Interim Management Statement

RNS Number : 8643I

Creston PLC

31 July 2012

 



31 July 2012

Creston plc

Interim Management Statement

Creston plc ('Creston' or the 'Group') (LSE: CRE), the Insight and Communications Group, announces its interim management statement for the period 1 April 2012 to date.

Trading update

For the three months to 30 June 2012 (the 'Period'), the Group reported revenue growth of just over 1 per cent compared to the same period last year. As anticipated, the decline in retained revenues reported in the final quarter of the last financial year has impacted the first three months of trading in the current financial year, and as a consequence, like-for-like¹ revenue for the first quarter was down just under 7 per cent, compared to the same period in 2011.

Communications

The Group's largest division, Communications, has performed broadly in line with the prior year in terms of first quarter revenue. TMW, the Nelson Bostock Group and The Real Adventure have all delivered growth in revenue with some significant new business wins. This new business includes: TMW being appointed to work on Sony Mobile's global social media strategy and winning projects from new clients such as BBC Good Food; the Nelson Bostock Group being hired by Cartoon Network; and The Real Adventure winning its first global account for Danone Baby Nutrition, helping the team to develop pioneering CRM strategies across Europe and beyond. EMO experienced a decline in first quarter revenue compared to the same prior year period due to the decline in retained revenues reported at the end of the last financial year, however, it too is experiencing an uplift in new business opportunities. The division overall, with its good new business performance and pipeline, and a full year effect of last year's cost reductions, is positioned for another year of growth.

Health

The stabilisation of the healthcare sector has continued and the division saw a small increase in like-for-like revenue during the first three months compared to the prior year period. The division is experiencing an increase in new business opportunities, winning more work from new and existing clients and while structural reform remains ongoing in the sector, the Group believes it is well placed to benefit from the resulting opportunities.

Insight

As previously reported ICM's performance in the last financial year has, as expected, continued to impact trading during the Period. Significant cost reduction actions were undertaken at the end of the last financial year and management will continue to review the business closely to ensure costs remain aligned to performance as revenue increases again. The wider division's focus on developing further expertise in new research technologies and digital platforms is creating good new business opportunities, and our healthcare focussed start-up company has added three new clients since the start of the new financial year.

Outlook

While on a like-for-like basis the Group has had a slower start to the new financial year, primarily as a result of the previously reported lower retained revenues at the end of the last financial year, there have been encouraging new business wins and opportunities across the Group.

The Board is pleased with the performance of its recent acquisition The Corkery Group and expects a positive impact from new client wins. However, we naturally remain cautious given the macro environment.

For further information please contact:

Creston plc	+ 44 (0)20 7930 9757
Don Elgie, Group Chief Executive
Barrie Brien, COO/CFO
M:Communications	[phone]
Elly Williamson

About Creston plc

Creston plc (LSE: CRE) is a marketing services company focused on insight-led communications. The Group delivers a range of marketing services, including advertising, brand consultancy, CRM, digital and direct marketing, health communications, local marketing, market research, PR and social media marketing to a broad spectrum of blue-chip global clients. Our insight companies give us a real edge, providing the analytic intelligence to enable us to truly understand, influence and inspire consumers and it's that insight-led intelligence that drives our creativity. www.creston.com

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1 Excluding the results from any acquisitions made during the current year, like-for-like compares current year performance to the prior year, adjusting the current year to only include the results of prior year acquisitions for the commensurate period of ownership

 

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