TNG.L Regulatory News (TNG)

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