6th Oct 2015 07:16
LONDON (Alliance News) - Marketing services and book publishing company St Ives PLC Tuesday said its new financial year has started in line with expectations, as it reported a fall in pretax profit due to one off costs for its most recently ended financial year.
For the 52 weeks to end-July the company reported a pretax profit of GBP8.8 million, down from a restated pretax profit of GBP11.9 million for the 52 weeks to August 1, as a rise in revenue to GBP344.6 million from GBP330.7 million was offset by higher selling costs, and exceptional expenses of GBP24.0 million.
Exceptional costs most related to acquisitions the company made during the year, and costs related to the closure of its Burnley site and restructuring of its former print services segment into its marketing activation segment.
On an underlying basis, excluding acquisition, restructuring, amortisation, impairment and other one-off costs, pretax profit rose to GBP33.0 million from GBP29.9 million. The company's previous year figures were restated to reclassify costs related to the company's defined benefits pension scheme as non-underlying items.
St Ives proposed a final dividend of 5.55 pence, up from 5.00 pence a year before, giving a full year dividend of 7.80 pence, up from 7.15 pence a year before.
The company attributed its revenue growth to its Strategic Marketing segment, which was boosted by acquisitions, which partly offset a 4% decline in its Marketing Activation segment, which was hit by pressure in the grocery retail sector. In its Books segment, revenue was broadly in line with the previous year.
During the year St Ives acquired mobile marketing and technology company Solstice Consulting, and following the year-end bought retail property consultancy Fripp, Sandeman and Partners.
"The new financial year has started in line with our expectations, and we continue to invest in our higher margin Strategic Marketing activities. Assuming current market conditions continue, we are confident that we will make further strategic and financial progress during the year ahead," said Chief Executive Matt Armitage in a statement.
Shares in St Ives were down 3.4% at 183.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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