1 December 2008
St Ives plc - Interim Management Statement
At its Annual General Meeting, to be held at 11.00 a.m. today, St Ives plc will
make the following announcement, which will comprise its Interim Management
Statement referring to the period from 2 August 2008 to the present.
Total sales for the 13 week period to 31 October 2008 were 3.0% greater than
the comparable period for the previous year. Underlying sales, after adjusting
for currency movements and the disposal of the Dutch music and multimedia
business, showed growth of 4.7%. Overall, the results for the first quarter
were broadly in line with the expectations outlined on 21 October 2008 in our
preliminary results statement.
Since 2 August 2008, demand for books has remained steady and we continue to
benefit from our market leading position and reputation for delivering
unrivalled customer service. Magazine volumes remain extremely volatile as
paginations are under pressure due to reductions in advertising spend, leading
to a squeeze on pricing and margins. We have, to a degree, been able to offset
this effect through winning new titles and continued efficiency improvements.
Demand for point-of-sale products continues to be buoyant with activity levels
increasing in the run up to Christmas. Demand for direct response and
commercial and also exhibitions and outdoor media remains volatile and projects
have been subject to short notice cancellations reflecting their discretionary
nature. Partially countering these effects are the benefits being gained from
our recent Royal Mail and Sainsbury's contract wins along with our continued
success with cross-selling to existing group customers.
The US business continues to face significant challenges due to volatile demand
within an oversupplied market. Improved efficiencies and cost reductions are
offsetting some of these pressures.
There has been no significant change in the company's financial position since
1 August 2008 and cash flow remains robust.
Overall, the economic outlook remains uncertain, visibility is extremely short
and rising input costs coupled with volatility in demand is increasing the
pressure on margins. Our strategy of selling the whole range of the Group's
services to both new and existing customers and our continued focus on costs is
partially mitigating the effect of these volume fluctuations but some of this
incremental volume is at significantly lower prices.
For further information please contact:
St Ives plc 020 7928 8844
Brian Edwards, Chief Executive
Matt Armitage, Finance Director
Smithfield 020 7360 4900
John Antcliffe
Rupert Trefgarne
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