Conduit Hldg Regulatory News (CRE)

20 Apr 2009 07:00



 20 April 2009

Creston plc 

Pre-Close Trading Statement

Creston plc (LSE: CRE), the Insight and Communications Group, provides an update on trading prior to entering its close period in advance of the preliminary results for the year ended 31 March 2009.

In the 2009 financial year, the Company has performed ahead of consensus forecasts for revenue (achieving 4% year-on-year growth), EBIT, EBITDA, earnings per share and had a lower net debt position. 

This strong performance has been driven by an excellent new business performance that more than compensates for general market softness. Since the Interim Statement in November 2008, there have been a number of significant new business wins across the Group from both existing and new clients. These wins include Astellas, Boehringer Ingelheim, E-ON, GSK, Marie Curie Cancer Care, Panasonic, Spicers and Toyota. Net new business wins for the year will generate over £15 million in revenue (2008: £9 million). The Group continues to have a healthy pipeline of new business, especially in digital and on-line research. 

All acquired Group companies have completed their earn-out periods by 31 March 2009 and the final deferred consideration, which can now be finalised and is no longer contingent upon future profit levels, will be detailed in the preliminary announcement and will be settled in December 2009 and June 2010. 

At 31 March 2009, net debt was approximately £19 million having been reduced by over £12 million since September 2008, after a strong cash generating performance during the second half of the financial year. This reduction in net debt also follows the settlement of over £13 million deferred consideration in respect of DLKW.

The Group maintained tight management of its key performance indicators covering revenue and profit per head and operating profit margin. Consequently the Group ends the year with operating costs aligned to revenues forecast for the new financial year.

Creston plc expects to announce its preliminary results for the year ended 31 March 2009 on Tuesday, 23 June 2009.

-Ends- 

Enquiries: 

NOTES TO EDITORS:

Publication quality photographs are available through Hogarth on the numbers shown above.

About Creston plc

Since its inception in 2001, Creston has brought 10 leading brands under one roof in the UK, offering a host of blue-chip clients a range of services spanning advertising, public relations, digital marketing, market research, direct marketing and customer relationship marketing (CRM), among many others.

Creston is divided into two divisions: Insight, which encompasses those agencies engaged in understanding consumer behaviour, attitudes and needs, via research and evaluation; and Communications, which comprises agencies involved in influencing, shaping and changing consumer behaviours, attitudes and needs - this includes PR, advertising and marketing. Both divisions are entirely complementary.

Creston's share price is quoted on the London Stock Exchange under the symbol CRE and is published in the Financial Times, The Daily Telegraph, The Times and the London Evening Standard.