11 Feb 2015 07:00
TANGENT COMMUNICATIONS PLC
TRADING UPDATE
Tangent (AIM:TNG), announces a trading update for the year to 28 February 2015. The Company now has better visibility on the full year performance. Underlying operating profit is expected to be £1.2m (£2.4m: 2014). Net cash at year end is expected to be £1.4m.
Diseconomies of scale notably in our property print business heightened after low sales during the Christmas period. To address this, restructuring in our Newcastle site has been carried out.
Non-recurring items relating to restructuring and moving costs for the full year are expected to total £0.7m.
We look to our online print business to fill capacity in the future but in the short term operating margins will remain lower.
· printed.com sales are expected to grow in excess of 20% compared to the prior year to £7.6m.
· In the run up to Christmas Tangent launched wrap.me; a consumer photo product selling personalised wrapping paper.
· Trading at goodprint has been slower and recovery has not been forthcoming. Sales for the year are expected to be £2.3m (£3.2m: 2014).
· Ravensworth trading has slowed since November due to a softer housing market. The next twelve months are likely to be governed by uncertainty in the run up to the general election and the effect thereafter.
· T/OD sales are in line with expectations and will be £2.6m for the full year (£2.5m: 2014).
Tangent Snowball is performing better as a leaner business. It will take another six months to see the full impact of the changes implemented at the end of the first half.
The Company will give a full update in May with the release of the audited full year results. The Board does not expect to recommend the payment of a final dividend.
For further information, please contact:
Tangent Communications plc
Timothy Green - Chief Executive: 020 7462 6101
Canaccord Genuity Limited - Nominated adviser and broker
Bruce Garrow / Emma Gabriel: 020 7523 8350