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Taylor Nelson Sofres (TNS)

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Friday 08 July, 2005

Taylor Nelson Sofres

Trading Statement

Taylor Nelson Sofres PLC
08 July 2005

For release at 07.00                                                8 July 2005

                            Taylor Nelson Sofres plc

                                 Trading update

Taylor Nelson Sofres plc (TNS), a world leader in market information, issues the
following trading update ahead of its interim results announcement on 5
September 2005.

  • H1 revenue performance:  good growth ahead of the market across most
    regions but weaker than anticipated performance in UK and US custom research

  • Group full year underlying revenue growth now expected to be broadly in
    line with market rates - weighted more heavily to second half

  • Group anticipates achieving margin improvement of around 25 to 50 basis
    for 2005



The group continues to expect that the global market for market information will
grow by around 4 per cent in 2005.  Demand for syndicated services continues to
increase steadily. The market for custom research remains more dependent on
economic conditions and is variable by both region and sector, with noticeable
pressure in the FMCG area.


Europe:  The group expects to report a strong first half performance in France
and Rest of Europe, where underlying growth is believed to be ahead of the
market.  The UK will show a decline in the first half and is expected to be
broadly flat for the full year.  For the year as a whole, the region should grow
just ahead of the market.

Americas:  As previously indicated, the US experienced a difficult start to the
year, with the Technology sector, in particular, being affected by a reduction
in expenditure by certain major clients.  The region will see a decline in the
first half but is expected to show improvement through the rest of the year.

Asia Pacific:  With ongoing increased levels of activity, this region will show
strong growth in the first half, with further improvement through the rest of
the year.

Sectors:  Media and Social & Polling should maintain good growth through the
year.  Healthcare grew more slowly in the first half, Technology was broadly
flat and Consumer saw a small decline but performance in these sectors is
expected to improve for the full year.
The markets for Business Services continue to be more difficult and this sector
is expected to report a decline this year.

Operating margin

The group continues to focus on margin improvement.  Despite pricing pressure in
certain areas of the market and a significant investment programme, it
anticipates achieving around 25 to 50 basis points increase in operating margin
for the full year.  This improvement will be weighted to the second half, in
line with underlying revenue growth.


Chief Executive, Mike Kirkham, said, "Our syndicated research services continue
to perform well but we have seen more variability in custom research.  The
result is that in most regions underlying growth was ahead of the market in the
first half and we expect this good performance to be maintained.  Our unique
positioning in Asia Pacific, in particular, continues to drive excellent growth.
  First half revenues in the UK and US custom have been disappointing, but
actions are being taken in these areas.  Assuming economic conditions remain
unchanged, we anticipate improved performance for the rest of the year, driven
by our focus on Global Accounts and increased recognition in the market place of
the value we can add to clients through our Areas of Expertise.

"TNS continues to focus on both revenue and margin improvement and on
implementing our strategy to achieve sustainable competitive advantage in the
market information industry."

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: [email protected]


About TNS

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, motivational research, 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
            The company news service from the London Stock Exchange

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