Information  X 
Enter a valid email address

Taylor Nelson Sofres (TNS)

  Print      Mail a friend       Annual reports

Monday 10 March, 2003

Taylor Nelson Sofres

Preliminary Results

Taylor Nelson Sofres PLC
10 March 2003

For release at 07.00                                               10 March 2003

                        TNS moves ahead to No 3 in world

Highlights for the year ended 31 December 2002


Business performance                                               2002             2001             Change

Turnover including joint ventures                               £618.9m          £582.7m              6.2%

Operating profit*                                                £59.8m           £55.2m              8.3%

Operating margin*                                                  9.7%             9.5%

Profit before tax*                                               £48.8m           £43.5m             12.2%

Adjusted earnings per share*                                       8.6p             8.0p              7.5%

Total dividend per share                                           2.6p             2.4p              8.3%

* including joint ventures and before goodwill charges


Statutory results                                                  2002             2001            Change

Turnover excluding joint ventures                               £603.2m          £575.1m              4.9%

Operating profit before joint ventures and
associates                                                       £38.3m           £40.5m             (5.4)%

Profit before tax                                                £28.6m           £29.6m             (3.4)%

Basic earnings per share                                           3.3p             4.3p            (23.3)%



Chief Executive, Mike Kirkham, said:

"In a year when our clients' marketing budgets were under severe pressure, TNS
increased both profit before goodwill and turnover, to become the world's third
largest market information company in terms of revenue.  I believe this is a
creditable performance and indicates that our strategy will deliver longer-term
returns for our shareholders.



"TNS will maintain its focus on initiatives that allow the group to derive the
maximum benefit from its global network, sector spread and mix of continuous/
syndicated and customised activities, which we believe to be unique within our
industry.  We will continue to invest in developments that position the group at
the forefront of the industry and that should drive organic growth.



"We are targeting an operating margin in excess of 10 per cent in 2003, as we
benefit from the actions taken in 2002, together with an ongoing focus on cost
control and progress in business mix.  With the current political and economic
uncertainty, it is difficult to predict the group's outlook for the year as a
whole.  January saw a steady start to the year, with total committed orders
ahead of 2002."

On 10 March, all enquiries to +44 (0)20 7638 9571

Thereafter:

Mike Kirkham, Chief Executive                            +44 (0)20 8967 4022
David Lowden, Finance Director                           +44 (0)20 8967 4009
Janis Parks, Head of Investor Relations                  +44 (0)20 8967 1584
Margaret George, Citigate Dewe Rogerson                  +44 (0)20 7638 9571

Email to: Janis.Parks@tnsofres.com


A webcast of the results presentation made to analysts will be available on the
Investor Centre of the group's website, at www.tns-global.com, from 14.00 on
Monday 10 March 2003.



Note to editors

About TNS

TNS is one of the world's leading market information groups, providing market
measurement, analysis and insight in more than 110 countries.  Working with
national and multi-national organisations, we help our clients to develop
effective business strategies and enhance relationships with their customers.
Further information on TNS can be found on www.tns-global.com

Pictures of management are available for the media to access and download from
VisualMedia Online at www.vismedia.co.uk



PRELIMINARY RESULTS


Taylor Nelson Sofres plc (TNS), a world leader in market information, today
announces its preliminary results for the year ended 31 December 2002.
Commentary is given on results before goodwill charges, as this is the primary
basis on which the business is managed.  Commentary is also given on statutory
numbers.



Turnover

During 2002, the group's reported turnover including joint ventures increased by
6.2 per cent to £618.9 million (2001 £582.7 million).  This includes
acquisitions made during the year to strengthen the group's position in the US
market and Media Intelligence sector and reinforce its online research
capabilities, as well as to extend its operations into Sweden and Greece.
Underlying growth, excluding the effect of currency, acquisitions and operations
discontinued during the year, was 0.5 per cent.  Turnover excluding joint 
ventures was £603.2 million (2001 £575.1 million).



Operating profit and margin

Operating profit including joint ventures and before goodwill charges was up 8.3
per cent to £59.8 million (2001 £55.2 million).  During the year, the group
continued to focus on cost control and reviewed the viability of both lower-
margin contracts and lower-performing businesses.  The latter led to the closure
of certain operations, the cost of which held back the degree of margin growth
for the year.  However the other actions taken, together with progressing the
business mix to 50 per cent syndicated/continuous and 50 per cent ad hoc
customised, contributed to an improvement in operating margin before goodwill
charges to 9.7 per cent (2001 9.5 per cent).  Group operating
profit before joint ventures and after goodwill charges fell by 5.4 per cent to
£38.3 million (2001 £40.5 million).



Profit before tax

Profit before tax and goodwill charges grew by 12.2 per cent to £48.8 million
(2001 £43.5 million).  Goodwill charges of £20.2 million (2001 £13.9 million)
comprise amortisation of £13.9 million (2001 £9.0 million) and impairments of
£6.3 million (2001 £4.9 million).  Given the ongoing uncertainty over the
section of the US telecoms market in which Indetec operates, the goodwill
carrying value of £4.3m has been written off. The balance of the impairment
relates to Tellex, reflecting the current difficult trading environment for
media intelligence companies in the UK. Profit before tax and after goodwill
charges decreased by 3.4 per cent to £28.6 million (£29.6 million).

Earnings and dividend per share

Adjusted earnings per share before goodwill charges were 8.6p, an increase of
7.5 per cent (2001 8.0p).  Basic earnings per share fell by 23.3 per cent to
3.3p (2001 4.3p).  The board is recommending a final dividend of 1.7p per share
(2001 1.6p), giving an 8.3 per cent increase in the total dividend for the year
of 2.6p (2001 2.4p).




Interest

The net interest charge was £10.5 million (2001 £10.8 million), reflecting
improved treasury management during the course of the year, together with lower
interest rate levels.  Interest cover against EBITDA was 7.6x (2001 6.9x).  The
additional finance charge of £0.7 million (2001 £0.9 million) represents the
amortisation of bank facility arrangement fees of £0.3 million (2001 £0.3
million), together with notional interest relating to deferred consideration on
acquisitions of £0.4 million (2001 £0.6 million).   Notional interest is not a
cash item but is recognised in accordance with FRS7.



Effective tax rate

The group's effective tax rate before goodwill charges was 31.5 per cent (2001
30.5 per cent), with the rise primarily due to the greater level of profits
generated from higher tax countries.







Commenting on the year's results and future strategy, Chief Executive Mike
Kirkham said:

"In a year when our clients' marketing budgets were under severe pressure, TNS
increased both profit before goodwill and turnover, to become the world's third
largest market information company in terms of revenue.  I believe this is a
creditable performance and indicates that our strategy will deliver longer-term
returns for our shareholders.  In order to be in a position to deliver those
returns when the markets in which we operate recover, we continued to invest in
developments aligned with our strategic aims, while taking a rigorous approach
to costs during the year.



Our markets

"When examining the operating environment for the year, it is helpful to split
the market into its constituent parts.  Syndicated business, such as consumer
panels and television audience measurement services, together with continuous
tracking contracts, maintained their growth.

Media Intelligence, however, was affected by the poor advertising and public
relations environment and, although our business was flat, we believe that the
market for these services probably declined.  On the customised ad hoc side,
there were regional variations but the market became weaker as the year
progressed and will not recover substantially until we see some economic
recovery.



Growing fast in Asia Pacific

"The Asia Pacific region still accounts for a relatively small percentage of our
turnover but the performance in 2002 illustrates our ability to push ahead in
areas with the greatest growth potential.  Over the past few years, we have been
investing steadily in consumer panels in Asia and now offer pan-regional data.
There is further potential to build up this business through the introduction of
new products and services, many of which will be modelled on those already used
by our European panels.


"We operate in 13 countries in the region but our largest business is now in
China, where the group has established a strong and profitable position.  The
television audience measurement service, operated by our joint venture, monitors
the viewing habits of more people than any other service in the world.  During
2002, we increased to 16 the number of cities in which we run metered panels and
we have 85 diary panels.  At the same time, our Media Intelligence and Consumer
Panel activities grew significantly, benefiting from the transfer of technology
and products from other parts of the group.  We are also introducing the TNS
Sport monitoring service into China, ahead of the Beijing Olympics.  Our
concentration on one of the world's fastest-growing economies is a further
example of how we are investing in the future of the group.



Focus on key account management

"An important development in the industry is the increased emphasis on key
account management.  This has enabled us to develop significant business with
clients such as Motorola, McDonald's, AstraZeneca and Novartis.  In each case,
the depth of our global coverage, sector expertise and range of services have
been important factors.  The success of this approach is exemplified by our
appointment as IBM's primary corporate research provider.  Under this agreement,
IBM will outsource its corporate headquarters market information needs to TNS.
This includes customer commitment and global brand research covering over 85
countries and will use TNS branded solutions.



Responding to demand for increased analysis and understanding

"A further change in the market information industry, which benefits TNS, is the
growing demand from clients for increasingly sophisticated analysis and
solutions-based services.  A recent contract win illustrates how we are able to
meet this demand.  In early 2003, in France, we developed an innovative system
for advising clients on the optimum media selection for all their consumer
communications.  This approach combines expertise from various parts of our
business and was instrumental in securing a major contract from Renault Nissan.




"This demand for analytical solutions also applies to television audience
measurement (TAM), leading to the success of InfoSysTV, the group's integrated
analysis system, which is now in use in 12 countries.  Following its recent
introduction into the UK, virtually all broadcasters, including the BBC, are now
using the system as their primary analysis tool.  We continue to invest in
InfoSysTV and new modules will be introduced during 2003.



"One planned adaptation is to enable the system to analyse data from the
Portable People Meter (PPM), the new approach to audience measurement that we
are marketing in conjunction with its developer, Arbitron.  TNS recently won a
contract with two Belgian broadcasting companies to research both the listening
and viewing habits of the Flemish community.  This is the first commercial
implementation of a PPM panel in the world, although we have been successfully
using the technology within our TAM service in Singapore for the past two years.
The ability to monitor both television and radio exposure with the same device
opens up tremendous opportunities for insight into audience behaviour.  We are
about to start an extensive test of this system in Russia, where TNS already
operates a TAM service.


Outlook

"In 2003, we expect our markets to progress along broadly similar lines to the
previous year.  Syndicated panel and continuous services should maintain steady
growth, while Media Intelligence and customised ad hoc are dependent on the
recovery in advertising/public relations and the economic environment
respectively.  Given these factors, we do not expect the overall market to
achieve growth above the low single digit level.



"TNS will maintain its focus on initiatives that allow the group to derive the
maximum benefit from its global network, sector spread and mix of continuous/
syndicated and customised activities, which we believe to be unique within our
industry.  We will continue to invest in developments that position the group at
the forefront of the industry and that should drive organic growth.



"We are targeting an operating margin in excess of 10 per cent in 2003, as we
benefit from the actions taken in 2002, together with an ongoing focus on cost
control and progress in business mix.  With the current political and economic
uncertainty, it is difficult to predict the group's outlook for the year as a
whole.  January saw a steady start to the year, with total committed orders
ahead of 2002."





                         REVIEW OF OPERATING ACTIVITIES



TURNOVER

Reported turnover, including joint ventures, increased by 6.2 per cent to £618.9
million in 2002.  Operating in a difficult worldwide market environment, the
group achieved underlying improvement of 0.5 per cent.  Acquisitions contributed
6.9 per cent of growth. Two items held back turnover: foreign currency
translation, 0.8 per cent and discontinued operations 0.3 per cent.  The
following is a report on the regional and sector turnover performance.



REGIONAL PERFORMANCE


                                          Year to 31 December                        Change
                                             2002             2001           Reported        Underlying
                                               £m               £m                  %                 %
UK                                          125.4            132.5               (5.3)             (6.2)
France                                      109.3            107.5                1.6               0.7
Rest of Europe                              178.9            167.1                7.1               2.1
Total Europe                                413.6            407.1                1.6              (0.9)
Americas                                    150.4            130.7               15.1              (1.2)
Asia Pacific                                 54.9             44.9               22.2              17.6
Total                                       618.9            582.7                6.2               0.5



UK

Turnover in the UK declined by 6.2 per cent on an underlying basis.  The
majority of this fall can be attributed to the termination of the BARB TV
audience measurement contract at the end of 2001.

The remainder occurred within the customised business, which was noticeably
softer towards the end of the year.  Despite difficult market conditions, the
healthcare business in the UK continued to build on the success of 2001.



Within UK continuous and syndicated research, the consumer panel business had a
good year.  The household panel recorded some significant client wins and the
success of the strategy of introducing new individuals panels was illustrated by
good revenue growth.  In the media sector, the acquisition of the broadcast
division of BMC News was completed in April.  This business has been integrated
into TNS Media Intelligence and the anticipated cost synergies are being
achieved.



France

Underlying growth of 0.7 per cent was recorded in France with a good performance
in Consumer Panels, IT/Telecoms and Automotive.  Towards the end of the year,
the group won some significant contracts, particularly for multi-country
business.  However, growth levels were impacted by the termination of the
NetValue internet panel contract at the end of 2001, which represented over four
per cent of the country's turnover.




Rest of Europe

This region continued its record of steady progress.  Growth in Germany was
again ahead of the market, fuelled by an increase in tracking contracts in
Healthcare and Business Services.  There was evidence, however, of a slowdown in
the German market during the second half.  TNS' market-leading position across
the Nordic countries was reinforced by the acquisition made in Sweden in July.
The Russian business, acquired in 2001, has developed well, as local management
takes full advantage of the benefits associated with being part of an
international group.  Markets in Southern Europe were generally slow during 2002
but the group performed well, particularly in Consumer Panels and Healthcare.
In May, TNS entered the Greek market through a joint venture.



Americas

The group's position in the US was strengthened as strategically important
acquisitions were made to reinforce both syndicated and customised activities.
On an underlying basis, the US customised business grew by around four per cent,
once again out-performing the market.  This excellent performance was driven
primarily by significant contract wins in the IT sector and the success of
branded solutions.  The integration of Greenfield Online has significantly
improved the group's capabilities in internet data collection, which is becoming
increasingly important in the US market.  The acquisition in April of Elrick &
Lavidge provided improved coverage of the important FMCG sector and the business
has performed ahead of the group's expectations.



The weak US advertising market had an adverse impact on the group's US media
intelligence business.  This was compounded by the loss of some clients through
company failure and mergers.  As a result, TNS CMR reported a slight underlying
decline for the year.  2002 was, however, an important year in terms of new
product development and the strengthening of internet advertising tracking,
through the acquisition of Evaliant.  As the leading provider of strategic
advertising and marketing communications information to advertising agencies,
advertisers, broadcasters and publishers in the US, TNS CMR has a strong market
position and should perform better as the advertising market begins to recover.



In Latin America, Consumer Panels grew in local currency. The custom businesses
in Mexico and Argentina continued to be affected by the difficult economic
environment but saw some improvement in the second half.



Asia Pacific

From its well-established position across Asia Pacific, the group again
performed well, achieving underlying growth of 17.6 per cent.  The joint venture
operations in China continued to flourish, with good growth in custom, Media
Intelligence and TV audience measurement, as well as Consumer Panels.  Consumer
Panels generally in Asia again achieved strong results and pan-regional coverage
was extended as the new panel in Vietnam came on line.  On a country basis,
Korea, Taiwan and Thailand performed particularly well.


SECTOR PERFORMANCE


                                              Year to 31 December                        Change
                                             2002             2001          Reported         Underlying
                                               £m               £m                 %                  %
Consumer                                    187.8            182.6               2.8               (0.8)
Media                                       160.9            152.3               5.6               (3.0)
Business services                            92.1             85.7               7.4                1.2
IT/Telecoms                                  69.8             59.8              16.8                8.2
Healthcare                                   47.3             42.8              10.4                9.1
Other activities                             61.0             59.5               2.7               (1.3)
Total                                       618.9            582.7               6.2                0.5



Consumer

Underlying performance was impacted by the loss of the NetValue contract, which
represented about 2.5 per cent of the sector as a whole.  In Europe, steady
growth was achieved in Consumer Panels, with the addition of a number of new
added-value products for existing panels and new services, such as mobile phone,
entertainment and baby panels. The household panel in France benefited from an
extension to its portfolio of services, while the focus on a global approach to
data delivery continues to be an important development.  There are on-going
plans for the introduction of more new products and the further development of
the sector's successful key account management strategy.  With an increasing
demand in Asia and Latin America for information about consumer behaviour,
panels in these regions continue to grow.  Coverage in both areas was extended
during 2002, with a focus on the provision of pan-regional information and
analysis.  The group anticipates maintaining steady progress in this area of
activity.



Overall, the consumer customised business performed better in the second half,
with the exception of the UK, where clients deferred a number of projects into
2003.  The strongest growth was in Asia Pacific and Latin America, mirroring the
demand for information experienced by the Consumer Panel operations.



Demand for Consumer Panels is expected to grow but the performance of the
customised business will be more dependent on the economic climate.



Media

The underlying sector decline of 3.0 per cent is due to the termination of the
BARB contract at the end of 2001.  Without this impact, the sector would have
seen growth of 1.4 per cent.  Media Intelligence services in general were
affected by the continued weakness in advertising and public relations.  Some
growth was achieved in Europe and Asia, principally driven by good performances
in Russia and China but this was held back by the decline in TNS CMR in the US.
The foundations of this predominantly syndicated business, however, were
reinforced during the year, both by acquisition and the introduction of new
services.



The online advertising tracking division in the US was strengthened by the
acquisition of Evaliant and now monitors advertising on over 2,000 internet
sites. The further development of online services for the immediate delivery to
clients of advertising expenditure and creative data has led to new business
wins.  In the UK, France and Spain, new web-based product offerings proved
successful and are expected to provide growth going forward.  News monitoring is
also a focus in these markets, with the introduction of new analysis products.
Recovery in the advertising and public relations markets will be the trigger for
an upturn in this sector's turnover performance.



The performance of the television audience measurement sector was also supported
by strong growth in Russia and China.  The group's technology was used in
retaining the Belgian contract and its diary service in Estonia was switched to
Peoplemeters.  These meters were also installed under a licence arrangement in
the Dominican Republic and were introduced into a national service in Serbia.
Early this year, the group won a five-year contract for radio and TV measurement
in the Flemish-speaking areas of Belgium, in association with Arbitron, and its
TAM contract in Israel was extended for a further four years.



Business services

The US and Germany continued to perform well in this sector.  Significant
reductions in research spend by the large professional services firms resulted
in a disappointing outturn in the UK, while France saw a downturn in its
corporate communication and image work.  In the current economic climate, this
sector will continue to be challenging in 2003.



IT/Telecoms

The group's ability to provide analysis of multi-national data and key account
management in the IT sector have been the main drivers of the outstanding
performance in this sector.  TNS' recent appointment as the primary corporate
research provider for IBM is a clear illustration of the success of this
approach.  The group is also benefiting from its ability to provide interactive
solutions and the use of branded solutions in brand and advertising tracking and
customer satisfaction studies.



Key account management has also proven successful in the Telecoms sector, with
major international accounts being co-ordinated on a regional basis and a strong
emphasis on transferring skills from one part of the network to another.  The
launch of two new syndicated services in Europe offers potential for the future.
In the US however, the severe downturn in the telecoms market, combined with
financial problems at two of its major clients, led to a further decrease in
Indetec turnover.  This business has now been brought under the management of
TNS Intersearch, offering US clients a combined syndicated and custom TNS
Telecoms service.



While the IT and Telecoms industries are still under pressure, the ongoing
demand for information on consumer demand and behaviour is expected to continue.



Healthcare

TNS Healthcare has a very strong reputation in the market and continued to build
on its excellent performance in 2001, improving by 9.1 per cent on an underlying
basis.  International business continued to grow, as the group won further new
product development contracts.  In the UK, the Omnimed survey among GPs has
grown well, particularly benefiting from its internet data collection.  The
focus on development of new syndicated services has continued, particularly in
the sales research area.  The group is leveraging its healthcare expertise
across the network, by introducing specialists into Asia and European countries
where it has not had a local healthcare presence previously.



The US and French domestic business disappointed in the second half, as some
sizeable studies conducted during that period in 2001 were not repeated and,
with fewer new drug approvals in the US, the market appeared to slow.  However,
with its strong market position, the group expects to see growth in this sector
during 2003.





                                FINANCIAL REVIEW



Operating profit and margin

Operating profit including joint ventures and before goodwill charges increased
by 8.3 per cent to £59.8 million (2001 £55.2 million).  Operating margin before
goodwill charges improved from 9.5 per cent to 9.7 per cent, partly due to the
improved mix of continuous/syndicated services to customised ad hoc, now 50:50
(2001 49:51).  A review of the Indetec business in the US and Tellex in the UK
resulted in impairments of £6.3 million to the carrying value of goodwill. Total
goodwill charges for 2002 were £20.2 million (2001 £13.9 million), including the
impairment of £6.3 million (2001 £4.9 million).  Operating margin after goodwill
charges was 6.4 per cent (2001 7.1 per cent) and operating profit including
joint ventures was down by 4.1 per cent to £39.6 million (2001 £41.3 million).



Associates

Income from associates rose to £0.2 million (2001 £nil), due to improved
performance in those companies.  There has been no change in associate holdings.



Minority interests

Minority interests increased to £0.7 million (2001 £0.4 million) due to the
improved profit performance in a number of subsidiaries, in particular the
Russian media businesses.  In addition, the 2002 results include a full year of
the MDC group, which was acquired in March 2001.



Capital expenditure

Total capital expenditure for 2002 amounted to £16.2 million (2001 £20.0
million).  The main category of asset expenditure was computer hardware and
software, which includes work undertaken on web portals and the acquisition of
palm pilot kits for use in consumer panels.  Capital investment into the
business continued at a similar rate to 2001, excluding the expenditure on major
property improvements undertaken that year.



Cash flow and net debt

Net cash inflow from operating activities was £67.0 million (2001 £72.7
million).  The movement in working capital is primarily due to an increase of
5.9 per cent in trade debtors, to £134.6 million (2001 £127.1 million), slightly
below the rate of turnover growth.  Net cash outflow from acquisitions and
disposals was £19.4 million (2001 £85.2 million) and closing net debt reduced to
£204.8 million (2001 £209.2 million).



Acquisitions

During 2002, the group's purchase of Svenska Gallup in Sweden completed its
positioning as the leading market information company in the Nordic region.  Its
European operations were also reinforced by the establishment of a joint
venture, TNS ICAP, in Greece.  In the US, the acquisitions of Elrick & Lavidge
and Greenfield Online strengthened the group's presence in the consumer sector
and online research respectively.  The purchase of Evaliant in the US and the
broadcast division of BMC News in the UK added to the group's Media Intelligence
offering in those countries.





ENDS



The results of the group are shown on the following pages.


GROUP PROFIT AND LOSS ACCOUNT
For the year ended 31 December

                                                                                             2002            2001
                                                                              Notes            £m              £m

Continuing activities                                                                       601.9           582.7
Acquisitions                                                                                 17.0               -

Turnover                                                                                    618.9           582.7
Less share of joint ventures                                                                (15.7)           (7.6)

Turnover excluding joint ventures                                                 2         603.2           575.1

Cost of sales                                                                              (212.3)         (206.0)

Gross profit                                                                                390.9           369.1
Administrative expenses                                                                    (352.6)         (328.6)

Operating profit
Continuing activities (after goodwill charges of £18.6m, 2001 £13.7m)                        38.7            40.5
Acquisitions (after goodwill charges of £1.0 m, 2001 £nil)                                   (0.4)              -

Operating profit before joint ventures and associates                             2          38.3            40.5
Share of operating profit of joint ventures (after goodwill charges of                        1.3             0.8
£0.6m, 2001 £0.2m)

Operating profit including joint ventures before goodwill charges                 2          59.8            55.2
Goodwill charges                                                                            (20.2)          (13.9)

Operating profit including joint ventures                                                    39.6            41.3
Share of operating profit of associates                                                       0.2               -

Profit on ordinary activities before interest and taxation                                   39.8            41.3
Interest receivable and similar income                                                        0.8             0.6
Interest payable                                                                            (11.3)          (11.4)
Other finance charges                                                                        (0.7)           (0.9)

Profit on ordinary activities before taxation                                                28.6            29.6
Taxation on profit on ordinary activities                                                   (15.5)          (13.3)

Profit on ordinary activities after taxation                                                 13.1            16.3
Minority interests                                                                           (0.7)           (0.4)

Profit for the year                                                                          12.4            15.9
Dividends                                                                                   (10.0)           (9.0)

Retained profit for the year                                                                  2.4             6.9

Adjusted earnings per share before goodwill charges                               3           8.6p            8.0p
Basic earnings per share                                                          3           3.3p            4.3p
Diluted earnings per share                                                        3           3.2p            4.1p

Dividend  per share                                                                           2.6p            2.4p



There is no difference between the profit on ordinary activities before taxation
and the retained profit for the year stated above, and their historical cost
equivalents.


GROUP BALANCE SHEET

At 31 December

                                                                                              2002          2001
                                                                                                £m            £m
Fixed assets
Intangible assets                                                                            178.6         202.0
Tangible assets                                                                               56.1          58.3
Investments
Share of gross assets of joint ventures                                                       22.3          19.2
Share of gross liabilities of joint ventures                                                  (3.7)         (2.1)

                                                                                              18.6          17.1
Associates                                                                                     0.9           0.7
Other investments                                                                              8.3           7.9

                                                                                              27.8          25.7

                                                                                             262.5         286.0

Current assets
Stock                                                                                         28.8          34.0
Debtors                                                                                      159.3         144.4
Cash at bank and in hand                                                                      35.6          24.1

                                                                                             223.7         202.5

Creditors:  amounts falling due within one year                                             (219.2)       (192.6)

Net current assets                                                                             4.5           9.9

Total assets less current liabilities                                                        267.0         295.9
Creditors:  amounts falling due after more than one year                                    (202.5)       (220.6)
Provisions for liabilities and charges                                                       (23.6)        (32.3)

Net assets                                                                                    40.9          43.0

Capital and reserves
Called up share capital                                                                       19.6          19.5
Share premium                                                                                105.3         102.7
Other reserves                                                                                 1.2           0.9
Profit and loss account                                                                      (90.5)        (85.2)

Equity shareholders' funds                                                                    35.6          37.9
Minority interests                                                                             5.3           5.1

                                                                                              40.9          43.0


GROUP CASH FLOW STATEMENT
For the year ended 31 December

                                                                                              2002          2001
                                                                                 Note           £m            £m

Cash flow from operating activities
Net cash inflow from continuing operating activities                                4         67.0          72.7

Dividends from associated undertakings                                                         0.1           0.1
Returns on investments and servicing of finance
Interest received                                                                              0.9           0.5
Interest paid                                                                                (10.7)        (12.0)
Dividends paid to minority interests                                                          (0.4)            -

Net cash outflow from returns on investments and servicing of finance                        (10.2)        (11.5)

Taxation
Taxation paid                                                                                (15.3)        (11.6)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                                            (16.2)        (19.8)
Purchase of intangible fixed assets                                                              -          (0.2)
Purchase of investments                                                                       (0.1)         (0.1)
Purchase of own shares                                                                        (2.2)            -
Sale of tangible fixed assets                                                                  1.0           1.0

Net cash outflow from capital expenditure and financial investment                           (17.5)        (19.1)

Acquisitions and disposals
Purchase of subsidiary undertakings                                                 4         (5.9)        (73.7)
Purchase of businesses                                                              4        (13.6)            -
Net cash acquired with subsidiary undertakings and businesses                       4          0.2           0.6
Purchase of joint ventures and associates                                                     (0.2)        (12.1)
Sale of joint ventures                                                                         0.1             -

Net cash outflow from acquisitions and disposals                                             (19.4)        (85.2)

Dividends paid                                                                                (9.5)         (8.5)

Cash outflow before financing                                                                 (4.8)        (63.1)
Financing
Proceeds on exercise of share options                                                          3.8           4.8
Increase in debt                                                                              12.5          63.1

Increase in cash in the year                                                        4         11.5           4.8




STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 31 December

                                                                                             2002           2001

                                                                                               £m             £m
Profit for the year                                                                          12.4           15.9
Amounts arising on the exercise of share options                                              0.3            0.5
Translation differences on foreign currency net investments less translation                 (7.3)          (2.5)
differences on foreign currency loans taken out to fund those investments
Tax on gains/(losses) on foreign currency borrowings hedging foreign investments              0.7           (0.5)

Total recognised gains and losses relating to the year                                        6.1           13.4

RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS

For the year ended 31 December

                                                                                             2002           2001
                                                                                               £m             £m
Profit for the year                                                                          12.4           15.9
Dividends                                                                                   (10.0)          (9.0)

                                                                                              2.4            6.9

Amounts deducted in respect of shares issued to a qualifying employee share                  (1.1)          (1.0)
ownership trust
Amounts arising on the exercise of share options                                              0.3            0.5
Share of former associates                                                                      -           (0.4)
Translation differences on foreign currency net investments less translation                 (6.6)          (3.0)
differences on foreign currency loans taken out to fund those investments (net of
taxation)
New share capital issued (including share premium)                                            2.7            1.7

Net (reduction)/addition to equity shareholders' funds                                       (2.3)           4.7
Opening equity shareholders' funds                                                           37.9           33.2

Closing equity shareholders' funds                                                           35.6           37.9




NOTES TO THE PRELIMINARY STATEMENT

1.                   Basis of accounting

The financial statements have been prepared under the historic cost convention
in accordance with applicable UK Accounting Standards.



2.                   Geographical analysis

In the opinion of the directors, the group has only one class of business, which
is the provision of market information services.


                                                                                2002              2001
                              Continuing          Acquisitions                 Total             Total
Turnover                              £m                    £m                    £m                £m
Sales by origin
Europe
   - group                         409.3                   2.1                 411.4             405.2
   - joint ventures                  2.2                     -                   2.2               1.9
Americas
   - group                         133.9                  14.9                 148.8             128.7
   - joint ventures                  1.6                     -                   1.6               2.0
Asia Pacific
   - group                          43.0                     -                  43.0              41.2
   - joint ventures                 11.9                     -                  11.9               3.7

Total                              601.9                  17.0                 618.9             582.7

   - group                         586.2                  17.0                 603.2             575.1
   - joint ventures                 15.7                     -                  15.7               7.6

Sales by destination
Europe
   - group                         391.2                   2.1                 393.3             385.5
   - joint ventures                  2.2                     -                   2.2               1.9

Americas
   - group                         150.9                  14.9                 165.8             147.7
   - joint ventures                  1.6                     -                   1.6               2.0

Asia Pacific
   - group                          44.1                     -                  44.1              41.9
   - joint ventures                 11.9                     -                  11.9               3.7

Total                              601.9                  17.0                 618.9             582.7

   - group                         586.2                  17.0                 603.2             575.1
   - joint ventures                 15.7                     -                  15.7               7.6

Intra-group turnover between geographic segments is not considered material.


NOTES TO THE PRELIMINARY STATEMENT

2.             Geographical analysis (continued)

                            Continuing           Acquisitions                   2002              2001
                                    £m                     £m               Total £m             Total
                                                                                                    £m
Operating profit before
goodwill charges

Europe
   - group                        40.6                   (0.1)                  40.5              38.9
   - joint ventures                0.1                      -                    0.1               0.3

Americas
   - group                        15.7                    0.7                   16.4              14.4
   - joint ventures                  -                      -                      -               0.1

Asia Pacific
   - group                         1.0                      -                    1.0               0.9
   - joint ventures                1.8                      -                    1.8               0.6

Total                             59.2                    0.6                   59.8              55.2

   - group                        57.3                    0.6                   57.9              54.2
   - joint ventures                1.9                      -                    1.9               1.0

Profit on ordinary
activities
before taxation

Europe
   - group                        32.8                   (0.3)                  32.5              34.0
   - joint ventures                0.1                      -                    0.1               0.3

Americas
   - group                         5.1                   (0.1)                   5.0               5.8
   - joint ventures               (0.2)                     -                   (0.2)                -

Asia Pacific
   - group                         0.8                      -                    0.8               0.7
   - joint ventures                1.4                      -                    1.4               0.5

Operating profit
including joint ventures          40.0                   (0.4)                  39.6              41.3

   - group                        38.7                   (0.4)                  38.3              40.5
   - joint ventures                1.3                      -                    1.3               0.8

Income from interests in
associated undertakings                                                          0.2                 -

Interest receivable                                                              0.8               0.6

Interest payable and
other finance charges                                                          (12.0)            (12.3)

                                                                                28.6              29.6


NOTES TO THE PRELIMINARY STATEMENT

2.             Geographical analysis (continued)


                                                                                2002               2001
                                                                                  £m                 £m
Net assets

Europe
   - group                                                                     33.1               29.9
   - joint ventures                                                             0.4                0.5

Americas

   - group                                                                      2.9                9.7
   - joint ventures                                                             2.8                2.8

Asia Pacific
   - group                                                                     (0.9)              (0.5)
   - joint ventures                                                            15.4               13.8

Net operating assets                                                           53.7               56.2
   - group                                                                     35.1               39.1
   - joint ventures                                                            18.6               17.1

Unallocated amounts:
Current and deferred
taxation                                                                       (6.2)              (7.1)
Dividends payable                                                              (6.6)              (6.1)

Net assets                                                                     40.9               43.0




NOTES TO THE PRELIMINARY STATEMENT

3.                   Earnings per share

Basic earnings per share have been calculated on the profit after taxation and
minority interests of £12.4m (2001 £15.9m) and on 380,639,215 shares (2001
373,724,213), being the weighted average number of shares in issue during the
year, excluding those held in the ESOP and the EBT, which are treated as
cancelled.

The diluted earnings per share have been calculated in accordance with the
provisions of FRS 14, with the weighted average number of shares in issue being
adjusted to assume conversion of all dilutive potential shares for the period
they were outstanding.

Shares held by the ESOP and the EBT which are under performance-based options
are included in the diluted weighted average number of shares as the performance
conditions are deemed to have been met for the purposes of this calculation.
The diluted weighted average number of shares is 386,581,928 (2001 383,693,389).

Adjusted earnings per share before goodwill charges have been calculated on the
profit after taxation and minority interests of £32.6 m (2001 £29.8m), which
excludes goodwill charges of £20.2m (2001 £13.9m) and on the basic weighted
average number of shares.  The directors believe that earnings per share before
goodwill charges assists in understanding the underlying performance of the
group.

The weighted average number of ordinary shares in issue during the year for the
purpose of these calculations is as follows:
                                                                                  2002              2001
Weighted average number of shares (millions)
Share capital                                                                    390.4             388.6
Shares held by ESOP                                                               (2.6)             (3.3)
Shares held by EBT                                                                (7.2)            (11.6)

Basic earnings per share denominator                                             380.6             373.7

Dilutive effect of share options                                                   6.0              10.0

Dilutive earnings per share denominator                                          386.6             383.7




NOTES TO THE PRELIMINARY STATEMENT



4.             Consolidated statement of cash flow

Reconciliation of operating profit to net cash inflow from operating activities


                                                            2002                             2001
                                                           Total                            Total
                                                              £m                               £m
Operating profit                                            38.3                             40.5
Amortisation and impairment of                              20.0                             14.4
intangible fixed assets
Depreciation of tangible fixed                              19.3                             18.4
assets
Profit on sale of fixed assets                              (0.3)                               -
Decrease in stock - work-in-progress                         6.1                              6.7
(Increase) / decrease in debtors                           (12.5)                             6.0
(Decrease) in creditors                                     (4.4)                           (14.6)
Increase in provisions                                       0.5                              1.3

Net cash inflow from continuing
operating activities                                        67.0                             72.7




Reconciliation of net cash flow to movement in net debt


                                                                                              2002
                                                                                                £m
Increase in cash in the year                                                                  11.5
Cash inflow from increase in debt                                                            (12.5)

Change in net debt resulting from cashflows                                                   (1.0)
Translation difference                                                                         5.7
Non-cash movement                                                                             (0.3)

Movement in net debt in the year                                                               4.4
Net debt at 1 January 2002                                                                  (209.2)

Net debt at 31 December 2002                                                                (204.8)




NOTES TO THE PRELIMINARY STATEMENT

4.       Consolidated statement of cash flow (continued)

Analysis of net debt

                       At 1 Jan      Cash flow      Exchange      Acquisitions       Non-cash        At 31
                           2002                     movement                £m      movements          Dec
                                                                                           £m      2002 £m
                             £m            £m             £m
Cash at bank and           24.1          11.3              -               0.2              -         35.6
in hand
Loans repayable           (17.6)         (9.5)           2.2                 -          (15.9)       (40.8)
within 1 year
Loans repayable          (215.4)         (3.3)           3.5                 -           15.6       (199.6)
after more than 1
year
Obligations under          (0.3)          0.3              -                 -              -            -
finance leases
                         (209.2)         (1.2)           5.7               0.2           (0.3)      (204.8)


The net non-cash movement represents the amortisation of arrangement fees.

Analysis of the net cash outflow in respect of the purchase of subsidiary
undertakings and businesses


                                                                                                    2002
                                                                                                      £m
Cash consideration
Prior year acquisitions                                                                             (2.1)
2002 acquisitions                                                                                  (17.4)

                                                                                                   (19.5)
Net cash acquired                                                                                    0.2

Net cash outflow in respect of the purchase of subsidiary
undertakings and businesses                                                                        (19.3)




NOTES TO THE PRELIMINARY STATEMENT

5.             Financial information

The preliminary results were approved by the board on 10 March 2003.  The
financial information contained in this announcement does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
Statutory accounts for the year ended 31 December 2001, together with an
unqualified auditors' report thereon, have been delivered to the Registrar of
Companies.  Statutory accounts for the year ended 31 December 2002 have not yet
been delivered to the Registrar of Companies.  The group's annual report and
accounts for 2002 will be delivered to shareholders in early April and will be
filed with the Registrar of Companies, together with an unqualified auditors'
report thereon, following the annual general meeting.  It will be available
electronically from the Investor Centre of the group's website at
www.tns-global.com in early April.

Additional information

Subject to approval by shareholders at the annual general meeting on Wednesday
14 May 2003, the final dividend will be paid on 7 July 2003 to shareholders on
the register on 23 May 2003.

Copies of this release are available from the Head of Investor Relations, Taylor
Nelson Sofres plc, Westgate, London W5 1UA.  Email:  Janis.Parks@tnsofres.com.
It can also be found in the Investor Centre of the group's website at
www.tns-global.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange