Last checked at 30 Jan 2009 11:52
TMN Group plc - Trading Statement
With the end of the Group's 3rd quarter, it is clear that further retrenchment in the UK media sector is impacting second half revenue at TMN Group plc ("TMN").
In response, TMN has implemented a programme of staff reduction and other cost containment, in order to ensure the Group ends the year profitable and cash generative.
The savings will have a minimum positive impact of at least £300k in the remainder of this financial year and are the equivalent of a £1.15m reduction in costs over a full year.
The Group naturally regrets having to reduce staff levels and is being rigorous in controlling non-staff expenditure to limit the impact on individuals. Staff cuts will be made across the company, including Central. As a result of the continued decline in performance, profit will be approximately 50 per cent below the Board's expectations for the full year.
Our largest division, AffiliateFuture, which was acquired just under a year ago, has recorded some of its highest ever sales days in January 09 and is performing well, having gone through a structural and technical review and a system upgrade to handle further growth. Research has benefited from the continued growth of its media- and finance-focused products. However, Display advertising continues to be challenging in all territories. In two smaller divisions, trading has been particularly disappointing and they are being substantially re-organized.
The media market is unstable both in the UK and in the other territories in which we operate. The Board is fully committed to securing a profit for the year - albeit below previous expectations. The cuts we are making will ensure we generate sufficient cash to meet all our banking commitments even at the lowered trading levels.
Chairman Peter Harkness commented, "The profound impact that the recession is now having on trading across the display advertising spectrum is universally recognized. Cost management is therefore the top priority at TMN and the Board remains entirely focused on meeting our goals of generating increased profitability and cash-generation"
Enquiries:
TMN Group plc
Mark Smith, CEO
Craig Dixon, CFO
020 7440 9310
Investec plc, NOMAD and broker to TMN
Erik Anderson / Ben Poynter
020 7597 4000