Cassell PLC - Trading Statement
December 12 1997 - 9:51AM
UK Regulatory
RNS No 6383t
CASSELL PLC
12th December 1997
CASSELL PLC
Trading update
At the time of the announcement of Cassell's interim results for the six
months ended 30 June 1997, attention was drawn to the adverse influences of
the strong pound and changes of agency arrangements on our international
sales. These factors have continued to impact on the overseas sales of both
our academic and general divisions, a position which has been further
exacerbated by slower than expected UK sales.
The best-sellers in the general division, mentioned in the interim statement,
have been well received by the trade and the drive to increase margins in that
division has produced the anticipated improvement but this has not been
sufficient to offset the adverse factors referred to above.
Consequently, the Board believes that, excluding the profit on the sale of the
children's list reported at the interim stage, profit before tax for the year
ending 31 December 1997 will be significantly below market expectations and
last year's level.
The current market situation is disappointing but the Board considers that its
strong programme for 1998, which includes a new Nick Hornby title, the Cassell
Thesaurus and the Cordon Bleu range, will provide the springboard for a
successful year. The Board believes that the improved gross margins of 1997
will be further enhanced in 1998 through focusing on key selling titles in
line with trends in the consumer trade. New marketing initiatives in the
academic division are expected to redress current UK sales shortfalls and
steps are also being taken to develop the marketing of our academic titles in
the United States. In addition, a review is being made of all Group
overheads.
The Board expects that the above actions will assist in the Group achieving a
more encouraging performance in 1998.
Enquiries:
Cassell plc
Philip Sturrock, chairman and chief executive
Tel: 0171 420 5555
END
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