AGM Statement

Creston PLC 30 July 2007 30 July 2007 Creston plc AGM Trading Statement Interim Management Statement Creston plc, the Insight and Communications Group, is pleased to announce its first interim management statement in respect of the period from 1 April 2007 to 30 June 2007 and is pleased to provide a trading update ahead of its AGM at noon today. At the AGM, Don Elgie, Group Chief Executive, will provide the following update: "Trading in the first quarter is well ahead of the same period last year, with revenue up by 43%, or 12% on a like-for-like basis, and operating profit margins at a consistent level, above our peer group. The BRANDCOM Division, which focuses on integrated communications, in the consumer and healthcare sector, has enjoyed a solid start to the year. DLKW's newly integrated client offer, incorporating on and off-line services, has performed well and has required investment in resource to service the growing needs of clients in the digital communication arena. Since the Group's acquisition of PAN in December, the healthcare agency has continued its success in winning global healthcare projects, as well as working closely with Red Door Communications, Creston's healthcare PR Company. The Insight Division, which specialises in online, quantitative and qualitative market research, has had an excellent start to the year and the on-line research division, newvista research, has continued its exceptional expansion into the group's existing client base. Following the high number of new business wins in the second half of last year, the MARCOMS Division, which targets opportunities within the direct and digital marketing sector, has focused on servicing and growing these wins. Examples of these successes include the win of Infinity post the pan-European Nissan win and several new projects from Sainsbury. Although the Division has enjoyed excellent revenue growth, there has been a short term need to rely on freelancers to cope with the increased workload. This short term resourcing issue has now largely been resolved. The PR Division, which provides public relations services, particularly in the technology, consumer and healthcare sectors, has made good progress in the first quarter driven by a mixture of new business wins and growth from existing clients. The performance of NBC following the end of its earn out period has been good and Red Door Communications has just been nominated Healthcare Agency of the Year by its industry peers. In the year to date, new client wins have been across the whole Group and include: Alton Towers, Capital One, GSK, Roche Diagnostic, Royal Mail and The Stroke Association. Our cross selling synergy wins include PepsiCo, Astra Zeneca and Servier. The existing banking facility has substantial headroom and supports the Board's objective to fund further selective and earnings-enhancing acquisitions via operating cash flow and bank debt where appropriate. The Board is also reviewing its deal structure for future acquisitions, with a view to reducing the proportion of value to be satisfied in consideration shares, whilst increasing the period over which vendors are incentivised by way of long-term lock-in. With 40% of global marketing spend occurring in the US, this clearly represents a strategically important market for several of Creston's companies and clients. The appointment of Steve Blamer has significantly raised the profile of Creston in the US market place and we look forward to reporting on developments in this market. Outlook The seasonal nature of the Group's business remains unchanged with revenue and operating profit weighted to the second half of the year. Full year trading remains in line with expectations and the Group continues to enjoy a strong pipeline of new business opportunities." For further information, please contact: Creston plc 020 7930 9757 Don Elgie, Chief Executive Barrie Brien, COO & CFO www.creston.com Hogarth Partnership Limited 020 7357 9477 Chris Matthews / Sarah Macleod / Sarah Richardson This information is provided by RNS The company news service from the London Stock Exchange
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