7th Oct 2014 07:39
LONDON (Alliance News) - St Ives PLC Tuesday expressed confidence in seeing further strategic and financial progress in the current year, as two acquisitions helped boost its pretax profit in the financial year ended August 1.
The marketing services and print group proposed a total dividend of 7.15 pence per share, up from 6.50 pence a year before.
St Ives posted a pretax profit of GBP11.9 million in the recent financial year, up from GBP5.5 million the year before, as revenue rose to GBP330.7 million from GBP322.7 million and it posted lower exceptional costs of GBP17.5 million, compared to GBP19.8 million a year before.
The previous year's exceptional costs included GBP6.1 million in redundancies and other charges.
Revenue growth was boosted by two acquisitions during the year. St Ives acquired digital marketing agency Realise Holdings Ltd for an initial GBP21.7 million in cash and shares in March, and healthcare-focused consulting and communications services firm the Health Hive Group Ltd for GBP21.0 million in cash and shares in May.
These acquisitions helped boost revenue in St Ives's marketing services segment to GBP98.1 million from GBP65.9 million, and this helped to offset a decline in revenue at its print services division to GBP229.5 million from GBP251.2 million, due to the disposal of its St Ives Direct Bradford Ltd.
St Ives sold St Ives Direct Bradford in September last year, receiving GBP3.8 million. The renamed business appointed an administrator in July, and a deferred consideration of GBP4.2 million that had been agreed remains unpaid. St Ives said Tuesday it does not expect to receive this payment.
"We now have a profitable and cash generative Print Services businesses, and a substantial Marketing Services proposition which has been successfully expanded and strengthened through acquisition over the past year," Chief Executive Matt Armitage said in a statement.
St Ives said its current year has started well, and in line with its expectations as improved marketing spend on the back of the UK's economic recovery is helping to boost its Marketing Services segment.
Shares in St Ives are trading flat at 200.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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