Last checked at 22 Apr 2013 07:00
22 April 2013
Creston plc
Trading Statement
Creston plc ('Creston' or the 'Group') (LSE: CRE), the Insight and Communications Group, provides an update on trading for the year ended 31 March 2013 ahead of its full year results for the period.
The Group expects to report full year revenue of £75 million (2012: £74.9 million) and to be in line with consensus Group Headline PBT. Following a strong cash conversion, and with operating cash flow ahead of Board expectations, the Group expects to be in a net cash position of over £10 million at the year end. This includes £6.5 million of the previously announced £7.2 million (including VAT) received as a reverse premium and contribution to the agreed dilapidations obligation for the Group's new London office.
Following a working partnership of over 20 years with Sanofi Pasteur, Cooney/Waters' contract with the client came to an end during the fourth quarter of the financial year just ended. Appropriate cost reductions were made in the fourth quarter to mitigate this revenue reduction, and it is expected that both the estimated future deferred consideration and the carrying value of goodwill for the Cooney/Waters Group will be reduced at the year end. On the back of the agency's excellent reputation for providing communications support, it has already begun to replace part of the Sanofi Pasteur revenue through developing a new client relationship.
The Group's most recent acquisition, DJM Digital Solutions Limited, is performing well and has been involved in several new business wins with other companies within the Health division.
There have been a number of other recent new business successes across the Group's divisions, most notably within Communications. All of the Group's agencies in its Communications division, as well as Red Door Communications from its Health division, have been appointed on a three year term to the UK Government Procurement Service's roster for marketing services (which includes digital marketing). The exact process to determine how work will be allocated to the agencies on the roster is still to be finalised. However, given the size of the budget and the fact that Creston is the most represented marketing communications group on this roster, it is expected to become a top five client for the Group during the three year appointment. In a second major win for the Communications division, it was announced on 19 April 2013 that Reckitt Benckiser UK is consolidating all of its digital activity across its portfolio of 19 brands into TMW.
The recovery within the Group's Insight division continued during the second half, and the Board expects it to report a stronger second half compared with the first half of the financial year.
Creston will announce its full year results for the year ended 31 March 2013 on Wednesday 12 June 2013.
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For further information please contact:
Creston plc | + 44 (0)20 7930 9757 |
Don Elgie, Group Chief Executive | |
Barrie Brien, COO/CFO | |
M:Communications | +44 (0)20 7920 2339 |
Elly Williamson/Matthew Neal |
About Creston plc
Creston plc (LSE: CRE) is a marketing services company focused on insight-led communications. The Group delivers a range of marketing services, including advertising, brand consultancy, CRM, digital and direct marketing, health communications, local marketing, market research, PR and social media marketing to a broad spectrum of blue-chip global clients. Our insight companies give us a real edge, providing the analytic intelligence to enable us to truly understand, influence and inspire consumers and it's that insight-led intelligence that drives our creativity. www.creston.com