4 Mar 2013 07:00
Tangent Communications PLC ("Tangent" or the "Company)
Pre close trading update
Underlying operating profit in line with expectations for the year to 28 February 2013
Online
Revenues grew at printed.com by 99 per cent. on the prior year to £3.95m. This together with the acquisition of Goodprint UK Ltd ("Goodprint") in November 2012 marks a significant transformation of Tangent into an online retailer.
The Online business uses key performance measures to monitor its business performance. These measure revenues, number of new customers, customers spend and how much it costs to acquire and retain customers.
For the 3 month period since the acquisition of Goodprint, performance from the printed.com, goodprint and smileprint websites was as follows:
·; revenues increased to £2.2m (prior year comparative £1.7m);
·; the number of new customers acquired was 20,387 representing an increase of 20 per cent. on the prior year period;
·; average order values have increased to £50 (prior year £48);
·; the cost of acquiring and retaining customers was running at 26 per cent. of sales; and
·; European sales increased to £0.4m as benefits from website optimisation start to take effect
Tangent is focused on widening its product range and international expansion. printed.com's Online Editor tool is expected to be live in Quarter 2 of the financial year enabling customers to design their own products. This will act as the catalyst for further product launches and provide a competitive edge.
Other parts of the business remain satisfactory. As previously announced, the contraction of Tangent Snowball's contract with Pearson in Australia has impacted the second half of the financial year and will continue to do so until its completion later in 2013. The newly won PepsiCo business is expected to contribute in 2013/14 and new business initiatives in the Impulse market are encouraging.
Ravensworth's revenues continue to represent a diminishing proportion of group revenues creating spare capacity which is being used to satisfy the increasing demand generated from Tangent's websites.
Tangent's underlying operating profit remains in line with expectations for the year to 28 February 2013.
Enquiries
Tangent Communications PLC
Seema Paterson - Corporate Development
seema.paterson@tangentplc.com
Tel 020 7462 6170
Canaccord Genuity - Nominated Adviser and Broker
Bruce Garrow
Tel 020 7523 8350