Creston PLC Trading Update and Acquisition (9242K)
22 4월 2015 - 3:00PM
UK Regulatory
TIDMCRE
RNS Number : 9242K
Creston PLC
22 April 2015
22 April 2015
Creston plc
('Creston' or the 'Group')
Trading update and Acquisition
Trading update
Creston plc, the marketing communications group, provides an
update on trading for the year ended 31 March 2015 ahead of its
preliminary results for the period, which are scheduled to be
announced on Tuesday 9 June 2015.
Following a positive second half, the Group's preliminary
results for the period are expected to be in line with consensus,
showing growth in revenue, Headline PBT and Headline Diluted EPS.
Revenue is expected to be GBP76.9 million (2014: GBP74.9 million),
with cash of GBP8.3 million as at 31 March 2015.
Acquisition
Creston also announces the acquisition of 51 per cent of the
share capital of How Splendid Ltd ('Splendid'), a London-based
digital design and development consultancy.
On completion there is an initial cash consideration payment of
GBP8.7 million funded from Creston's existing cash resources and
Splendid is expected to retain net current assets of GBP2.1
million, including cash of GBP1 million. A balance sheet surplus
payment may be made of up to GBP500,000 for any excess net current
assets in the completion balance sheet in excess of the pre-agreed
minimum requirement. There will be a further final cash
consideration payment of up to GBP7 million in June 2017 for the 51
per cent holding, based on average profit before interest and tax
from April 2015 to March 2017.
For the remaining share capital there are no put options,
however Creston will have a call option over 24 per cent from April
2017 for a value up to GBP8.6 million and for the remaining 25 per
cent from April 2019 for a value up to GBP11.9 million. The
consideration, payable in cash, for both these call options will be
calculated at a pre-agreed multiple applied to the average profit
before interest and tax for the year in which the call option is
exercised and the two years preceding the call.
For the financial year ended 31 March 2014, Splendid's audited
statutory accounts reported revenues of GBP4.0 million and a profit
before tax of GBP1.2 million with gross assets of GBP1.9 million.
For the financial year ended 31 March 2015, Splendid has
experienced material growth and is expected to continue its year on
year growth in revenue and profit before tax. Post-acquisition,
Splendid will be fully consolidated into the Group accounts and
will be earnings enhancing in this current financial year.
Founded in 2003 and based in London, Splendid comprises User
Experience ("UX") specialists, designers and developers. It
delivers work for a variety of multinational, blue-chip clients
across the finance, utilities, retail and media sectors including:
Barclaycard, Boots, eBay, Gamesys, News UK, Skrill, SSE and Star
Alliance. While Splendid's service is focused on the UX between a
brand and a customer, its delivery can range from developing a
client's future digital strategy for consumer and brand
interaction, to working alongside system integrators to ensure
systems are optimised for a consumer's usage, to designing,
building and managing client websites.
The acquisition fits perfectly with Creston's strategy to
continue growing its digital marketing consultancy offer, which
will help clients with a key element of their brand's digital
transformation. Splendid will be rebranded Splendid Unlimited and
the complementary services of the two businesses are expected to
create significant cross selling and referral opportunities.
Commenting on the acquisition, Barrie Brien, Group Chief
Executive of Creston plc, said: "Splendid is an excellent business
which enhances our Creston Unlimited offer perfectly. As part of
Creston Unlimited, Splendid's consultancy expertise, which focuses
on evolving the way brands do business in the digital world, will
complement the Group's marketing communications strength and
further evolve our compelling integrated digital services
capability."
Splendid Unlimited and the Group will continue to benefit from
the experience and expertise of Splendid's three founding partners
and shareholders, Paul Bishop, Alex Eicke and Dan Morris, who will
remain as Managing Partners.
Paul Bishop, Managing Partner of Splendid added: "We are really
excited to be joining the Creston family. Having looked long and
hard to find the right partner for our next stage of growth, we
believe Creston Unlimited's range of services and attitude really
add to our core proposition of digital transformation and allow us
to create bigger conversations with our clients."
-ends-
For further information on the announcement please contact:
Creston plc +44 (0)20 7930 9757
Barrie Brien, Group Chief Executive
Kathryn Herrick, Chief Financial Officer
Bell Pottinger +44 (0)20 3772 2491
Elly Williamson/Lucy Stewart
About Creston plc
Creston plc (LSE: CRE), incorporating the Creston Unlimited
group offer, is a marketing communications group delivering a range
of digital technology-based marketing solutions to blue-chip global
clients. Encompassing consultants and discipline experts from
across the industry and beyond, Creston Unlimited unlocks the power
of creative collaboration to realise the opportunities that exist
for brands and businesses in today's rapidly evolving world.
www.creston.com / www.creston-unlimited.com
About How Splendid Ltd
Splendid is a multi-channel, experience design and technology
consultancy based in Soho, London with a global client base.
Founded in 2003 Splendid specialises in consistently delivering
innovative user experience and technology solutions for major
brands. www.howsplendid.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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