23 Feb 2012 07:00
Tangent Communications plc
Pre-close trading update
Tangent Communications plc announces a trading update for the year ending 29 February 2012.
2011-12 will see group trading in line with market expectations. Tangent has increased the high quality revenues in the business as margins rose from slightly lower (3%) revenues.
Tangent Snowball performed well throughout the year delivering margins of 10% across the largest revenue segment in the group. New business was especially strong including; Aston Martin, Carlsberg (Global), Richemont and Tata. The income from new clients is made up of web development (e-commerce) and CRM (loyalty), with only 3% of revenues coming from print services. This trend is set for 2012-13, when further investment into the technology framework is expected to enhance margins and generate new prospects.
Ravensworth's lacklustre estate agency revenues represent a diminishing proportion (now below 25%) of group revenues creating spare capacity. This has been somewhat filled by the strong 100% revenue growth from printed.com where customer numbers now exceed 5,000. Further investment is planned for 2012-13 to reach the fuller potential of the online and on-demand print services.
Outlook
We are positive in our outlook for 2012-13 with adjusted forecasts to the further anticipated (5%) reduction in estate agency print revenues. All other revenue streams remain strong and as awareness of Tangent Snowball and printed.com grows we expect to attract like-minded people and businesses to increase the scale of the group.
For further information, please contact:
Tangent Communications plc 020 7462 6100
Timothy Green, CEO
Collins Stewart Europe Limited 020 7523 8350
Jamie Adams / Matt Goode