Tangent Communications PLC Trading Statement (5769E)

TIDMTNG

RNS Number : 5769E

Tangent Communications PLC

11 February 2015

TANGENT COMMUNICATIONS PLC

TRADING UPDATE

Tangent (AIM:TNG), announces a trading update for the year to 28 February 2015. The Company now has better visibility on the full year performance. Underlying operating profit is expected to be GBP1.2m (GBP2.4m: 2014). Net cash at year end is expected to be GBP1.4m.

Diseconomies of scale notably in our property print business heightened after low sales during the Christmas period. To address this, restructuring in our Newcastle site has been carried out.

Non-recurring items relating to restructuring and moving costs for the full year are expected to total GBP0.7m.

We look to our online print business to fill capacity in the future but in the short term operating margins will remain lower.

-- printed.com sales are expected to grow in excess of 20% compared to the prior year to GBP7.6m.

-- In the run up to Christmas Tangent launched wrap.me; a consumer photo product selling personalised wrapping paper.

-- Trading at goodprint has been slower and recovery has not been forthcoming. Sales for the year are expected to be GBP2.3m (GBP3.2m: 2014).

-- Ravensworth trading has slowed since November due to a softer housing market. The next twelve months are likely to be governed by uncertainty in the run up to the general election and the effect thereafter.

-- T/OD sales are in line with expectations and will be GBP2.6m for the full year (GBP2.5m: 2014).

Tangent Snowball is performing better as a leaner business. It will take another six months to see the full impact of the changes implemented at the end of the first half.

The Company will give a full update in May with the release of the audited full year results. The Board does not expect to recommend the payment of a final dividend.

For further information, please contact:

Tangent Communications plc

Timothy Green - Chief Executive: 020 7462 6101

Canaccord Genuity Limited - Nominated adviser and broker

Bruce Garrow / Emma Gabriel: 020 7523 8350

This information is provided by RNS

The company news service from the London Stock Exchange

END

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