PTCM.L Regulatory News (PTCM)

21 November 2013

PORTA COMMUNICATIONS PLC

(the "Group" or "Porta")

Trading Update

Porta Communications plc, the AIM quoted international marketing and communications business is pleased to announce an update on its trading performance for the second half of 2013.

Trading in October has been extremely buoyant and the early indications for the remainder of the year are even better. For the last quarter of 2013, Porta is looking to generate a positive EBITDA after start-up costs and an unexpected large bad debt provision at the TTMV advertising agency. The expected level of trading in the last quarter should be more than sufficient to offset the losses incurred in the third quarter leaving the second half of the year with a positive EBITDA result after all costs.

The Group has benefited from numerous significant new business wins in the period. It is most pleasing that many of these have been won due to the broad offering that the Group can now offer across multiple disciplines and territories.

Newgate Communications, the global public relations division has finished the year on a very strong note with a marked increase in fee levels and client wins. As a result of a number of IPO and ongoing retained client wins, the Newgate Threadneedle business will produce record figures for the final quarter and the year as a whole. In addition, the start-up business in the UK is now profitable on a month by month basis, following a number of new business mandates.

The Hong Kong and Singapore offices are both taking market share in very competitive market conditions and should both make a positive contribution in 2014. The Australian business, which was a much bigger start-up than originally expected, has traded ahead of management expectations and is now likely to finish the year with strong profits in each of the last three months which is particularly pleasing given that it only launched in June this year.

The two advertising agencies, TTMV and 21:12, whilst showing a positive trend in the second half have performed below internal budgets. TTMV experienced a slowdown in advertising spend in August/September and October but will finish the year strongly despite a £75,000 bad debt provision. The financial agency 21:12 which started operations in January this year broke even in October and the new business pipeline gives confidence for a much better performance in 2014.

All areas of the business are seeing very positive signs of increased spending which, combined with an improvement in financial markets, bodes very well for the Group. Given the expected exit run rate of revenue, gross income and EBITDA the board is extremely confident that the Group will continue to experience strong growth in 2014. 

-ENDS-

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