30th Jul 2007 07:01
Creston PLC30 July 2007 30 July 2007 Creston plc AGM Trading Statement Interim Management Statement Creston plc, the Insight and Communications Group, is pleased to announce itsfirst interim management statement in respect of the period from 1 April 2007 to30 June 2007 and is pleased to provide a trading update ahead of its AGM at noontoday. At the AGM, Don Elgie, Group Chief Executive, will provide the following update: "Trading in the first quarter is well ahead of the same period last year, withrevenue up by 43%, or 12% on a like-for-like basis, and operating profit marginsat a consistent level, above our peer group. The BRANDCOM Division, which focuses on integrated communications, in theconsumer and healthcare sector, has enjoyed a solid start to the year. DLKW'snewly integrated client offer, incorporating on and off-line services, hasperformed well and has required investment in resource to service the growingneeds of clients in the digital communication arena. Since the Group'sacquisition of PAN in December, the healthcare agency has continued its successin winning global healthcare projects, as well as working closely with Red DoorCommunications, Creston's healthcare PR Company. The Insight Division, which specialises in online, quantitative and qualitativemarket research, has had an excellent start to the year and the on-line researchdivision, newvista research, has continued its exceptional expansion into thegroup's existing client base. Following the high number of new business wins in the second half of last year,the MARCOMS Division, which targets opportunities within the direct and digitalmarketing sector, has focused on servicing and growing these wins. Examples ofthese successes include the win of Infinity post the pan-European Nissan win andseveral new projects from Sainsbury. Although the Division has enjoyed excellentrevenue growth, there has been a short term need to rely on freelancers to copewith the increased workload. This short term resourcing issue has now largelybeen resolved. The PR Division, which provides public relations services, particularly in thetechnology, consumer and healthcare sectors, has made good progress in the firstquarter driven by a mixture of new business wins and growth from existingclients. The performance of NBC following the end of its earn out period hasbeen good and Red Door Communications has just been nominated Healthcare Agencyof the Year by its industry peers. In the year to date, new client wins have been across the whole Group andinclude: Alton Towers, Capital One, GSK, Roche Diagnostic, Royal Mail and TheStroke Association. Our cross selling synergy wins include PepsiCo, Astra Zenecaand Servier. The existing banking facility has substantial headroom and supports the Board'sobjective to fund further selective and earnings-enhancing acquisitions viaoperating cash flow and bank debt where appropriate. The Board is also reviewingits deal structure for future acquisitions, with a view to reducing theproportion of value to be satisfied in consideration shares, whilst increasingthe period over which vendors are incentivised by way of long-term lock-in. With 40% of global marketing spend occurring in the US, this clearly representsa strategically important market for several of Creston's companies and clients.The appointment of Steve Blamer has significantly raised the profile of Crestonin the US market place and we look forward to reporting on developments in thismarket. Outlook The seasonal nature of the Group's business remains unchanged with revenue andoperating profit weighted to the second half of the year. Full year trading remains in line with expectations and the Group continues toenjoy a strong pipeline of new business opportunities." For further information, please contact: Creston plc 020 7930 9757Don Elgie, Chief ExecutiveBarrie Brien, COO & CFOwww.creston.com Hogarth Partnership Limited 020 7357 9477Chris Matthews / Sarah Macleod / Sarah Richardson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Conduit Hldg