16th Dec 2009 07:00
Embargoed until 07.00a.m.
16th December 2009
Electric Word plc
("Electric Word" or the "Company")
Trading Statement
Electric Word plc, the specialist information publisher, today announces the following update for the year ended 30th November 2009 prior to entering its close period and ahead of its preliminary results announcement on 16 February 2010.
Group adjusted profits before tax for 2009 are expected to be in line with market expectations and ahead of 2008. As indicated at the half year, margins are expected to be lower in the Professional Education division as a result of the investment in building the list of Optimus schools management books and lower profits in the Incentive Plus catalogue business. Adjusted profits are expected to be ahead of 2008 in the Sport Business division and substantially so in the Specialist Consumer division following the successful restructuring of the My Child educational website for parents.
Central Group costs for the year have been maintained at 2008 levels and borrowing costs have reduced reflecting reductions in both interest rates and the Company's debt levels following the successful fundraising in August 2009. As a result of the placing, the Group has redeemed preference shares and reduced net debt during 2009 by £2.3m to below £1.5m. The costs of reviewing the Group's fundraising options will be included alongside some business reorganisation costs in a one-off charge in 2009 of less than £0.3m.
Julian Turner, Chief Executive of Electric Word, commented:
"2009 has demonstrated the robustness of Electric Word's markets, products and combination of revenue streams. The skill of our staff in generating revenue and sustained profits from our niche communities is a key strength of our business and has enabled us to increase profits in a difficult year while continuing to invest in future growth."
- ENDS -
Enquiries:
|
Julian Turner, Chief Executive, Electric Word |
020 7954 3470 |
|
Nicola Biles/Tim Spratt, Financial Dynamics |
020 7831 3113 |
|
Andrew Potts/Ashton Clanfield Panmure Gordon |
020 7459 3600 |
Note:
Adjusted profit refers to the Group's definition of adjusted EBITA. This excludes amortisation and impairment of goodwill and intangible assets, exceptional gains and costs (non-trading and of a non-recurring nature), the tax impact of the adjusting items, the use of tax losses and tax credits from recognition of tax losses, and notional accounting charges. The amount for notional accounting charges is not a cash item and encompasses both the unwinding of discounts on preference shares and provisions and the charge for share based payment costs.
Ticker: ELE.L ELWO.L (Reuters)
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