St. Ives PLC Trading update (9151X)
30 November 2017 - 6:01PM
UK Regulatory
TIDMSIV
RNS Number : 9151X
St. Ives PLC
30 November 2017
30 November 2017
St Ives plc
("St Ives" or the "Group")
Trading update
St Ives, the international marketing services group, provides
the following trading update covering the three months to 3
November 2017.
Overall, trading in the period has been positive and ahead of
management's expectations, with Group revenue running approximately
4% ahead of the equivalent period last year.
Strategic Marketing
The momentum achieved during the second half of the previous
financial year has continued during the first three months of the
new financial year. Like-for-like revenue growth in the segment was
approximately 22% ahead of the equivalent period last year while
operating margins have remained strong.
The profitable growth within Strategic Marketing continues to be
driven by large new business wins, particularly within our digital
businesses, along with increased collaboration across the segment,
as highlighted in our recent full year results.
Revenue visibility continues to improve and we are broadening
the range of clients we work with as the segment grows.
Marketing Activation
Trading conditions within our Marketing Activation segment
continue to be challenging and highly competitive. Revenue for the
first quarter was approximately 4% below the equivalent period last
year and operating margins were in line with expectations. We have
taken decisive action to reduce costs and to increase efficiency
while continuing to diversify the customer base. Targeting
customers that value service and innovation, as opposed to those
focussed on price alone, remains a priority.
Books
Within our Books business, as expected, revenue for the first
quarter was approximately 12% below the equivalent period last
year, reflecting the contract loss announced in February 2017.
Operating margins were in line with expectations and we continue to
focus on managing the cost base proactively.
Balance Sheet
Net debt to underlying EBITDA of 1.6 times at the end of the
quarter was in line with the position at the end of the previous
financial year and remains comfortably within our banking
covenants.
- Ends -
For further information contact:
St Ives plc 020 7928 8844
Matt Armitage, CEO
Brad Gray, CFO
MHP Communications 020 3128 8100
Tim Rowntree / Giles Robinson / Luke Briggs
This information is provided by RNS
The company news service from the London Stock Exchange
END
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