. The fundraising provides additional working capital for the Group, and also allows for investment in our organic growth plans in areas such as mobile and digital healthcare marketing.

The Group continues to manage its working capital effectively and has generated operating cash flow in line with the Board's expectations. 

Outlook

Despite the current economic climate we believe that the Group's new divisional structure and the new business pipeline stand the Group in good stead for the full year. 

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About Creston plc

Creston is an Insight and Communications company for the 21st century. It offers clients more seamless access to the most innovative marketing insights and communications services to help grow their brands in a rapidly-changing consumer world. Our companies draw upon the collective knowledge, expertise and services from across-the-Group, so that their clients receive the best advice and achieve the best results no matter what the medium. By working together, whether on research or as full-scale marketing partners, our companies continuously innovate to make more things possible for their clients and people.

Creston companies offer a range of marketing services, such as advertising, direct and digital marketing, market research, public relations and healthcare marketing to a broad range of blue-chip clients including: Amazon, AstraZeneca, Aviva, Bayer, BMW, BT, Burger King, Canon, COI Communications, Cow & Gate, Daily Mirror, Diageo, E-on, First Direct, GlaxoSmithKline, Halifax, Homeform, House of Fraser, Kimberly-Clark, Lexus, Lloyds Black Horse, Morrisons, NHS Lottery, Nissan, Opel, Pfizer, Roche Diagnostics, Royal Mail, SAB Miller, Sainsbury's, Tesco, Thorpe Park, Toshiba, Trinity Mirror, T-Mobile, Tropicana, Unilever, Vauxhall, Vodafone, Walkers and WH Smith.

Creston's share price is quoted in the Financial Times, The Daily Telegraph, The Times and the London Evening Standard.