Last checked at 3 Feb 2015 07:00
Creston plc
Interim Management Statement
Creston plc ('Creston' or the 'Group') (LSE: CRE), the marketing communications group, today announces its interim management statement for 1 October 2014 to date.
Following an encouraging H1 in which revenues grew 5 per cent, growth in the three months to 31 December 2014 was lower, with Group revenue up 1 per cent on the prior period giving rise to year-on-year growth of 3 per cent for the year-to-date (4 per cent on a constant currency basis).
Our Communications & Insight division continued to perform well. Our third quarter revenue performance was as a result of some client budget cuts and project delays within the UK health business, which will also affect the Group's final quarter revenue. As a consequence the Board expects full year Group revenue growth, but for it to be lower than expectations.
Operating costs have been reduced and, based on current trading, the Board expects Group Headline PBT for the full year to be broadly in line with market expectations. With a lower effective tax rate than anticipated, Headline Diluted EPS is expected to be in line with market expectations.
New Business and Strategy
The Group continues to achieve new business success, winning high profile brands such as Mclaren and Superfast Broadband, with post period wins including Vue, Barilla and La Roche-Posay. It has also expanded its work for existing clients such as Sony Mobile and Novartis.
The repositioning of Creston as a full service agency group of specialists, following the launch in November 2014 of Creston Unlimited and the Unlimited rebrand of Group companies, has been well received by clients, intermediaries and prospective partners. There has been good external interest in our expanded Creston Unlimited offer with an encouraging level of multi-agency new business pitches. Creston Unlimited is also working well with its new international partner, Serviceplan, and together we are pitching for a growing number of international opportunities.
As previously acknowledged, digital work by its nature can lead to variability in annual income over the course of a client relationship. The Board therefore continues to pursue its strategy of broadening the Group's offer from pure marketing execution services to include consultancy led marketing advice. This should lead to greater pipeline visibility and more long term retained instructions.
Outlook
While the marketing services sector remains vulnerable to the impact of macro-economic events and their potential to affect our clients' budgets in the FY15 final quarter, the Board is confident that the Group, with its new management, strengthened Creston Unlimited offer and first-rate blue chip client relationships, is well-placed to deliver long-term growth.
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For further information please contact:
Creston plc | + 44 (0)20 7930 9757 |
Barrie Brien, Group Chief Executive |
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Kathryn Herrick, Chief Financial Officer |
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Bell Pottinger | +44 (0)20 3772 2491 |
Elly Williamson/Lucy Stewart |
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About Creston plc
Creston plc (LSE: CRE), incorporating the Creston Unlimited group offer, is a marketing communications group delivering a range of digital technology-based marketing solutions to blue-chip global clients. Encompassing consultants and discipline experts from across the industry and beyond, Creston Unlimited unlocks the power of creative collaboration to realise the opportunities that exist for brands and businesses in today's rapidly evolving world. www.creston.com / www.creston-unlimited.com