Creston PLC Interim Management Statement (9929W)
04 2월 2013 - 4:00PM
UK Regulatory
TIDMCRE
RNS Number : 9929W
Creston PLC
04 February 2013
4 February 2013
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 2012 to date.
Group Headline(1) PBIT(2) grew for the three months to 31
December 2012 (the 'Period') compared to the strong prior year
period, driven by a Headline PBIT improvement in all three
divisions. The Group has also had a good recent new business
performance winning some significant new clients and additional
brands from existing clients.
Reported Group revenue for the year to date is flat, while Group
revenue for the Period declined as expected by 3 per cent compared
to the same period last year. On a like-for-like(3) basis, Group
revenue for the year to date declined by 7 per cent, and for the
Period declined by 8 per cent compared to the same prior year
periods.
Communications
The division grew its Headline PBIT for the Period compared to
the prior year period despite the decline in revenue, which was
principally driven by the cessation of a client's budget as
previously reported in the prior year. The Board remains focussed
on replacing this lost revenue, but this will impact the division's
FY13 trading and as a consequence divisional revenue and Headline
PBIT for the full year is expected to be lower than the prior
year.
New business wins during the Period included the social media
account for Durex, the division's first Reckitt Benckiser brand; a
CRM programme across France and Portugal for Danacol, part of
Danone; and, following work with EE and T-Mobile, the corporate and
consumer PR for Orange.
Health
TheHealth division increased its reported revenue and Headline
PBIT in the Period versus the prior year period, owing to the full
quarter effect of The Corkery Group acquisition. For the full year,
the division also expects reported revenue and Headline PBIT growth
and this is despite a decline in like-for-like revenue in the
Period versus the prior year period.
The Board is pleased with the integration of its latest
acquisition DJM Digital Solutions Ltd ('DJM'), and the positive
impact it has already had on creating and converting new business
opportunities, particularly as part of an inter-agency team.
Indeed, Creston Health has recently been appointed by Gilead to
look after its Hepatitis C business across Europe and Australia.
This puts in place the first major global piece of business to
comprise all the Creston Health agencies, including DJM and the
Group looks to build on this success with future client pitches.
(1) Headline results reflect the underlying performance of the
Group and excludes acquisition, start-up and restructuring related
costs, deemed remuneration charges, non-recurring property-related
costs, movement in fair value of deferred consideration and
notional finance costs.
(2) Profit before finance income, finance costs and taxation (PBIT). (3) Like-for-like excludes the results from any acquisitions made during the current year, it compares current year performance to the prior year, adjusting the current year to only include the results of prior year acquisitions for the commensurate period of ownership.
Insight
The division's Headline PBIT showed a small increase during the
Period against the prior year period, as a result of the management
action taken earlier in the year and despite the expected decline
in revenue. Quarter on quarter ICM continues to demonstrate
progress and it has reported improvements in its Headline PBIT.
Meanwhile the rest of the division had a strong Period, with both
revenue and Headline PBIT growth compared to the prior year period
and it is expected to continue delivering a strong performance into
the fourth quarter.
Cash flow
Following a strong cash conversion, with operating cash flow
ahead of Board expectations, the Group expects to be in a net cash
position at the year end.
In line with the Group's stated co-location strategy, on 7
January 2013 it completed the signing of a lease for 10 Great
Pulteney Street, in London's Soho. From May 2013 onwards, all of
Creston's London offices will start to co-locate into the one
property. On signing the new lease, the Group received a one-off
cash payment of GBP7.2 million (including VAT) in relation to a
reverse premium and agreed dilapidations obligation, which is in
addition to the above cash position.
Save As You Earn (SAYE) scheme and share buyback
In January 2013 the Group launched a new three year SAYE share
incentive scheme for its employees. In addition to supporting the
retention and motivation of its talent, the Group believes the
scheme is also beneficial in aligning the interests of its
employees with those of existing shareholders. In order to avoid
any dilution from the SAYE scheme, the Group will shortly commence
a share buyback programme. The invitation to join the SAYE scheme
closes on 8 February 2013 and the Group will update the market on
the scheme's uptake and subsequent share buyback programme in due
course.
Outlook
While we remain cautious in light of the macro-environment and
on-going market volatility, the Group is pleased with the
integration of its latest acquisition, DJM Digital Solutions, and
the number of new business opportunities it continues to see and
convert across the wider business.
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/Matthew Neal
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 advertising, brand consultancy, CRM,
digital and direct marketing, health communications, local
marketing, market research, PR and social media marketing to a
broad spectrum of blue-chip global clients. Our insight companies
give us a real edge, providing the analytic intelligence to enable
us to truly understand, influence and inspire consumers and it's
that insight-led intelligence that drives our creativity.
www.creston.com
This information is provided by RNS
The company news service from the London Stock Exchange
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