Interim Management Statement (2733W)
27 1월 2012 - 4:00PM
UK Regulatory
TIDMCRE
RNS Number : 2733W
Creston PLC
27 January 2012
27 January 2012
Creston plc
Interim Management Statement
Creston plc ('Creston' or the 'Group') (LSE: CRE), the Insight
and Communications Group, announces its interim management
statement for the period 1 October 2011 to date.
Trading update
For the three months to 31 December 2011 (the 'Period'), the
Group reported revenue growth of over 22 per cent compared to the
same period last year. Like-for-like1 revenue growth for the third
quarter was 7 per cent, compared to the same period in the prior
year. Year to date, like-for-like revenue growth of 5 per cent has
been achieved.
Despite this revenue growth, the Board's expectation for
Headline2 PBIT3 for the full year is lowered to be slightly below
that of the prior year. The anticipated reduction in Headline PBIT
is as a result of a shortfall in fourth quarter new business, the
costs associated with staffing-up to service the expected increase
in revenue, client projects being delayed until the new financial
year and operating losses associated with the start-up ventures in
the year. Appropriate actions have begun to align operating costs
to the lower expected sales levels, the effects of which will
predominantly be realised from the start of the new financial
year.
Insight
The Insight division had a good third quarter growth in revenue,
which exceeded the preceding second quarter as well as quarter
three of the prior year. This growth has been achieved by the
addition of new clients in the first half of the year, such as the
BBC and others, which cannot currently be named. In the Period, the
division established Vitaris, a new healthcare research
consultancy, targeting new and existing health clients. This new
product offering was launched later than expected and accordingly
the contribution to the current financial year will be below
original expectations. This business is expected to be margin
accretive in the next financial year.
Although the Insight division's performance to date has shown
positive revenue growth, the Board expects a revenue decline for
the ICM business in the fourth quarter caused by a shortfall in new
business and a delay of projects into the new financial year. This
is disappointing considering the improving performance of the
Insight division and the new client wins earlier in the year. The
necessary actions are being taken to align operating costs to the
lower expected level of sales for the remainder of this, and future
financial years. However, the savings generated from actions
already underway will have minimal impact in the current financial
year and the revenue decline will have a direct impact on fourth
quarter profitability.
Communications
The Communications division has continued its positive revenue
growth in the third quarter versus the first half of the year and
compared to the same period last year. This growth has been
achieved due to the successful addition of new clients, such as
Brother, Open University, Sue Ryder and the continued expansion of
activity for existing clients, such as the successful addition to
the Unilever European digital roster.
The growth in full year revenue for the Communications division
is broadly in line with the Board's expectations, however, this
incremental revenue will not fully convert to PBIT due to the
slower than budgeted financial performance of the start-ups during
the year, such as Creston Unlimited and the Nelson Bostock Group's
public relations office in Hong Kong. Whilst such organic
initiatives are generally loss making in their first year of
trading, this strategy of investing in start-ups remains important
to the long term growth of the division.
Health
TheHealth division has materially increased its revenue and PBIT
in the third quarter versus the prior year, due to the growth of
its presence in the US. The addition of the US public relations
companies to the division has strengthened its global PR capability
and as a consequence there are an increasing number of on-going
global pitches, in addition to the recent World Hepatitis Alliance
win.
Additionally, the division's new local health offer (launched as
Grapevine in the second quarter) has already won its first client
and is set to benefit from the Government's recent announcement to
ring fence GBP5 billion for local government public health.
The decline however in new business opportunities announced in
the first half of the year has had the expected impact on the third
quarter with a small like-for-like revenue decline. While there has
been an improvement in new business opportunities during the second
half with some new client wins, this will not have as big an impact
this financial year as was expected. In addition, fourth quarter
delays to client budgets are also expected to push further revenue
back into the next financial year.
Outlook
The Group has reported good like-for-like revenue growth of 7
per cent in the third quarter and although the full year
like-for-like and reported revenue growth is expected to be
positive, fourth quarter revenue will be lower than the Board's
expectations. Despite this revenue growth, Headline PBIT is
expected to be slightly below that of the prior year as detailed
above. Since the Group's performance was weighted to the second
half of the year and especially the fourth quarter, the cost
reductions that have been implemented will have minimal impact on
this financial year, but will improve profitability on future
revenue.
For further information please contact:
Creston plc + 44 (0)20 7930 9757
Don Elgie, Group Chief Executive
Barrie Brien, COO/CFO
M:Communications +44 (0)20 7920 2339
Elly Williamson
About Creston plc
Creston plc (LSE: CRE) is a marketing services company focused
on insight-led communications. The Group delivers a range of
marketing services, including digital marketing, market research,
health communications, public relations, direct marketing,
advertising and brand consultancy to a broad spectrum of blue-chip
clients. All our companies share a common commitment to
understanding, influencing and inspiring consumers on behalf of our
clients and to creating value through innovative collaborative
working. www.creston.com
1 Like-for-like compares current year performance to prior year
performance, excluding the results from any acquisitions.
2 Headline results reflect the underlying performance of the
Group and excludes acquisition, start-up and restructuring related
costs, deemed remuneration charges and notional finance costs.
3 Profit before finance income, finance costs and taxation
(PBIT).
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSEAFFKADLAEAF
Conduit (LSE:CRE)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Conduit (LSE:CRE)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024