Taylor Nelson Sofres PLC
09 July 2007
9 July 2007
Taylor Nelson Sofres plc
Pre close trading update
Taylor Nelson Sofres plc (TNS), a world leader in market information, today
issues the following trading update, ahead of reporting interim results on 3
• Underlying revenue growth for the first six months of 2007 is expected
to be over 5%
• US custom business returned to growth
• Good performance across rest of group
• Successful execution against strategy gives group confidence in outlook
for the year
Group: Organic revenue growth for the group for the first six months of 2007 is
expected to be over 5 per cent. The impact of foreign exchange is expected to
reduce reported revenue by around 4 per cent. The net effect of acquisitions and
disposals is anticipated to have a positive impact on reported revenue of around
1.5 per cent.
Europe: The region overall achieved good underlying growth. The UK had a strong
first half, based on the continued strength of syndicated services and a
significant improvement in the custom business. France and the Rest of Europe
achieved a steady performance.
North America: Encouraging progress is being made in rebuilding US custom, with
good levels of new business contributing to revenue growth in the first half in
that business and for the North America region as a whole.
Asia Pacific, Latin America, Middle East and Africa (ALM): The ALM region
continued to perform well in the first half.
Sectors: The Consumer sector has grown well, with improved performance across
all major markets. Growth in the Technology sector was strong. All other sectors
have performed well.
Share buy back and net debt
Since the share buy back programme started in September 2006, the group has
purchased a total of 27.7 million of its own shares for a value of £59.9
million. As part of the continued programme, £40.1 million of shares are
expected to be repurchased in the second half of 2007. After acquisition spend
of £23 million in the first half, net debt at 30 June 2007 is expected to be
around £325 million.
Full year outlook
For the full year, it is expected that revenue growth in syndicated services
will continue to be healthy, benefiting from new services and investments in
technology. In the custom business, revenue growth in Europe is anticipated to
remain steady. The US custom business is expected to continue to make steady
progress and North America overall is now expected to show growth for the year.
The ALM region should again outperform the market with double digit revenue
growth for the year.
As the group continues to execute against strategy, TNS remains confident in its
outlook for the year and expects to achieve improvement in both underlying
revenue growth and adjusted operating margin in 2007.
With effect from the interim results 2007, TNS will change its regional revenue
reporting to reflect the creation of the Asia Pacific, Latin America, Middle
East and Africa (ALM) region. It will report three regions: Europe (including
disclosure of UK, France, Rest of Europe), North America, and ALM. Previously
Middle East & Africa was included in Europe and Latin America was shown as part
of the Americas. Prior year comparatives are shown below.
H1 2006 FY 2006
UK 71.4 151.1
France 77.1 145.5
Rest of Europe 162.2 352.6
Europe 310.7 649.2
North America 101.1 209.2
ALM 68.7 145.8
Total 480.5 1,004.2
A conference call with Andy Boland, Finance Director, will be held at 08.30 on
Monday 9 July:
UK dial in 0845 245 5000
International dial in +44 (0) 1452 562 716
Conference ID 6367966
Thereafter a replay of the call will be available:
UK dial in 0800 953 1533 / 0845 245 5205
International dial in +44 (0) 1452 55 00 00
Replay access number 6367966#
For further information, please contact:
Janis Parks, Head of Investor Relations +44 (0)20 8967 1584
Joel Beckman, IR Director +44 (0)20 8967 1384
Pam Small/Ash Spiegelberg, Brunswick +44 (0)20 7404 5959
TNS is a global market insight and information group.
Our strategic goal is to be recognised as the global leader in delivering
value-added information and insights that help our clients to make more
As industry thought leaders, our people deliver innovative thinking and
excellent service to global organisations and local clients worldwide. We work
in partnership with our clients, meeting their needs for high-quality
information, analysis and foresight across our network of over 70 countries.
We are the world's foremost provider of custom research and analysis, combining
in-depth industry sector understanding with world-class expertise in the areas
of new product development, segmentation and positioning research, brand and
advertising research and stakeholder management. We are a major supplier of
consumer panel, media intelligence and internet, TV and radio audience
TNS is the sixth sense of business.
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