22 May 2008 10:30
22 May 2008
ELECTRIC WORD PLC
AGM STATEMENT
At today's Annual General Meeting of Electric Word plc, the specialist information publisher, the Chairman, Peter Rigby, said:
"Electric Word has enjoyed a positive start to the year in both our education and sport market sectors. Current trading is in line with the Board's expectations and on a like-for-like basis ahead of the same period last year.
The Board has also been very encouraged by the progress of the 2007 acquisitions.
Integration of Speechmark, the publisher for speech therapists and other special needs professionals which was acquired in October, has proceeded smoothly and the business will contribute as anticipated to 2008 profits.
MyChild, the subscription-based education magazine for parents, is fully demonstrating the growth potential it was acquired for and represents a significant opportunity for internal investment to drive future profits. The Group increased its stake in MyChild from 10% to 50.1% in November 2007 in relation to which it will make a payment of £313k in deferred consideration on 31 May 2008. The Group had also made a provision to replace £200k of debt owed by MyChild to the vendor at the same time; this payment will now be £50k and is unlikely to be required in the current year. The Group has the option to acquire the remaining 49.9% shareholding from December 2008 to March 2009, which it expects to exercise, with no further deferred consideration anticipated.
While no business can assume immunity from the current economic environment, advance subscription revenues continue to be a source of strength for Electric Word and bookings for future conferences remain strong. As a result, the Board is confident of the future of the Group and 2008 looks set to be another year of continued growth."
ENDS
Enquiries:Julian Turner, Chief Executive, Electric Word 020 7954 3470Tim Spratt/Helen Thomas, Financial Dynamics 020 7831 3113