Taylor Nelson Sofres PLC
12 January 2006
For release at 07:00 12 January 2006
Taylor Nelson Sofres plc
Taylor Nelson Sofres plc (TNS), a world leader in market information, issues the
following trading update ahead of its 2005 full year results announcement on 6
TNS reaffirms current guidance that it expects to deliver underlying revenue
growth of around 4% and improvement in adjusted operating margin of 25-50 basis
points for the full year.
The demand for syndicated services continued to grow steadily. The demand for
custom research was more variable by both region and sector, reflecting broader
economic trends. Markets in the US, Asia and Latin America were all strong but
those in Western Europe showed limited growth. The Consumer sector continued to
be under pressure.
Europe: With a much-improved performance in the second half, the UK returned to
modest growth for the year overall. With France and the Rest of Europe
delivering better than anticipated revenue performance in the second half, the
region in total has grown well in the year, against a weak market environment.
Americas: The group had previously indicated that there was some uncertainty
over second half performance in the US custom business. The difficult
environment in the Consumer and domestic Healthcare sectors, together with
ongoing budget reductions from certain technology clients, caused a decline in
the US custom business in the second half. Operations in Latin America
continued to produce very strong growth but the Americas region overall will now
show a larger than anticipated decline for the year.
Asia Pacific: The region delivered another strong performance in the second
half, ahead of expectations, and recorded excellent growth for the year.
Sectors: Media, Healthcare, Automotive and Social & Polling all achieved very
good levels of growth for the year. Consumer, Technology and Business Services
are expected to be broadly flat.
Margin expectations remain in line with the guidance issued in July. The group
expects to achieve an improvement of 25-50 basis points in adjusted operating
margin in 2005.
Net debt at 31 December 2005 is expected to be around £300m (December 2004
£329.5m; June 2005 £342.9m), despite negative currency impact on US dollar debt.
TNS remains focused on the development of both underlying revenue and operating
margin and would expect to see improvement in both in 2006. Syndicated services
are expected to continue to improve at a steady rate. In custom research, the
rate of growth will be more variable by both region and sector.
For more information, please contact:
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
TNS is a market information group. We are the world's largest custom research
company and a leading provider of social and political polling. We are also a
major supplier of consumer panel, TV audience measurement and media intelligence
TNS operates a global network spanning 70 countries and employs over 13,000
people. We provide market information and measurement, together with insights
and analysis, to local and multinational organisations.
We combine our specialist sector knowledge with expertise in the areas of new
product development, positioning and segmentation, brand and advertising
research and stakeholder management to bring our clients up-to-the minute,
internationally consistent information.
We think differently to help our clients build competitive advantage, making TNS
the sixth sense of business.
This information is provided by RNS
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