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Taylor Nelson Sofres (TNS)

  Print      Mail a friend       Annual reports

Monday 06 September, 2004

Taylor Nelson Sofres

Interim Results

Taylor Nelson Sofres PLC
06 September 2004




                                                                6 September 2004
Press information for release at 07.00



                             On track for full year



    Taylor Nelson Sofres plc (unaudited)

    Highlights for the six months ended 30 June 2004


Business performance                                                   2004           2003*        Change


Turnover including joint ventures                                   £446.0m         £305.3m         46.1%

Adjusted operating profit**                                          £40.9m          £25.8m         58.7%


Adjusted operating margin**                                            9.2%            8.4%
Adjusted profit before tax**                                         £31.8m          £20.7m         53.5%
Adjusted earnings per share**                                          4.7p            3.5p         36.2%
Total dividend per share                                               1.1p           0.95p         15.8%

Statutory results

Turnover excluding joint ventures                                   £438.2m         £297.5m         47.3%

Operating profit before joint ventures and                           £21.7m          £18.7m         15.7%
associates
Profit before tax                                                    £13.8m          £13.8m            -
Basic earnings per share                                               1.3p            1.7p        (23.5)%

*  restated as explained in Note 1 to the financial statements
** including joint ventures, before goodwill charges and integration costs



•         Underlying revenue up almost 5%; markets improve across world

•         Operating profit up 59%; encouraging margin improvement

•         Integration of NFO almost complete; full year cost synergies on target

•         Revenue synergies coming through well for world's largest custom
          research business

•         Interim dividend raised by 16%



    Chief Executive, Mike Kirkham, said:


"We expect the worldwide market for market information to grow by 3-4 per cent
in 2004.  Orders secured at the end of July were ahead of those secured at the
same date in 2003 and represented over 80 per cent of our internal forecast for
the year.  Following a robust first half performance, the group is on track to
achieve underlying turnover growth in line with the market for the year as a
whole.


"Looking further ahead, we believe that market developments will increasingly
favour the major players such as TNS.  Our focus is on ensuring that we take
full advantage of our global network to gain the maximum benefits offered by
these developments.  As we increasingly derive the revenue synergies available
to the enlarged group and see ongoing steady improvement in our syndicated
services, we should achieve turnover growth ahead of the market and further
margin improvement."



On 6 September, all enquiries to +44 (0)20 7638 9571



Thereafter:




Mike Kirkham, Chief Executive                  +44 (0)20 8967 4022

Andy Boland, Finance Director                  +44 (0)20 8967 1472

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@tns-global.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 16.00 on
Monday 6 September 2004.



Note to editors

About TNS

TNS is one of the world's leading market information groups.  We provide market
measurement, analysis and insight through our global network of operating
companies in 70 countries.  Working with national and multi-national
organisations, we help our clients to develop effective business strategies and
enhance relationships with their customers.  In July 2003, the group completed
the acquisition of NFO WorldGroup, Inc.  Further information on TNS can be found
on www.tns-global.com.



High resolution images are available for the media to view and download (free of
charge) from www.vismedia.co.uk.



Interim results

Taylor Nelson Sofres plc (TNS), a world leader in market information, today
announces its interim results for the six months ended 30 June 2004.



Turnover

Following the acquisition of NFO Worldgroup, Inc. (NFO) in July 2003, reported
turnover including joint ventures increased by 46.1 per cent to £446.0 million
(2003 £305.3 million).  The group increased underlying turnover at constant
currency rates by 4.8 per cent in the first half.  Due to the strength of
sterling, principally against the US dollar and the euro, currency had a
negative impact of 5.2 per cent on reported turnover.  Turnover excluding joint
ventures was £438.2 million (2003 £297.5 million).



Operating profit and margin

Operating profit, including joint ventures and operating synergies, before
goodwill charges and integration costs, grew by 58.7 per cent to £40.9 million
(2003 £25.8 million).  Operating margin, before goodwill charges and integration
costs, was 9.2 per cent compared with 8.4 per cent in the corresponding period
of 2003.



Integration costs

Integration costs incurred in the first half were £5.7 million.  As previously
announced, this includes the £2.2 million charge related to the retirement of
Bill Lipner from the board at this year's AGM.



Interest

The net interest charge, excluding other finance charges, rose to £8.6 million
(2003 £4.9 million), reflecting the additional borrowings related to the
acquisition of NFO.  Interest cover against EBITDA, excluding other finance
charges, was 6.5x.  Other finance charges were £1.1 million (2003 £1.0 million).



Profit before tax

Profit before tax including operating synergies, before goodwill charges and
integration costs, grew by 53.5 per cent to £31.8 million (2003 £20.7 million)
and, after these charges, profit before tax was £13.8 million (2003 £13.8
million).



Effective tax rate

The tax charge for the period was £7.0 million (2003 £6.2 million), representing
a reported tax rate before goodwill charges of 26.8 per cent.  Excluding the tax
effect of integration costs, the tax charge was £10.3 million, equivalent to an
underlying tax rate of 32.4 per cent (2003 31.5 per cent).



Minority interests

Minority interests increased to £1.1 million (2003 £0.9 million), due
principally to the inclusion of minorities acquired with NFO.



Earnings and dividend per share

Based on a weighted average of 436.4 million shares, adjusted earnings per share
before goodwill charges and integration costs were 4.7p (2003 3.5p), an
improvement of 36.2 per cent.  Basic earnings per share were 1.3p (2003 1.7p).


The board has declared an interim dividend of 1.1p per share (2003 0.95p), up
15.8 per cent.


Net debt and cash flow

Net debt at 30 June 2004 was £370.7 million compared with £367.7 million at 31
December 2003.  The group's operating cash flow was £27.3 million (2003 £25.1
million).  There was a negative working capital movement of £17.7 million in the
period (2003 negative £8.5 million), primarily reflecting increased levels of
work in progress from the combined group going into the third quarter.  Based on
TNS' past experience, the group expects that this seasonal trend in working
capital should reverse during the course of the second half.



Capital expenditure

Capital expenditure for the first half year was £13.0 million (2003 £6.1
million).  The main category of capital expenditure is IT.



Goodwill

Goodwill charges in the period amounted to £12.3 million (2003 £6.2 million),
reflecting the acquisition of NFO.



IFRS

Preparation for the integration of International Financial Reporting Standards
(IFRS) into the group's reported accounts is ongoing and advanced.  At this
stage, the group's assessment is that the areas of the profit and loss account
where IFRS will have the main impact are the change in treatment of goodwill and
the valuation of share options.  While the group is in the process of evaluating
the total impact of IFRS, at this stage the impact from option accounting is
expected to be around 4-5 per cent of adjusted operating profit.  The first full
financial statements to be reported solely under IFRS will be the interim
results for the six months to 30 June 2005.



Commenting on the six months' results, Mike Kirkham, Chief Executive of TNS,
said:


"Following last year's acquisition of NFO, we have increased reported revenue by
46 per cent.  During the first half, we have made substantial progress with the
integration of NFO into the group and have delivered a significant improvement
in operating margin.  At the same time, we have achieved underlying revenue
growth of almost five per cent.



Our markets

"The group saw encouraging revenue growth in all three regions, indicating that
our markets across the world are improving.  The pattern of this improvement
remains consistent with last year.  The market for syndicated and continuous
services continues to grow steadily.  On the custom side, there is more regional
variation.  Demand in the fast-developing markets of Asia Pacific remains
buoyant.  With some improvement in the economic environment in the Americas and
Europe our markets have picked up, although the pace of change varies across
markets.



Integration nearing completion

"We are nearing completion of the merger of our custom businesses.  Having
concentrated on North America and Asia Pacific in 2003, the main focus in the
first half of 2004 has been on Europe.  Of our three main European markets,
France and UK were largely completed in the period.  The process in Germany
involves extensive consultation with Works Councils but we anticipate finishing
most of the work there before the end of this year.



"At the beginning of the year we increased our expectations for operating cost
synergies to £15 million and we remain on track to deliver this figure in 2004,
rising to £20 million, on an annualised basis, in 2005.



Achieving revenue synergies

"The merger of TNS and NFO has created the largest custom research organisation
in the world and, as the year has progressed, we have increasingly seen evidence
of the advantages this brings.  Our geographic scale and extended sector
expertise is enabling us to win contracts that we would not have won previously.
In some cases these are with new clients; in others we are growing
relationships with existing clients, as they become aware of the additional
services that we can offer.  This is particularly evident in the US, where we
are successfully selling the benefits of the access panel and our online
capabilities to a wider client base.  We are also seeing tangible results from
our increased emphasis on key account management and our strengthened range of
Business Solutions.



"One of the sectors where we have reinforced our position following the merger
is Polling & Social research and we are the world's largest company in that
market.  Recently, this sector won a major contract of up to four years'
duration from the European Commission, to conduct its public opinion monitor,
Eurobarometer.  In probably the largest study of its kind in the world, TNS will
measure and analyse public opinion on social, economic and political issues
across 33 European countries.



Ongoing strength in syndicated services

"The group continues to make good progress with its syndicated services -
notably Worldpanel, Media Intelligence and TV and Radio Audience Measurement.
In France, we are extending our consumer panel from 8,000 to 12,000 households.
Although this expanded service does not come into operation until 2005, it has
already led to new client wins.  In Media Intelligence, we are benefiting from
some improvement in the market and from the additional services we have
introduced recently.



"One of the challenges in TV audience measurement is to adapt services to the
digital age.  In April of this year, BSkyB announced that it had appointed TNS
to develop and operate an innovative audience research system.  This will
involve the creation of a new audience research panel composed of 20,000
households and will use information collected from digital set-top boxes.
7,000 of those households are already part of our existing consumer purchasing
panels; this will enable us to analyse in detail the relationship between
viewing habits and purchasing behaviour.



Investing for future growth

"The service we will be providing to BSkyB is a world first.  To maintain our
position as a leader in our industry, we will continue to invest in developments
that will take the company forward.  Two of the principal areas of investment
this year relate to maximising the value of the access panel capabilities we
have brought into the group. In the US, clients value the quality of our managed
access panel and, in response to their demand, we are extending its
multi-cultural representation.  By combining this with our existing capabilities
in the Hispanic market, we believe the group will be well positioned to respond
to the opportunities presented by the increased focus on marketing to this
growing community.



"In Europe, we are moving ahead with our plans for building a high quality
access panel, combining our US expertise in this area with the European
experience we have already gained, especially in the Netherlands.  The panel
will operate from one hub in Amsterdam and is expected to be fully operational
by Spring 2005.  The software platform used will be identical for Europe and the
US; this will facilitate the development of multi-country and regional services.
The costs of developing this capability are included within the group's margin
guidance.



Outlook

"We expect the worldwide market for market information to grow by 3-4 per cent
in 2004.  Orders secured at the end of July were ahead of those secured at the
same date in 2003 and represented over 80 per cent of our internal forecast for
the year.  Following a robust first half performance, the group is on track to
achieve underlying turnover growth in line with the market for the year as a
whole.



"On a regional basis, Europe as a whole is expected to report growth broadly in
line with the market for the full year.  France is expected to show a slower
rate of improvement as a result of some revenue leakage, which was anticipated
at the time of the merger and will mostly be felt during the second half.
Growth rate in the Americas is likely to be slightly slower in the second half
than the first, which benefited from the early completion of some contracts.
Asia Pacific growth should approach the double-digit level for the full year.



"Looking at the sectors, with the ongoing strength of the consumer market we
anticipate that the good performance in this area will be maintained through the
year, while Media should see additional benefit from the improvement in the
Media Intelligence market in the second half.  Business Services is stabilising
but the timing and extent of any pick-up will depend on the general economic
climate.  We anticipate some slowdown in the rate of growth for IT/Telecoms in
the second half.  2004 is seen as a year of consolidation for Healthcare and,
while good growth was experienced in the first half, the improvement for the
year as a whole will be slower, due to a stronger second half comparative.



"Our margin expectations for 2004 remain consistent with those stated earlier in
the year.  We expect to see an improvement of 50-100 basis points over the 10
per cent margin reported for 2003.



"Looking further ahead, we believe that market developments will increasingly
favour the major players such as TNS.  Our focus is on ensuring that we take
full advantage of our global network to gain the maximum benefits offered by
these developments.  As we increasingly derive the revenue synergies available
to the enlarged group and see ongoing steady improvement in our syndicated
services, we should achieve turnover growth ahead of the market and further
margin improvement."




REVIEW OF OPERATING ACTIVITIES



TURNOVER



Calculation of underlying turnover growth

Given the size of the NFO acquisition, the group has changed the method of
calculating underlying growth to one that allows a meaningful understanding of
the enlarged group's performance. Underlying growth has been calculated by
taking the increase in 2004 turnover, including turnover from acquisitions, over
2003 pro forma turnover, at constant exchange rates.  The 2003 pro forma
turnover assumes that any acquisitions and discontinued operations were owned
for the comparable period in the prior year and therefore includes
pre-acquisition turnover for 2003.



Regional turnover performance


                                           6 months to 30 June           Change
                                         2004                2003*          Reported      Underlying %
                                            £m                  £m                 %
     UK                                   77.4                60.3               28.5               3.1
     France                               66.4                57.8               14.8               3.3
     Rest of Europe                      147.8                90.1               63.9               6.5
Europe                                   291.6               208.2               40.1               4.8
Americas                                 114.5                70.6               62.2               4.0
Asia Pacific                              39.9                26.5               50.5               7.1
Total                                    446.0               305.3               46.1               4.8

*  restated as explained in Note 1 to the financial statements



Europe (including Middle East and Africa)

Overall market conditions improved in Europe during the first half, although the
rate of improvement varied by country.  Against this background, TNS achieved
underlying turnover growth of 4.8 per cent in the region.



The UK continued to benefit from a strong performance in the Consumer sector,
both in Worldpanel and customised activities.  Healthcare also achieved a good
level of year on year improvement, albeit against a weak comparative.  Overall,
the UK achieved underlying growth of 3.1 per cent in the period.  France
delivered underlying growth of 3.3 per cent, also benefiting from further
improvement in consumer panel activities.  With a pick up in public relations
activity, Media Intelligence grew well in the period.



Underlying growth in Rest of Europe was 6.5 per cent.  Germany performed
strongly, achieving an underlying growth rate well ahead of the market, mainly
driven by activity in the Consumer and Automotive sectors.  Spain continued to
deliver solid growth, driven by consumer panels and supported by the newly
acquired Area automotive business.






Americas

The Americas region achieved underlying growth of 4.0 per cent.  The US
benefited from a strong performance by the TNS NFO access panel, as well as by
other customised activities particularly in the Consumer sector, and the early
completion of some contracts.  We are seeing significant progress in realising
the benefits of the combined group in the US, which will drive further growth
for the full year and beyond.  Media Intelligence showed underlying improvement
over 2003, and should benefit during the second half from a pick-up in activity
around the Presidential elections.



Performance in the Americas region as a whole was adversely impacted by Mexico
and steps are being taken to improve performance in that country.



Asia Pacific

In a positive market environment the group has again achieved a strong
underlying performance in most of its markets, delivering underlying growth of
7.1 per cent. The successful integration of NFO, combined with a focus on the
provision of Business Solutions and targeting of key accounts, has assisted this
improvement.  Many new contract wins are coming from the strength of the
combined group across the region.



Sector turnover performance


                                            6 months to 30 June          Change
                                         2004                2003*          Reported      Underlying %
                                           £m                   £m                 %
Consumer                                 158.6                 98.1              61.8               6.8
Media                                     84.2                 80.6               4.4               3.4
Business Services                         62.0                 39.2              58.2             (1.2)
IT/Telecoms                               48.6                 34.7              39.9               5.0
Healthcare                                38.3                 20.6              85.6              10.2
Other activities                          54.3                 32.1              68.9               4.6
Total                                    446.0                305.3              46.1               4.8

*  restated as explained in Note 1 to the financial statements



Consumer

Worldpanel has continued its steady growth across all regions during the first
half.  The UK again delivered a strong performance, benefiting from new products
and key account initiatives.  France also performed well, achieving solid client
retention as well as a number of new business wins. Other panel activities, most 
notably in Spain, Latin America and Asia Pacific achieved good levels of 
underlying improvement.



Consumer customised delivered strong underlying improvement in the first half,
particularly in the UK and Asia Pacific, as well as the US, where the access
panel continues to drive growth.








Media

Overall the Media sector achieved underlying growth of 3.4 per cent in the first
half.



Media Intelligence activities have shown a solid improvement over 2003.  TNS has
strengthened its product offering and is winning market share in France and
Spain.  The market in the US is starting to show signs of improvement and is
expected to pick up further in the second half with the Presidential elections
and recovery in advertising markets.



TV & Radio Audience Measurement continues to benefit in particular from strong
performance in China, where both People Meter and diary measurement have
undergone significant expansion.



Business Services

This sector was impacted by difficult market conditions last year.  An
underlying decline of 1.2 per cent in the first half of 2004 indicates that the
Business Services market is beginning to stabilise.



IT/Telecoms

Overall IT/Telecoms achieved underlying growth of 5.0 per cent in the first
half.  Telecoms saw good underlying growth across the group, with a particularly
strong performance in Continental Europe, where the focus on key accounts is
generating new business.



IT also showed underlying improvement during the period but is operating against
a backdrop of caution in the business-to-business sector in the US.



Healthcare

The Healthcare sector has shown good year on year improvement in the first half,
achieving underlying growth of 10.2 per cent, albeit against a weak comparative
in 2003. The US, UK and Germany all delivered good underlying growth, fuelled by
expansion of key international accounts.



Other activities

The Polling & Social sector benefited from a strong performance in Germany, as
well as the Asia Pacific region where elections were held in Korea and the
Philippines.



The Automotive sector was strengthened during the first half by the acquisition
of Area, the market leader in Spain, which has been successfully integrated.
With market conditions starting to show some improvement, the sector has
achieved modest underlying growth over the previous year.





ENDS



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




GROUP PROFIT AND LOSS ACCOUNT


                                                                                    Unaudited          Audited
                                                                          6 months to 30 June        Full Year
                                                                                     Restated*        Restated*
                                                                              2004       2003             2003
                                                                                £m         £m               £m

Turnover - continuing activities                                             446.0      305.3            805.2
Less share of joint ventures                                                  (7.8)      (7.8)           (15.7)
Turnover excluding joint ventures (note 2)                                   438.2      297.5            789.5

Cost of sales                                                               (151.1)     (98.8)          (275.6)

Gross profit                                                                 287.1      198.7            513.9
Administrative expenses                                                     (259.7)    (180.0)          (460.3)
Integration costs                                                             (5.7)         -             (9.0)
                                                                            (265.4)    (180.0)          (469.3)
                                                                            
Operating profit before joint ventures and associates
Continuing activities (after goodwill charges of  £12.0m, 2003 £5.9m,
2003 full year £23.3m)                                                        21.7       18.7             44.6

Share of operating profit of joint ventures (after goodwill charges of         1.2        0.9              2.2
£0.3m, 2003 £0.3m, 2003 full year £0.6m)                                                  

Operating profit including joint ventures before goodwill charges and         40.9       25.8             79.7
integration costs
Integration costs                                                             (5.7)         -             (9.0)
Goodwill charges                                                             (12.3)      (6.2)           (23.9)

Operating profit including joint ventures                                     22.9       19.6             46.8
Share of operating profit of associates                                        0.6        0.1              0.6

Profit on ordinary activities before interest and taxation                    23.5       19.7             47.4
Interest receivable and similar income                                         0.2        0.7              1.2
Interest payable                                                              (8.8)      (5.6)           (15.6)
Other finance charges                                                         (1.1)      (1.0)            (1.7)

Profit on ordinary activities before taxation                                 13.8       13.8             31.3
Taxation on profit on ordinary activities                                     (7.0)      (6.2)           (18.0)

Profit on ordinary activities after taxation                                   6.8        7.6             13.3
Minority interests                                                            (1.1)      (0.9)            (1.5)

Profit for the period                                                          5.7        6.7             11.8
Dividends                                                                     (4.8)      (4.1)           (13.1)

Retained profit/(loss) for the period                                          0.9        2.6             (1.3)

Adjusted earnings per share** (note 3)                                         4.7p       3.5p            10.2p

Basic earnings per share (note 3)                                              1.3p       1.7p             2.8p

Diluted earnings per share (note 3)                                            1.3p       1.7p             2.8p

Dividend per share                                                             1.1p      0.95p             3.0p




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.

* Restated in line with UITF 17 (revised), as explained in Note 1 to the
financial statements

** Before goodwill charges and costs related to the integration of NFO




GROUP BALANCE SHEET


                                                                                        Unaudited         Audited
                                                                                       at 30 June       at 31 Dec
                                                                                         Restated*       Restated*
                                                                              2004           2003            2003
                                                                                £m             £m              £m
Fixed assets
Intangible assets                                                            370.8          174.2           371.1
Tangible assets                                                               80.9           54.9            81.0
Investments
Share of gross assets of joint ventures                                       23.0           24.6            24.6
Share of gross liabilities of joint ventures                                  (5.4)          (4.1)           (4.6)
                                                                              17.6           20.5            20.0
Associates                                                                     6.9            1.0             7.1
Other investments                                                                -            1.5             0.3
                                                                              24.5           23.0            27.4
                                                                             476.2          252.1           479.5

Current assets
Stock                                                                         80.8           38.5            64.5
Debtors                                                                      256.0          168.1           265.0
Current asset investments                                                      0.9              -             0.9
Cash at bank and in hand                                                      21.5           68.2            32.2
                                                                             359.2          274.8           362.6

Creditors:  amounts falling due within one year                             (332.6)        (223.0)         (426.4)

Net current assets/(liabilities)                                              26.6           51.8           (63.8)

Total assets less current liabilities                                        502.8          303.9           415.7
Creditors:  amounts falling due after more than one year                    (376.9)        (203.5)         (294.3)
Provisions for liabilities and charges                                       (40.4)         (23.3)          (44.7)

Net assets                                                                    85.5           77.1            76.7

Capital and reserves
Called up share capital                                                       22.3           21.5            22.2
Share premium                                                                122.8          104.6           120.2
Other reserves                                                                 1.2            1.2             1.2
Profit and loss account                                                      (67.5)         (55.4)          (73.8)

Equity shareholders' funds                                                    78.8           71.9            69.8
                                                                                          
Minority interests                                                             6.7            5.2             6.9

                                                                              85.5           77.1            76.7



* Restated in line with UITF 17 (revised) and UITF 38, as explained in Note 1 to
the financial statements


 GROUP CASH FLOW STATEMENT


                                                                                        Unaudited     Audited  at
                                                                                       at 30 June          31 Dec
                                                                                         Restated*       Restated*
                                                                             2004            2003            2003
                                                                               £m              £m              £m
Cash flow from operating activities
Net cash inflow from continuing operating activities (note 4)                27.3            25.1           104.9

Dividends received from joint ventures and associates                         0.7             0.8             3.5
Returns on investments and servicing of finance
Interest received                                                             0.2             0.7             1.1
Interest paid                                                               (12.0)           (5.9)          (13.1)
Capitalised arrangement fees                                                    -            (2.5)           (5.6)
Dividends paid to minority interests                                         (0.6)           (0.4)           (0.9)

Net cash outflow from returns on investments and servicing of finance       (12.4)           (8.1)          (18.5)

Taxation
Taxation paid                                                               (11.0)           (5.6)          (19.4)

Capital expenditure and financial investment
Purchase of tangible fixed assets                                           (14.3)           (8.4)          (22.7)
Purchase of own shares                                                       (4.1)              -               -
Sale of tangible fixed assets                                                 1.3             2.3             4.4

Net cash outflow from capital expenditure and financial                     (17.1)           (6.1)          (18.3)
investment

Acquisitions and disposals
Purchase of subsidiary undertakings (note 4)                                 (2.1)           (3.0)         (279.8)
Net cash acquired with subsidiary undertakings and businesses                 0.3               -            10.9
Sale of subsidiary undertakings and businesses                                0.4               -             0.3
Net cash disposed of on sale of subsidiary undertakings and businesses       (0.3)              -            (0.2)

Net cash outflow from acquisitions and disposals                             (1.7)           (3.0)         (268.8)

Equity dividends paid                                                           -               -           (10.7)

Cash outflow before financing                                               (14.2)            3.1          (227.3)
Financing
Issue of shares                                                                 -            52.0            52.0
Proceeds on exercise of share options                                         1.3             1.0             2.9
Expenses arising on the issue of shares                                         -            (1.1)           (1.1)
Increase in debt                                                              3.0           (22.8)          170.5

(Decrease)/increase in cash in the period                                    (9.9)           32.2            (3.0)





* Restated in line with UITF 17 (revised), as explained in Note 1 to the
financial statements



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES


                                                                                         Unaudited        Audited
                                                                               6 months to 30 June      Full Year
                                                                                          Restated*      Restated*
                                                                               2004           2003           2003
                                                                                 £m             £m             £m
Profit for the period                                                           5.7            6.7           11.8
Disposal of goodwill in reserves                                                  -              -            0.7
Translation differences on foreign currency net investments less
translation     differences on foreign currency loans taken out to fund         9.2           (2.8)         (19.4)
those investments
Tax on gains on foreign currency borrowings hedging foreign investments        (0.4)             -              -
Premium on placement shares issued taken to merger reserve                        -           50.0              -
Profit on redemption of shares following placement of share capital               -              -           50.0

Total recognised gains and losses relating to the period                       14.5           53.9           43.1
Prior period adjustments since last annual report  - UITF 17 (note 1)          (1.1)
                                                                               13.4





RECONCILIATION OF MOVEMENTS IN EQUITY SHAREHOLDERS' FUNDS


                                                                                       Unaudited          Audited
                                                                             6 months to 30 June        Full Year
                                                                                        Restated*        Restated*
                                                                              2004          2003             2003
                                                                                £m            £m               £m
Profit for the period                                                          5.7           6.7             11.8
Dividends                                                                     (4.8)         (4.1)           (13.1)
                                                                               0.9           2.6             (1.3)

Amounts arising on the exercise of share options - taken to share                -           0.2              0.2
premium
Disposal of goodwill in reserves                                                 -             -              0.7
Translation differences on foreign currency net investments less               8.8          (2.8)           (19.4)
translation   differences on foreign currency loans taken out to fund
those investments   (net of taxation)
Premium on placement shares issued taken to merger reserve                       -          50.0                -
Amounts deducted in respect of shares issued to a qualifying employee
share ownership trust                                                            -          (1.0)            (1.1)
Amounts arising on the exercise of share options                               0.2           0.2              0.3
Profit on redemption of shares following placement of share capital              -             -             50.0
Purchase of own shares held in trust                                          (4.1)            -                -
Consideration received for own shares on exercise of options                   0.3             -                -
UITF 17 charge for the period                                                  0.4             -                -
New share capital issued (including share premium) net of expenses             2.7           1.0             17.3

Net addition to equity shareholders' funds                                     9.0          51.0             47.5
Opening equity shareholders' funds as previously reported                     75.0          26.4             26.4
Prior period adjustment reported since last annual report - UITF 38           (5.2)         (6.1)            (5.2)
Prior period adjustment reported since last annual report  - UITF 17             -           0.6              1.1
Opening equity shareholders' funds as restated                                69.8          20.9             22.3

Closing equity shareholders' funds                                            78.8          71.9             69.8




* Restated in line with UITF 17 (revised) and UITF 38, as explained in Note 1 to
the financial statements



NOTES TO THE INTERIM STATEMENT



1.                   Basis of accounting

The financial statements have been prepared on the basis of the accounting
policies set out in the group's 2003 annual report and include the accounts of
Taylor Nelson Sofres plc and its subsidiary undertakings and the group's share
of the results and net assets of joint ventures and associates, based upon the
gross equity and equity methods of accounting respectively.  The interim
financial statements, which were approved by the directors on 6 September 2004,
are unaudited and have not been reviewed in accordance with APB 1993/1.  The
interim report does not comprise full financial statements within the meaning of
Section 240 of the Companies Act 1985.  The figures for the year ended 31
December 2003 are an extract from the full financial statements for that period
restated as detailed below, which have been delivered to the Registrar of
Companies.  The auditors' opinion on those accounts was unqualified and did not
contain a statement under Section 237 (2) or (3) of the Companies Act 1985.



UITF Abstract 38 'Accounting for ESOP trusts' and the revision of UITF Abstract
17 'Employee share schemes' were issued on 15 December 2003 and have been
applied for the first time in these statements. Under UITF 38, shares held
through an ESOP trust are shown as a deduction in arriving at shareholders'
funds. Previously these shares were shown as a fixed asset investment. The
reclassification of own shares held from fixed asset investments to equity has
reduced net assets by £9.0m at 30 June 2004 (30 June 2003 - £6.1m, 31 December
2003 - £5.2m, 1 January 2003 - £6.8m).  In addition, £0.2m relating to gains on
the exercise of share options has been reclassified from other reserves to share
premium as at 30 June 2003 and 31 December 2003. Under the revised UITF 17,
share based payments made are charged to the profit and loss based on the
intrinsic value of the shares rather than the book value. The amendment to UITF
17 has resulted in a reduction in operating profit of £0.6m for the six months
to 30 June 2003 and a reduction of £1.1m for the year ended 31 December 2003.
There has been no change in the net assets at 30 June 2003 and 31 December 2003
as a result of the revisions to UITF 17. The impact of the revision in the six
months to 30 June 2004 has been to reduce operating profit by £0.4m.



The comparative results for the six months to 30 June 2003 have been adjusted to
reflect the change in accounting policy on revenue recognition following the
publication of Application Note G to FRS 5 'Reporting the substance of
transactions', set out in the group's 2003 annual report. The impact of this
change is to increase revenue and operating profit by £0.6m.



2.                   Geographical analysis of turnover

In the opinion of the directors, the group has only one class of business, which
is the provision of market information services.
                                                                            6 months to 30 June
                                                                          2004             2003
                                                                         Total         Restated*
                                                                            £m            Total
Turnover                                                                                     £m
                                                                                             
Sales by origin
Europe                                                                                    
   - group                                                               290.6            207.2  
   - joint ventures                                                        1.0              1.0
Americas
   - group                                                               113.6             69.7
   - joint ventures                                                        0.9              0.9
Asia Pacific
   - group                                                                34.0             20.6
   - joint ventures                                                        5.9              5.9
Total                                                                    446.0            305.3
   - group                                                               438.2            297.5
   - joint ventures                                                        7.8              7.8

Intra-group turnover between geographic segments is not considered material



* Restated in line with UITF 17 (revised), as explained in Note 1 to the
financial statements


 NOTES TO THE INTERIM STATEMENT



3.                   Earnings per share

Basic earnings per share have been calculated on the profit after taxation and
minority interests of £5.7m (2003 £6.7m) and on 436.4m shares (2003 390.9m),
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 443.9m (2003 395.7m).



Adjusted earnings per share before goodwill charges and charges related to the
integration of NFO have been calculated on the profit after taxation and
minority interests of £20.4m (2003 £13.4m), which excludes goodwill charges of
£12.3m (2003 £6.2m) and integration costs of £2.4m (2003 £0.5m of finance costs)
net of tax and on the basic weighted average number of shares. The directors
believe that earnings per share before goodwill charges and integration costs
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:


                                                                           2004             2003
Weighted average number of shares (millions)
Share capital                                                             444.3            400.5
Shares held by ESOP                                                        (1.6)            (2.2)
Shares held by EBT                                                         (6.3)            (7.4)
Basic earnings per share denominator                                      436.4            390.9

Dilutive effect of share options                                            7.5              4.8
Dilutive earnings per share denominator                                   443.9            395.7




 NOTES TO THE INTERIM STATEMENT



4.             Consolidated statement of cash flow

Reconciliation of operating profit to net cash inflow from operating activities


                                                                    Unaudited          Audited
                                                          6 months to 30 June        Full Year
                                                                     Restated*        Restated*
                                                         2004            2003             2003
                                                           £m              £m               £m
Operating profit                                         21.7            18.7             44.6
Amortisation and impairment of intangible fixed          12.3             6.1             23.8
 assets                                                                   
Depreciation of tangible fixed assets                    12.3             9.6             22.5
Profit on sale of fixed assets                              -            (0.9)            (1.2)
UITF 17 charge                                            0.4             0.6              1.1
(Increase)/decrease in stock - work-in-progress         (17.1)           (8.7)             8.5
Decrease/(increase) in debtors                            6.2            (4.8)           (16.5)
(Decrease)/increase in creditors                         (6.8)            5.0             20.0
(Decrease)/increase in provisions                        (1.7)           (0.5)             2.1
Net cash inflow from continuing operating                
activities                                               27.3            25.1            104.9



Reconciliation of net cash flow to movement in net debt


                                                                           2004
                                                                             £m
Decrease in cash in the period                                             (9.9)
Cash inflow from increase in debt                                          (3.0)
Change in net debt resulting from cash flows                              (12.9)
Translation difference                                                     10.7
Non-cash movement                                                          (0.8)
Capitalised arrangement fees                                                  -
Loans and finance leases acquired                                             -
Movement in net debt in the period                                         (3.0)
Net debt at 1 January                                                    (367.7)
Net debt at 30 June                                                      (370.7)




* Restated in line with UITF 17 (revised), as explained in Note 1 to the
financial statements


NOTES TO THE INTERIM STATEMENT



4.             Consolidated statement of cash flow (continued)



Analysis of net debt


               At 1  Jan      Cash flow       Exchange        Non-cash    Acquisitions      Disposals    At 30  June
                    2004                      movement       movements                                          2004
                      £m             £m             £m              £m              £m             £m             £m    
Cash at bank        32.2          (10.9)          (0.8)              -             1.3           (0.3)          21.5
and in hand

Loans             (107.0)             -            2.8            86.5            (1.0)             -          (18.7)
repayable
within 1
year

Loans             (291.9)          (2.2)           8.7           (87.3)              -              -         (372.7)
repayable
after more
than 1 year

Obligations         (1.0)           0.2              -               -               -              -           (0.8)
under
finance
leases            
                  (367.7)         (12.9)          10.7            (0.8)            0.3           (0.3)        (370.7)

The non-cash movements represent the amortisation of arrangement fees of £0.8m
and the renegotiation of borrowing facilities.



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


                                                                                              2004

                                                                                                £m
Cash consideration
Prior year acquisitions                                                                       (1.7)
2004 acquisitions                                                                             (2.6)
NFO acquisition - receipt of recoverable amount                                                2.2
Net cash outflow in respect of the purchase of subsidiary undertakings                        (2.1)





NOTES TO THE INTERIM STATEMENT



5.            Acquisitions

On 11 February 2004, the group acquired a 75.3% share of Area Investigacion SA,
the leading provider of automotive research in Spain. Contributions from
acquisitions is not material.



6.            Currency conversion

The 2004 unaudited interim profit and loss account has been prepared using,
among other currencies, an average exchange rate of US$1.8225 to the pound
(period ended 30 June 2003: US$1.6104; year ended 31 December 2003: US$1.6346)
and €1.4849 to the pound (period ended 30 June 2003: €1.4597; year ended 31
December 2003: €1.4456). The unaudited consolidated interim balance sheet as at
30 June 2004 has been prepared using the exchange rate on that day of US$1.8137
to the pound (30 June 2003: US$1.6492; 31 December 2003: US$ 1.7904) and €1.4905
to the pound (30 June 2003: 1.4449; 31 December 2003: €1.4196).



 7.           Post balance sheet events

Since the balance sheet date, the group has paid £5.4m (US$10.0m) to The
Interpublic Group of Companies as deferred consideration relating to the
acquisition of NFO WorldGroup, Inc. in 2003.







SHAREHOLDER INFORMATION



Dividend

The dividend will be paid on 13 December 2004 to shareholders on the register on
12 November 2004.

Internet

Information about Taylor Nelson Sofres and the current share price is available
on the group's internet site, at www.tns-global.com.  Material likely to be of 
particular interest to shareholders is contained in the Investor Centre, where 
you will also find copies of RNS announcements.

Investor relations

For investor enquiries, please contact Janis Parks, Head of Investor Relations

Tel + 44 (0)20 8967 1584

Fax +44 (0)20 8967 1386

Email: janis.parks@tns-global.com



Head and registered office

Taylor Nelson Sofres plc

Westgate

London W5 1UA

Tel +44 (0)20 8967 0007

Fax +44 (0)20 8967 4060

Registered number 912624



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