TNG Tangent

 

TIDMTNG 
 
RNS Number : 6712M 
Tangent Communications PLC 
03 February 2009 
 

3 February 2009 
 
 
Tangent Communications plc ("Tangent") 
 
 
Trading Update 
 
 
 
 
The Board of Tangent wish to update the market on trading for the current 
financial year. While Tangent continues to be profitable in the second half to 
28 February 2009, sales at Ravensworth, our print business for the property 
sector, have continued to decline. As a result profits will be below market 
expectations for the year ending 28 February 2009. 
 
 
As we prepare for our new financial year (starting 1 March 2009) the outlook is 
as follows: 
 
 
Tangent One, our digital agency, secured its largest ever contract in the fourth 
quarter of this financial year. The contract is to build five transactional 
websites. Business from our existing principal clients continues to grow and in 
the current climate we expect smaller, more cost effective agencies, such as 
Tangent One, to increase market share. We expect this business to grow during 
the new financial year. 
 
 
Tangent Direct, our direct marketing business, continues to benefit from the 
current business climate. Tangent Direct primarily focuses on results based 
marketing and getting customers into local stores. Promotional activity is key 
to our customers as they look at new ways to get customers into stores. We 
continue to see marketing spend move from traditional above the line channels to 
below the line and more accountable ones. 
 
 
Tangent On Demand is starting to generate new business from its new local 
surroundings (post the relocation) and we expect this to accelerate and provide 
revenue growth in the year ahead. 
 
 
Ravensworth will experience another challenging year. We expect the first half 
of the financial year to February 2010 to continue to trend down against the 
previous year as the main impact of the decline in the property market was only 
felt from May 2008 onwards. However, we are starting to see gains in market 
share as the smaller less stable competitors are now starting to close and their 
clients are moving to Ravensworth. We believe though it is prudent not to 
forecast improvement from Ravensworth until 2010. 
 
 
Tangent remains profitable and our net cash position today is GBP2.7m and we 
expect our strong cash position to be maintained during the financial year to 
February 2010. 
 
 
The current economic environment has resulted in a significant increase in 
distressed sale opportunities and we continue to monitor the market place for 
acquisition opportunities which we believe will add value to the group. 
 
 
 
 
For further information, please contact: 
+-------------------------------------------------+------------------------------+ 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
| Tangent Communications plc                      | 020 7462 6100                | 
+-------------------------------------------------+------------------------------+ 
| Nicholas Green (Joint CEO)                      |                              | 
+-------------------------------------------------+------------------------------+ 
| Graeme Harris (Finance Director)                |                              | 
+-------------------------------------------------+------------------------------+ 
|                                                 |                              | 
+-------------------------------------------------+------------------------------+ 
| Collins Stewart                                 | 020 7523 8350                | 
+-------------------------------------------------+------------------------------+ 
| Adian Hadden/Stewart Wallace                    |                              | 
+-------------------------------------------------+------------------------------+ 
 
 
About the Company: 
Tangent is a leading integrator of technology and marketing strategy, delivering 
for its clients improved customer engagement and revenue through direct mail, 
web, email, mobile and print. 
 
 
Tangent employs 160 people across three locations in London, Newcastle and 
Cheltenham and is traded on AIM (AIM: TNG). Clients include Borders Books, 
Citroen, Gala Coral Group, Halifax, Homeserve, The Labour Party, SAP, and 
Wolseley Group. 
 
 For more information please visit www.tangentplc.com 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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