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Taylor Nelson Sofres (TNS)

  Print      Mail a friend       Annual reports

Monday 18 March, 2002

Taylor Nelson Sofres

Final Results

Taylor Nelson Sofres PLC
18 March 2002

                              Taylor Nelson Sofres

                      A world leader in market information

                       Strategy drives strong performance

Highlights for the year ended 31 December 2001

  • Turnover up 21.6% to £582.7m, with underlying growth of 6.1%, ahead of
  • EBITDA* up from £60.4m to £74.4m, an increase of 23.1%
  • Operating margin* increases from 9.3% to 9.5%
  • Profit before tax* up 15.0% from £37.8m to £43.5m
  • 14.0% increase in earnings per share* to 8.0p
  • Net cash inflow from operating activities up 30.1%
  • Industry proves resilience, with drivers for growth independent of
    short-term economic pressures
  • Growth in all geographic regions and specialist sectors
  • Proportion of higher margin syndicated services continues to increase

* before goodwill charges

Chief Executive, Mike Kirkham said:

"Against a difficult economic environment, we estimate that the market
information industry grew by 5 per cent in 2001, demonstrating its relative
resilience. Once again, the successful implementation of our strategy enabled us
to out-perform the market.

The unique structure of the group, with what we consider to be its unrivalled
combination of global network, sector spread and mix of continuous/syndicated
and customised activities, provides the ideal base from which to maintain
out-performance of the market. With a strong management team in place, we
continue to seek out acquisitions that reinforce our sector strength and to
develop new services to meet clients' evolving needs. Investment into the
development of new services and technologies, which will maintain our position
at the forefront of the industry, will remain a priority. At the same time, we
will focus on steady margin improvement. Having entered the year with the order
book ahead of last year, we are confident that we can continue our steady growth
in 2002."

For further information, please contact:

On 18 March, all enquiries to +44 (0)20 7638 9571


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

David Lowden, Finance Director, +44 (0)20 8967 4009

Janis Parks, Investor Relations Manager, +44 (0)20 8967 1584

Margaret George, Citigate Dewe Rogerson, +44 (0)20 7638 9571

Email to: [email protected]

A webcast of the results presentation made to analysts will be available on the
Investor Centre of the group's website, at, from 16.00 on
Monday 18 March 2002.

Note to editors

Taylor Nelson Sofres

Through its international network of 230 offices in more than 50 countries,
Taylor Nelson Sofres provides market information services in over 80 countries
to national and multi-national organisations. It is ranked as the fourth largest
market information group in the world. Further information on Taylor Nelson
Sofres is available from the corporate website:

Pictures of management are available for the media to access and download from
VisualMedia Online at


Taylor Nelson Sofres, a world leader in market information, today announces its
preliminary results for the year ended 31 December 2001.


During 2001, the group continued to make acquisitions to complete its global
network and strengthen its specialist sectors. Taking into account these
acquisitions and the full impact of those made last year, reported turnover
including joint ventures increased by 21.6 per cent to £582.7 million (2000
£479.3 million). Underlying growth (excluding the effect of currency and
acquisitions) was 6.1 per cent, ahead of estimated market growth of 5 per cent.

Operating profit and margin

Operating profit including joint ventures and before goodwill charges was up
24.5 per cent at £55.2 million (2000 £44.4 million). With levels of development
expenditure being maintained, operating margin improved from 9.3 to 9.5 per
cent. In the aftermath of September's terrorist atrocities, press and broadcast
monitoring activities were adversely affected by the dominance of a single news
story and Omnibus and focus group services also saw reduced demand. While these
are both short-term factors, they affected some of the group's higher margin
operations, holding back overall margin improvement. The group expects to
improve operating margins by around 0.5 percentage points in 2002.

Profit before tax

Profit before tax and goodwill charges grew by 15.0 per cent from £37.8 million
to £43.5 million. Goodwill charges of £13.9 million (2000 £5.4 million) comprise
goodwill amortisation, together with write-downs of £4.9 million. Given current
economic conditions and market developments, it is deemed appropriate to revalue
three investments. The refocusing of the Indetec telecoms business on a reduced
client base has led to a write down of £2.3 million. £1.8 million relates to
Argentina, reflecting the effects of economic uncertainty and devaluation. The
balance of the write-down relates to the group's UK in-store product testing
company, which has not developed in line with expectations. As a result of these
write-downs, profit before tax after goodwill charges fell by 8.7 per cent to
£29.6 million (2000 £32.4 million).

Earnings and dividend per share

Earnings per share before goodwill charges were 8.0p, an increase of 14.0 per
cent over the 7.0p achieved in the previous year. The board is recommending a
final dividend of 1.6p per share (2000 1.4p), giving a 14.3 per cent increase in
the total dividend for the year of 2.4p (2000 2.1p).


The net interest charge was £10.8 million, compared with £7.2 million in 2000.
This was driven by higher net debt of £209.2 million (£152.0 million), which
resulted from expenditure on acquisitions, offset by an improved working capital
performance. Interest cover against EBITDA was 6.9x (2000 8.4x).

The additional finance charge of £0.9 million (2000 £0.6 million) represents the
amortisation of bank facility arrangement fees of £0.3 million (2000 £nil),
together with notional interest in respect of deferred consideration on
acquisitions, which the group is required to recognise under FRS7 but which is
not a cash item. The balance of deferred consideration at the end of 2001 was
£29.8 million (2000 £18.5 million), of which £27.0 million (2000 £18.5 million)
is contingent upon performance.

The group's effective tax rate before goodwill charges was 30.5 per cent (2000
30.7 per cent) and is expected to remain at a similar rate in the current year.

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

"Against a difficult economic environment, we estimate that the market
information industry grew by 5 per cent in 2001, demonstrating its relative
resilience. Once again, the successful implementation of our strategy enabled us
to out-perform the market, with underlying growth of 6.1 per cent overall and
7.0 per cent in our market information activities, which now represent 98 per
cent of group turnover.

Strategy delivers out-performance

"The strategy adopted by the group at the time of the merger with Sofres at the
end of 1997 has delivered strong profitable growth over the past four years and
led to us receiving the accolade of Market Research Agency of the Year in 2001
from UK Marketing magazine. I was closely associated with this strategy before
becoming Chief Executive in June of last year and, given its evident success, I
will not be making any fundamental changes, although I am committed to
increasing the speed of its implementation.

"The out-performance of two areas of our operations in 2001 clearly demonstrates
the benefits we derive from having a strategy that is closely aligned with the
drivers for growth in the industry as a whole. In the US, our custom research
company, TNS Intersearch, achieved underlying turnover growth of 4.2 per cent in
a very difficult market. This outstanding performance was achieved by building
on the company's established strong client relationships, increased marketing of
Branded Solutions, developing a stronger presence in the company's key sectors
and by greater use of technology.

"Healthcare was a sector which performed strongly overall, using the group's
international network to meet the increased demand coming from the
newly-consolidated pharmaceutical companies. We gained share in the US domestic
market and internationally, as we utilised our industry expertise to develop new
services, built on our portfolio of syndicated services and developed our
internet panels. Our recent receipt of an award from a major international
client exemplified the group's pre-eminence in the Healthcare sector. The
Johnson & Johnson Pharmaceuticals Strategic Marketing Group selected TNS
Healthcare for its outstanding performance as a Primary Market Research Agency.

Building on one of the most powerful networks in the industry

"I believe that our network today - more than 230 offices in over 50 countries -
is one of the strongest, if not the strongest, in our industry. Through it we
can support our international specialist sector operations, as well as more
localised activities such as social and political polling and financial

"Our industry continues to consolidate and, in 2001, we were again at the
forefront of that consolidation. The acquisition of the MDC Group took us into
Finland, Russia and the Baltic States and CR Group gave us a presence in Mexico.
We also further strengthened our Media Intelligence sector by acquiring Adscope
and TES in the US and SiS, which currently operates primarily in the UK.

"The MDC Group, acquired in March 2001, has been integrated rapidly into the
group. The market leader in Finland, it is now collaborating with our businesses
in Denmark and Norway. Already strong in media measurement, MDC is using the
expertise available in the group's Media Intelligence sector to develop these
operations further.

"During 2001, the group completed the acquisition of a 46 per cent shareholding
in CTR, one of the leading market information companies in China. We run a TV
measurement panel across the nation, with nine city meter panels producing
overnight ratings, as well as 63 city and 12 provincial diary panels. The
introduction of our 5000 series meters gives the added benefit of Chinese
language display and electronic measurement will be taken to a number of new
cities during 2002. We have broadened our advertising expenditure monitoring in
China to 500 TV stations and are extending our use of syndicated products and
Branded Solutions in the customised market.

Exploiting the power of the network

"Two of the acquisitions made in 2001 are clear examples of how we make full use
of our network and specialist sector structure. With both TES and SiS, we
purchased companies providing niche services with a single market focus but
having considerable potential for geographic expansion, which we can meet using
our global presence. As providers of syndicated information for the cinema
industry and evaluation of the rapidly growing sports sponsorship market
respectively, both have synergies with other activities in our Media
Intelligence sector.

Growth in syndicated services through acquisition and organically

"In 2001, we increased the percentage of turnover from syndicated and continuous
operations to 49 per cent, compared with 45 per cent in the previous year. This
was achieved partly through acquisition - for example, over 50 per cent of MDC's
business is continuous and syndicated and TES is entirely syndicated. The
ongoing expansion of our consumer panels and the establishment of new syndicated
services in sectors such as Healthcare and Telecoms also contributed to the
improvement. This change in the mix of our business, together with greater
operational efficiencies achieved particularly through technological
development, leads to enhanced margin performance.

Increased importance of Branded Solutions

"As evidenced by our performance in the US, the increased use of Branded
Solutions, in both established and developing markets, is a strong driver of
turnover growth. We have, therefore, continued to invest in this area during
2001, acquiring two new products - Conversion Model and Buy(c)Test, and
developing MarketWhys in-house. With the rapid change our clients are
experiencing in their markets, the trend towards continuous tracking increases
and the use of Branded Solutions facilitates our development of such services.

Internet capabilities strengthened

"The importance of the internet in data collection and delivery continues to
increase, particularly in the US. The acquisition in early 2002 of Greenfield's
custom research division, now integrated into TNS Intersearch, has strengthened
our position with clients seeking web-based research and reinforced the group's
expertise in this important area. TNSInfo, our web portal delivery system, has
been incorporated into our consumer panel operations and the benefits are
showing through strongly. Its use is now being extended into the Healthcare

New appointments strengthen management team

"In 2001, I reviewed the organisation of the group, with the aim of having in
place a management structure able to facilitate the speedier implementation of
our strategy. It also had to reflect the growing geographical and cultural
diversity of the group and to combine the advantages of continuity with the
benefits of new thinking.

"There have been two fundamental changes. I have established an Executive
Committee, comprising myself, Finance Director David Lowden, five senior
managers with sector and regional responsibilities based in France, Netherlands,
Spain, UK and US, and the group's HR director. This committee is responsible for
the day-to-day running of the group. In addition, four of these senior managers
- Mike Penford, Jean-Michel Portier, Pedro Ros and Bruce Shandler, have been
appointed as group associate directors. This allows them to participate in
board-level discussions. New appointments include heads of Northern and Central
Europe, Asia Pacific and Telecoms. All three bring to the group new thinking and
client perspective from outside the market information industry.

Ideally placed for future growth

"The drivers that have fuelled the growth of the market information industry
over the past decade remain as relevant as ever. We anticipate, therefore, that
our market will grow by up to 5 per cent in 2002 and that the level of growth
will begin to accelerate as economic activity picks up. The unique structure of
the group, with what we consider to be its unrivalled combination of global
network, sector spread and mix of continuous/syndicated and customised
activities, provides the ideal base from which to maintain out-performance of
the market.

"With a strong management team in place, we continue to seek out acquisitions
that reinforce our sector strength and to develop new services to meet clients'
evolving needs.

"Investment into the development of new services and technologies, which will
maintain our position at the forefront of the industry, will remain a priority.
At the same time, we will focus on steady margin improvement.

"Having entered the year with the order book ahead of last year, we are
confident that we can continue our steady growth in 2002."



As the group recorded another year of growth ahead of the market, turnover of
its underlying activities increased by 6.1 per cent. Acquisitions and currency
added 13.7 per cent and 1.8 per cent respectively, to give a total turnover of
£582.7 million, an increase of 21.6 per cent over the previous year.

Global network delivers results

                               Year to 31 December                  Increase
                                   2001           2000       Reported       Underlying

                                     £m             £m              %                %
                UK                132.5          127.1            4.2              2.1
                France            107.5           98.5            9.2              6.9
                Rest of           167.1          121.1           38.0             13.4
                              ---------     ----------
Europe                            407.1          346.7           17.4              7.5
Americas                          130.7           95.6           36.8              1.1
Asia Pacific                       44.9           37.0           21.3              8.9
                              ---------     ----------
Total                             582.7          479.3           21.6              6.1


In the UK, Healthcare had an excellent year with consumer panels also performing
well. Customised operations as a whole benefited from the reorganisation
undertaken in 2000, with government and social research showing particularly
good progress. Growth was adversely affected, however, by the impact on
broadcast and press monitoring activities and Omnibus services of the events of
September 11 and their aftermath.

The group's non-market research activities, which represented 2.0 per cent of
2001 group turnover, under-performed during the year. Excluding these
activities, underlying growth in the UK would have been 4.5 per cent and in
France, 8.3 per cent.

The encouraging performance in France, ahead of the market, was largely based on
the success of syndicated services and included the final year of the existing
NetValue contract. Media intelligence grew well, as the integration of new media
outlets supported advertising expenditure measurement and creative monitoring
benefited from the ongoing success of new services. Good growth was also seen
within the customised business, led by the Business services, IT and Telecoms

In the rest of Europe, Germany again progressed well, growing by over 30 per
cent, with an excellent performance in the Consumer, Telecoms and Automotive
sectors. The Netherlands continued to grow ahead of the market, reflecting the
strength of the group's operations in that country.


TNS Intersearch recorded underlying growth of 4.2 per cent, significantly ahead
of the market and achieved a number of major contract wins. Two new Branded
Solutions, Conversion Model and Buy(c)Test, were introduced into the US market,
while Miriad tracking business was bolstered by major new business wins and
expansion of existing contracts. These and other more localised initiatives,
such as the extension of the ESPN Sportspoll, a syndicated survey for sports
marketers, and promotion of Virtual Shopping programmes, delivered an increase
of over 30 per cent in Branded Solutions business. The company's sector focus
has led to an increase in its presence in Healthcare, IT and Telecoms. After a
difficult first half, the customised media business recovered later in the year
and won a new contract with a second major network broadcast company.

Growth in New York based CMR was held back by the ongoing uncertainty in the US
economy and the events of September 11. During the year, the company introduced
forecasts for the advertising industry, which were very well received and it
used new technologies to expand its monitoring from 75 to 100 markets. CMR made
two important acquisitions in the US: Adscope, the leading provider of
advertising expenditure information to the high-tech market; and TES, the
largest US supplier of box office verification and cinema tracking services to
the film industry and cinema operators. A number of new services were
introduced, primarily relating to use of the internet as a data delivery and
analysis tool and CMR's Broadcast Verification Service was extended into Canada.

Underlying growth for the region as a whole was impacted by a downturn in
Indetec's telecoms market in the second half and the economic problems in
Argentina. Operations in Argentina, which represent less than 1 per cent of
group turnover, remain profitable.
CR Group in Mexico has performed well since joining the group in July 2001.

Asia Pacific

Consumer panels fuelled much of the growth in Asia, with a particularly strong
performance in China and Taiwan. With seven well-established panels in Asia, the
group is now able to provide regional information to the major multi-nationals,
which highlights the great difference in consumer behaviour across countries.
Clients are benefiting from the detailed level of information the panels
provide. For example, in Malaysia, where the panel has grown faster than
expected, manufacturers are now able to appreciate the varied buying behaviour
of the different ethnic groups; information that cannot be obtained from retail

The customised operations had a reasonable year, with Korea, in particular,
gaining a number of large FMCG contracts, many generated by panel activity. The
Automotive sector also performed well but, in comparison with last year, the
region's overall growth was held back by a lack of election polling activity.
The group is entering into a new strategic alliance in Japan, which is expected
to lead to increased activity in that market. 2001 was affected by the
termination of the group's existing partnership in Japan.

Growth in all specialist sectors

                               Year to 31 December                  Increase
                                   2001           2000        Reported      Underlying

                                     £m             £m               %               %
Consumer                          182.6          162.4            12.5             6.9
Media                             152.3          106.6            42.8             5.4
Business services                  83.6           71.3            17.1             5.3
IT/Telecoms                        59.8           52.7            13.4             4.3
Healthcare                         42.8           35.1            22.1            20.5
Other activities                   61.6           51.2            20.6           (1.2)
                              ---------     ----------      ----------        --------
Total                             582.7          479.3            21.6             6.1


Growth in this sector was largely driven by the success of the group's consumer
panels, especially those in France and Asia. As expected in a difficult economic
environment, customised operations grew more slowly. There were some significant
highlights, however, notably in Germany and the US, where the group won a major
tracking study for an international drinks group, along with other contracts for
FMCG companies.


Underlying growth of 5.4 per cent was achieved despite the short-term impact of
September's events. Media Intelligence in France performed particularly well. In
the UK, customised benefited from an increase in tracking services and, in the
US, pre-launch TV programme testing, which was cut right back in the first half,
recommenced in the second.

The TV audience measurement (TAM) service in Singapore started on schedule in
January 2001 and a national service was launched in Romania later in the year.
The acquisition of MDC brought six new TAM countries to the group and an
agreement was concluded to introduce TNS PeopleMeters into the Dominican
Republic. The group's partner in Canada expanded its TNS PeopleMeter city panels
and, at the end of the year, launched a national service. Local firms using the
group's technology won industry contracts in the Netherlands and Belgium. In
Spain, the group's panel was increased to cater for the increased penetration of
digital television and to launch a new regional measurement. The number of
countries using InfoSysTV, the group's highly-regarded value added analysis
system, increased to 12, including the UK, where its use is continuing beyond
the termination of the BARB contract at the close of 2001.

Business services

An expansion of activities in Germany, with new and established clients,
spearheaded a good performance in Europe. In the US, new business wins were led
by the sales of Branded Solutions. The sector was impacted, however, in the
second half of the year, with severe disruption to focus group activity in New
York and a noticeable downturn in travel and leisure business.

IT and Telecoms

In a very difficult year for IT companies, activities in this sector improved
when compared with 2000. The primary reason for this success was the marketing
of Branded Solutions and the prevalence of customer satisfaction and brand
tracking research, sold on renewable annual contracts and less vulnerable to
cancellation. While the US remains the group's strongest market, encouraging
growth was seen in other countries. These included France and the Netherlands,
where pan-European business was won from several major IT companies. Similarly,
in Asia, the group won pan-Asian contracts from IT multi-nationals, through the
Singapore office.

After a very good first half, Telecoms growth was held back by the closure of
Indetec's regulatory consultancy operations. In addition, a number of Indetec's
clients among the local service providers in the US went out of business. The
company will now concentrate on its growing syndicated business. While this had
a significant impact on second half performance, it is encouraging that other
parts of the Telecoms business performed well. The group again benefited from
its strong relationships with the major telecoms companies and its focus will be
on developing these key client relationships in the future. On an international
basis, the group is conducting multi-country projects for three of the major
mobile phone companies. It has introduced new syndicated services and has
launched mobile phone panels in the UK and Spain.


The sector moved ahead even more strongly in the second half than the first, as
spending on new drug development increased, following a period of retrenchment
immediately after the consolidations that have taken place in the industry.
Strong domestic growth was reported in the US, UK, Germany, France and Spain.
Following the opening of a new sales office in the US, where most of the buying
decisions are made, international work increased by over 50 per cent. The
group's Omnimed international internet panel of doctors is now well established
and is being extended to include specialists and to cover more countries. The
group has expanded its key opinion leader syndicated services and is now running
its AsthmaMonitor on an international basis.


Operating profit

Operating profit including joint ventures and before goodwill charges increased
by 24.5 per cent to £55.2 million (2000 £44.4 million) and after goodwill
charges grew by 6.1 per cent to £41.3 million (2000 £39.0 million). Operating
margin before goodwill charges improved from 9.3 per cent to 9.5 per cent.


Income from associates has reduced to £nil (2000 £1.2 million), following the
group's acquisition of additional share capital in TNS Mode and Demoscopia,
together with the establishment of a joint venture in China. All these companies
were previously treated as associates.

Minority interests
Minority interests increased to £0.4 million (2000 £0.3 million), due
principally to the minority interests that came into the group with the MDC

Capital expenditure
Total capital expenditure for 2001 amounted to £20.0 million, of which £19.8
million related to tangible fixed assets and £0.2 million was the purchase of
intangibles. Cash realised from the sale of tangible fixed assets was £1.0

Net debt
The group had net debt of £209.2 million at the end of the year (2000 £152.0
million). The increase resulted from the level of acquisition activity in the
year. Current debt facilities extend to £308 million. Beyond this, the group has
the potential to arrange a further £92 million within existing covenants.

Cash flow and cash funds
Net cash inflow from operating activities was £72.7 million, compared with £55.9
million in 2000. The 30.1 per cent improvement was driven by the increase in
EBITDA from £60.4 million to £74.4 million, together with a reduction in working
capital. The net cash outflow for acquisitions during the year was £85.2 million
(2000 £94.7 million). The additional cash requirement was funded by a
combination of borrowings and cash generation. Cash at the end of the year was
£24.1 million. Surplus cash is invested on the money market only with leading
banks and institutions, in short term deposits and instruments.

Impact of recent financial reporting standards

The group has reviewed its pension arrangements, as part of the transition to
FRS 17. It currently has four defined benefit plans, in the UK, US and
Netherlands. The total asset values were £12.9 million at 31 December 2001. This
compares with the present value of the liabilities related to these plans of
£10.4 million. The group has an additional obligation of £2.6 million for lump
sum retirement payments, which is provided for in the accounts. The net pension
liability under FRS 17 would be £0.1 million, compared with the existing SSAP 24
provision carried on the balance sheet at 31 December 2001, of £3.0 million.
Under FRS 17, therefore, net assets would be written up by £2.9 million, before
deferred tax. This new reporting standard will be fully adopted by the group in
the financial statements for the year ended 31 December 2003.

The group has maintained full provision for deferred taxes prior to the release
of FRS 19 and it is unlikely to be materially impacted by this new standard. The
group will come fully into line with the standard's new disclosure requirements
for the current financial year.

During the year, the group continued to make acquisitions in line with its
strategy to reinforce its specialist sectors and to broaden its global reach.
They included TES and Adscope in the US, SiS in the UK, MDC in Finland, Russia
and the Baltics and CR Group in Mexico. The group also increased its holdings in
TNS Mode in India, from 30 per cent to 100 per cent and in Demoscopia in Spain,
from 40 per cent to 90 per cent.


The results of the group as extracted from the audited financial statements are
shown on the following pages.


For the year ended 31 December
                                                                     2001         2000

                                                         Notes         £m           £m
Continuing activities                                               541.6        479.3

Acquisitions                                                         41.1            -
                                                                 --------     --------
Turnover                                                     2      582.7        479.3

Less share of joint ventures - acquisitions                         (7.6)            -
                                                                 --------     --------
Turnover excluding joint ventures                            2      575.1        479.3
                                                                ---------     --------
Cost of sales                                                     (206.0)      (170.7)
                                                                 --------     --------
Gross profit                                                        369.1        308.6

Administrative expenses                                           (328.6)      (269.6)
                                                                ---------    ---------
Operating profit                                             2

Continuing activities (after goodwill charges of                     39.0         39.0
£12.0m, 2000 £5.4m)

Acquisitions (after goodwill charges of £1.7m,                        1.5            -
2000 £nil)
                                                                ---------    ---------
Operating profit before joint ventures and                           40.5         39.0

Share of operating profit of joint ventures                           0.8            -
(after goodwill charges of £0.2m, 2000 nil)

Operating profit including joint ventures (before            2       55.2         44.4
goodwill charges and associates)

Share of operating profit of associates                                 -          1.2
                                                                 --------     --------
Profit on ordinary activities before interest and                    41.3         40.2

Interest receivable and similar income                                0.6          0.9

Interest payable                                                   (11.4)        (8.1)

Other finance charges                                               (0.9)        (0.6)
                                                                  -------     --------
Profit on ordinary activities before taxation                        29.6         32.4

Taxation on profit on ordinary activities                          (13.3)       (11.6)
                                                                  -------     --------
Profit on ordinary activities after taxation                         16.3         20.8

Minority interests                                                  (0.4)        (0.3)
                                                                ---------     --------
Profit for the year                                                  15.9         20.5

Dividends                                                           (9.0)        (7.8)
                                                                ---------     --------
Retained profit for the year                                          6.9         12.7
                                                                    =====        =====
Adjusted earnings per share before goodwill                  3       8.0p         7.0p
                                                                  --------     -------
Basic earnings per share                                     3        4.3p        5.5p
                                                                  --------    --------
Diluted earnings per share                                   3        4.1p        5.3p
                                                                  --------     -------
Dividend per share                                                    2.4p        2.1p
                                                                  --------    --------

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


At 31 December
                                                                     2001         2000

                                                                       £m           £m
Fixed assets

Intangible assets                                                   202.0        136.8

Tangible assets                                                      58.3         54.2

                Share of gross assets of joint ventures              19.2            -

                Share of gross liabilities of joint                 (2.1)            -
                                                                ---------     --------
                                                                     17.1            -

                Associates                                            0.7          3.7

                Other                                                 7.9         11.2
                                                                 --------     --------
                                                                     25.7         14.9
                                                                ---------    ---------
                                                                    286.0        205.9
                                                                ---------    ---------
Current assets

Stocks and work-in-progress                                          34.0         39.9

Debtors                                                             144.4        139.8

Cash at bank and in hand                                             24.1         19.5
                                                              -----------   ----------
                                                                    202.5        199.2

Creditors: amounts falling due within one year                    (192.6)      (188.5)
                                                              -----------    ---------
Net current assets                                                    9.9         10.7
                                                              -----------    ---------
Total assets less current liabilities                               295.9        216.6

Creditors: amounts falling due after more than one year           (220.6)      (157.8)

Provisions for liabilities and charges                             (32.3)       (22.6)
                                                               ----------     --------
Net assets                                                           43.0         36.2
                                                                   ======        =====
Capital and reserves

Called up share capital                                              19.5         19.4

Share premium                                                       102.7        101.1

Other reserves                                                        0.9          0.4

Profit and loss account                                            (85.2)       (87.7)
                                                               ----------   ----------
Equity shareholders' funds                                           37.9         33.2

Minority interests                                                    5.1          3.0
                                                               ----------     --------
                                                                     43.0         36.2
                                                                   ======        =====

The press release was approved by the board on 18 March 2002.


For the year ended 31 December
                                                                           2001        2000

                                                           Notes             £m          £m
Cash flow from operating activities

Net cash inflow from continuing operating activities         4             72.7        55.9
                                                                       --------    --------
Dividends from associated undertakings                                      0.1         0.3

Returns on investments and servicing of finance

Interest received                                                           0.5         0.8

Interest paid                                                            (12.0)       (6.1)

Issue costs of new loans                                                      -       (1.5)

Dividends paid to minority interests                                          -       (0.5)
                                                                       --------    --------
Net cash outflow from returns on investments and                         (11.5)       (7.3)
servicing of finance
                                                                       --------   ---------

Taxation paid                                                            (11.6)      (15.1)
                                                                      ---------    --------
Capital expenditure and financial investment

Purchase of tangible fixed assets                                        (19.8)      (19.8)

Purchase of intangible fixed assets                                       (0.2)       (0.1)

Purchase of investments                                                   (0.1)       (0.2)

Sale of tangible fixed assets                                               1.0         0.8
                                                                       --------    --------
Net cash outflow from capital expenditure and financial                  (19.1)      (19.3)
                                                                      ---------    --------

Purchase of subsidiary undertakings                          4           (73.7)      (96.1)

Net cash acquired with subsidiary undertakings               4              0.6         1.4

Purchase of joint ventures and associates                                (12.1)           -
                                                                       --------    --------
Net cash outflow from acquisitions                                       (85.2)      (94.7)
                                                                       --------    --------
Dividends paid                                                            (8.5)       (6.5)
                                                                      ---------   ---------
Cash outflow before financing                                            (63.1)      (86.7)


Issue of ordinary share capital                                               -         0.4

Proceeds on exercise of share options                                       4.8           -

Increase in debt                                                           63.1        82.7
                                                                      ---------   ---------
Increase/(decrease) in cash in the year                      4              4.8       (3.6)
                                                                         ======      ======


For the year ended 31 December
                                                                      2001        2000

                                                                        £m          £m

Profit for the year                                                   15.9        20.5

Amounts arising on the exercise of share options                       0.5           -

Translation differences on foreign currency net investments
less translation differences on foreign currency loans taken 
out to fund those investments                                        (2.5)       (1.2)

Tax on gains/(losses) on foreign currency borrowings hedging         (0.5)         0.6
foreign investments
                                                                  --------    --------
Total recognised gains and losses relating to the year                13.4        19.9
                                                                    ======      ======


For the year ended 31 December
                                                                         2001     2000

                                                                           £m       £m

Profit for the year                                                      15.9     20.5

Dividends                                                               (9.0)    (7.8)
                                                                       ------   ------
                                                                          6.9     12.7
Amounts deducted in respect of shares issued to a qualifying
employee share ownership trust                                          (1.0)        -

Amounts arising on the exercise of share options                          0.5        -

Share of former associates                                              (0.4)        -

Other recognised gains and losses                                       (3.0)    (0.6)

New share capital issued (including share premium)                        1.7      1.4
                                                                       ------    -----
Net addition to shareholders' funds                                       4.7     13.5

Opening shareholders' funds                                              33.2     19.7
                                                                       ------   ------
Closing shareholders' funds                                              37.9     33.2
                                                                        =====    =====


1 Basis of accounting

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

2. Geographic analysis
                                                                 2001         2000

                               Continuing    Acquisitions       Total        Total

Turnover                               £m              £m          £m           £m

Sales by origin


- group                             379.9            25.3       405.2        346.7

- joint ventures                        -             1.9         1.9            -


- group                             122.7             6.0       128.7         95.6

- joint ventures                        -             2.0         2.0            -

Asia Pacific

- group                              39.0             2.2        41.2         37.0

- joint ventures                        -             3.7         3.7            -
                                ---------      ----------    --------      -------
Total                               541.6            41.1       582.7        479.3
                                ---------       ---------    --------      -------
- group                             541.6            33.5       575.1        479.3

- joint ventures                        -             7.6         7.6            -
                                   ======          ======      ======        =====

Sales by destination


- group                             360.7            24.8       385.5        326.6

- joint ventures                        -             1.9         1.9            -


- group                             141.5             6.2       147.7        116.1

- joint ventures                        -             2.0         2.0            -

Asia Pacific

- group                              39.4             2.5        41.9         36.6

- joint ventures                        -             3.7         3.7            -
                                 --------      ----------   ---------     --------
Total                               541.6            41.1       582.7        479.3
                                ---------      ----------  ----------    ---------
- group                             541.6            33.5       575.1        479.3

- joint ventures                        -             7.6         7.6            -
                                  =======         =======      ======        =====

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

2. Geographic analysis (continued)
                                                                 2001         2000

                               Continuing    Acquisitions       Total        Total

                                       £m              £m          £m           £m
Operating profit before goodwill


- group                              36.8             2.1        38.9         34.9

- joint ventures                        -             0.3         0.3            -


- group                              13.6             0.8        14.4          7.8

- joint ventures                        -             0.1         0.1            -

Asia Pacific

- group                               0.6             0.3         0.9          1.7

- joint ventures                        -                         0.6            -
                                ---------      ----------    --------     --------
Total                                51.0             4.2        55.2         44.4
                                ---------      ----------    --------     --------
- group                              51.0             3.2        54.2         44.4

- joint ventures                        -             1.0         1.0            -
                                   ======         =======       =====        =====

Profit on ordinary activities
before taxation


- group                              33.2             0.8        34.0         31.7

- joint ventures                        -             0.3         0.3            -


- group                               5.4             0.4         5.8          5.7

- joint ventures                        -               -           -            -

Asia Pacific

- group                               0.4             0.3         0.7          1.6

- joint ventures                        -             0.5         0.5            -
                                ---------      ----------  ----------    ---------
Operating profit                     39.0             2.3        41.3         39.0
                                ---------      ----------   ---------    ---------
- group                              39.0             1.5        40.5         39.0

- joint ventures                        -             0.8         0.8            -
                                   ======         =======      ======       ======

Income from interests in
associated undertakings                                             -          1.2

Interest receivable                                               0.6          0.9

Interest payable and other                                     (12.3)        (8.7)
finance charges
                                                            ---------    ---------
                                                                 29.6         32.4
                                                               ======       ======

  2 Geographic analysis (continued)
                                                               2001          2000

                                                              Total         Total

                                                                 £m            £m
Net assets


- group                                                        29.9          38.4

- joint ventures                                                0.5             -


- group                                                         9.7           8.8

- joint ventures                                                2.8             -

Asia Pacific

- group                                                       (0.5)         (0.1)

- joint ventures                                               13.8             -
                                                          ---------     ---------
Net operating assets                                           56.2          47.1
                                                          ---------    ----------
- group                                                        39.1          47.1

- joint ventures                                               17.1             -

Unallocated amounts:

Current and deferred taxation                                 (7.1)         (5.2)

Dividends payable                                             (6.1)         (5.7)
                                                         ----------    ----------
Net assets                                                     43.0          36.2
                                                            =======        ======

3. Earnings per share

Basic earnings per share have been calculated on the profit after taxation and
minority interests of £15.9m

(2000 £20.5m) and on 373,724,213 shares (2000 370,229,975), 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 FRS14, 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 383,693,389 (2000

Adjusted earnings per share before goodwill charges have been calculated on the
profit after taxation and minority interests of £29.8m (2000 £25.9m), which
excludes goodwill charges of £13.9m (2000 £5.4m) 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

The weighted average number of ordinary shares in issue during the year for the
purpose of these calculations is as follows:
                                                                    2001          2000
Weighted average number of shares (millions)

Share capital                                                      388.6         387.3

Shares held by ESOP                                                (3.3)         (3.6)

Shares held by EBT                                                (11.6)        (13.5)
                                                             -----------   -----------
Basic earnings per share denominator                               373.7         370.2

Dilutive effect of share options                                    10.0          17.3
                                                             -----------    ----------
Dilutive earnings per share denominator                            383.7         387.5
                                                                 =======       =======

4. Consolidated statement of cash flow

Reconciliation of operating profit to net cash inflow from continuing operating
                                                       2001         2000

                                                      Total        Total

                                                         £m           £m

Operating profit                                       40.5         39.0

Amortisation and impairment of                         14.4          5.7
intangible fixed assets

Depreciation of tangible fixed assets                  18.4         15.7

Decrease/(increase) in stocks and                       6.7        (3.2)

Decrease/(increase) in debtors                          6.0       (10.7)

(Decrease)/increase in creditors                     (14.6)          9.4

Increase in provisions                                  1.3            -
                                                 ----------   ----------
Net cash inflow from continuing                        72.7         55.9
operating activities
                                                     ======       ======

Acquisitions contributed £4.4m to the group's net operating cash flows.

Analysis of net debt

                                             At 1 Jan          Cash        Exchange
                                                 2001          Flow        movement

                                                   £m            £m              £m

Cash at bank and in hand                         19.5           4.2           (0.2)

Loans repayable within 1                       (17.0)         (1.2)             0.9

Loans repayable after more                    (153.9)        (62.1)             0.6
than 1 year

Obligations under finance                       (0.6)           0.2             0.1
                                                =====         =====           =====
                                              (152.0)        (58.9)             1.4
                                                =====          ====           =====

                                                           Non-cash       At 31 Dec
                                         Acquisitions     movements            2001

                                                   £m            £m              £m

Cash at bank and in hand                          0.6             -            24.1

Loans repayable within 1                            -         (0.3)          (17.6)

Loans repayable after more                          -             -         (215.4)
than 1 year

Obligations under finance                           -             -           (0.3)
                                              -------      --------        --------
                                                  0.6         (0.3)         (209.2)
                                                =====       =======         =======

Non-cash movements represents amortisation of arrangement fees.

Analysed in balance sheet                     At 1 Jan 2001          At 31 Dec 2001

                                                         £m                      £m

Cash at bank and in hand                               19.5                    24.1

Bank loans repayable within 1 year                   (17.0)                  (17.6)

Bank loans repayable after more than 1              (153.9)                 (215.4)

Finance leases repayable within 1 year                (0.3)                   (0.3)

Finance leases repayable after more                   (0.3)                       -
than 1 year
                                             --------------          --------------
                                                    (152.0)                 (209.2)
                                                  =========               =========

4. Consolidated statement of cash flow (continued)

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

Cash consideration

2000 acquisitions                                                              3.0

2001 acquisitions                                                             70.7

Net cash acquired                                                            (0.6)
Net cash outflow in respect of the purchase of subsidiary
undertakings                                                                  73.1

 5. Financial information

This 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 2001 and 31 December 2000 are an extract from the full financial
statements for those periods. The auditors' reports on those financial
statements were unqualified and did not contain a statement under Section 237(2)
or (3) of the Companies Act 1985. The statutory financial statements for the
year ended 31 December 2000 have been delivered to the Registrar.

Additional information

Subject to approval by shareholders at the annual general meeting on Tuesday 11
June, the final dividend will be paid on 8 July 2002 to shareholders on the 
register on 24 May 2002.

Copies of this release are available from the Investor Relations Manager, Taylor
Nelson Sofres plc, Westgate, London W5 1UA. Email: [email protected]

It can also be found in the Investor Centre of the group's website at

The group's annual report and accounts will be published in April and will be
available electronically from the Investor Centre of the website.

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

a d v e r t i s e m e n t