St. Ives PLC Trading Statement (5858N)
August 10 2017 - 2:00AM
UK Regulatory
TIDMSIV
RNS Number : 5858N
St. Ives PLC
10 August 2017
10 August 2017
St Ives plc
("St Ives" or the "Group")
Year-end trading update
St Ives, the international marketing services group, is today
providing a year end trading update ahead of the announcement of
its final results for the year to 28 July 2017, which will be
released on 3 October 2017.
The board reports that the overall results for the year are
expected to be at the top end of the range of current market
expectations.
Strategic Marketing
During the second half of the financial year, trading across our
Strategic Marketing segment has continued to improve, with
performance significantly ahead of the equivalent period in the
prior year. Revenue for the second half was approximately 17% ahead
of the equivalent period last year and, excluding the effects of
currency movements, like-for-like revenue growth was c12%.
We continue to be encouraged by the performance of the segment,
which has now returned to strong like-for-like revenue growth, with
a significantly improved operating margin.
Marketing Activation
Trading conditions within our Marketing Activation segment
continue to be challenging, as reported in June 2017. However,
while margins remain under pressure, second half revenue was
approximately 2% ahead of the equivalent period in the prior
year.
The cost reduction measures initiated within the segment have
been implemented as planned and on schedule, and the resultant
benefits are now helping to mitigate this margin pressure.
Books
Within our Books business, revenue for the second half was
approximately 8% ahead of the equivalent period last year.
The previously announced cost reduction and restructuring
measures have now been successfully implemented, which are expected
to ease margin pressures going forward.
Balance Sheet
We continue to look for opportunities to further strengthen the
Group's balance sheet following the recent sales of non-core
properties in Peterborough for GBP5.7 million and Roche for GBP4.2
million, which successfully reduced debt and created further
headroom against our banking covenants.
Defined Benefits Pension Scheme
The Group has reached agreement with the Trustees to increase
the contributions to the Scheme from GBP2.4m per annum to GBP3.0m
per annum. The increase will apply from April 2016 and consequently
the contribution in the financial year to 3 August 2018 will be
GBP3.8m and revert thereafter to GBP3.0m.
- Ends -
For further information contact:
St Ives plc 020 7928 8844
Matt Armitage, CEO
Brad Gray, CFO
MHP Communications 020 3128 8100
Tim Rowntree / Giles Robinson / Luke Briggs
This information is provided by RNS
The company news service from the London Stock Exchange
END
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