Information  X 
Enter a valid email address

Creston PLC (CRE)

  Print   

Thursday 28 November, 2013

Creston PLC

Half Yearly Report

RNS Number : 1248U
Creston PLC
28 November 2013
 



28 November 2013

 

Creston plc

('Creston' or the 'Group')

 

Half year results for the six months ended 30 September 2013

 

Creston plc (LSE: CRE), the digitally focused insight and communications group, today announces its half year results for the six months to 30 September 2013 ('the Period').

 

Group Financial Highlights

 

             ·     Revenue of £35.7 million (H1 2013: £37.2 million)

             ·     Headline1 EBITDA2 of £4.6 million (H1 2013: £5.4 million)

             ·     Headline PBIT3 of £3.6 million (H1 2013: £4.4 million)

             ·     Headline DEPS4 of 4.35 pence (H1 2013: 7.44 pence)

             ·     Half year dividend per share increased by 20 per cent to 1.20 pence (H1 2013: 1.00 pence) per share

             ·     Total cash5 of £0.1 million (H1 2013: Total debt5 of £4.9 million)

 

Corporate and Operational Highlights

 

            ·     Strong new business performance:

Net new business wins with annualised revenue of £7.9 million (H1 2013: £3.1 million)

New clients include Bentley, HSBC, Novartis, Reckitt Benckiser and Sony PlayStation

Performance continuing - further two major contracts won post Period

 

            ·     Progress made in Group:

Digital and online revenue growth of 11 per cent, representing 52 per cent of Group revenue (H1 2013: 45 per cent)

'Better Together' strategy supported by completion of co-location strategy - from over 20 property leases to eight

Insight division recovery with growth and a return to an 18 per cent PBIT margin

Health division strengthened  with the launch of conflict PR agency Liberation Communications and start-up brand and creative consultancy Loooped

 

·     Positioned to capitalise on first half new business wins and improvement in prospects for the industry

 

Commenting on the results, Don Elgie, Group Chief Executive of Creston plc, said:

 

"Revenue and profits for the six months are lower than previously anticipated, primarily as a result of volatility related to the phasing of some client work across the Group and the exceptional amount of time incurred in new business activity. It has been a successful first half for the Group in many other respects, particularly in terms of net new business wins, having secured an annualised £7.9 million of work for new clients compared to £3.1 million in the prior year period. These wins will start to benefit the Group in the second half of the year and will help compensate for the volatility in some of our clients' activity. As in previous periods we anticipate increased revenues in the second half of the year, with full year revenues being broadly flat year-on-year.

 

"We also completed the co-location of our UK businesses in the period and, whilst this has increased our operating costs, we are already seeing significant benefits in terms of client referrals and successful joint pitches.

 

"The Group is therefore well-positioned for future revenue and profit growth and our confidence is further underpinned by signs of improvement in the prospects for our industry, such as the latest IPA Bellwether survey showing the fastest growth rates in advertising spending recorded. The work we have done in recent years to position Creston in the fast growing areas of communications, such as digital, will see us well placed to take advantage as volatility reduces and client budgets are under less pressure."

 

 

 

Group Financial Results

 


Headline results

Reported results


H1 2014

£ million

H1 2013

£ million

H1 2014

£ million

H1 2013

£ million

Revenue

35.7

37.2

35.7

37.2

PBIT

3.6

4.4

1.7

7.9

DEPS (pence)

4.35

7.44

1.82

13.66

Dividend per share (pence)

1.20

1.00

1.20

1.00

Operating margin (%)

10%

12%

5%

21%

 

 

 

 

 

 

1. Headline results reflect the underlying performance of the Group and excludes property related costs, acquisition, start-up and restructuring related costs, movement in fair value of deferred consideration, amortisation of acquired intangibles, deemed remuneration charges and notional finance costs. A full reconciliation is presented in note 4 to this interim announcement.

2. Earnings before finance costs, finance income, taxation, depreciation and amortisation (EBITDA).

3. Profit before finance income, finance costs and taxation (PBIT).

4. Diluted earnings per share (DEPS).

5. Total cash/debt is cash less borrowings together with the provision for deferred consideration.

 

 

 

There will be a presentation for analysts today at 09.30 at Creston House, 10 Great Pulteney Street, London, W1F 9NB.

 

 

 

For further information on the Group's half year results or about the analyst meeting please contact:

 

Creston plc

+ 44 (0)20 7930 9757

Don Elgie, Group Chief Executive

 

Barrie Brien, COO/CFO

 

 

 

Bell Pottinger

+44 (0)20 7861 3232

David Rydell/Elly Williamson/

Malika Shermatova

 

 

 

About Creston plc

Creston plc (LSE: CRE) is a digitally focused insight and communications group. The Group delivers a range of marketing services, including advertising, brand consultancy, CRM, digital and direct marketing, health communications, local marketing, market research, PR and social media marketing to a broad spectrum of blue-chip global clients. Our insight companies give us a real edge, providing the analytic intelligence to enable us to deliver original thinking that engages audiences, invites participation and influences future trends. www.creston.com

 

 

 

 

Chief Executive's Statement

 

Group Performance

 

During the first six months of the current financial year, Group revenue was below expectations at £35.7 million (H1 2013: £37.2 million), primarily as a result of volatility related to the phasing of some client work across the Group and the exceptional amount of time incurred in new business activity. The high level of new business pitching activity has led to net new business wins with annualised revenue of £7.9 million - over twice as much compared with the prior year period - and includes material new client contracts from HSBC and Reckitt Benckiser. These wins, added to the signs of improvement in the UK advertising spend, will have a positive impact on the second half and beyond.

 

During the first six months of the current financial year, our UK-based companies have performed well, with revenue growing by 3 per cent and Headline PBIT by 19 per cent compared with H1 2013. As expected, our US-based agency, the Cooney Waters Group, declined in the Period and has made good progress in replacing its previously announced lost client. Through new client wins it is positioned to have a much stronger second half and beyond, similar to the UK group.

 

The reduced US revenue and profits, plus the increased property costs of our new offices resulting from the completion of our long term co-location strategy have given rise to the lower financial performance compared to the prior year Period, with Group Headline EBITDA of £4.6 million (H1 2013: £5.4 million), Group Headline PBIT of £3.6 million (H1 2013: £4.4 million) and Group Headline PBT of £3.6 million (H1 2013: £4.4 million). Headline DEPS decreased to 4.35 pence per share (H1 2013: 7.44 pence) and a decline was expected due to the tax credit taken in the same prior year period (see note 6 to this interim announcement).

 

Reported PBT was £1.6 million (H1 2013: £7.9 million), with the difference between Headline and Reported PBT largely due to the one-off property related costs resulting from the co-location of our London-based companies. The prior year included the revaluation credit of the estimated deferred consideration (see note 4 for reconciliation from Headline to Reported).

 

Digital and online work is central to our client offer with growth in revenues during the Period of 11 per cent, representing 52 per cent (2013: 45 per cent) of Group revenue during the Period. The target had been for our digital and online revenue to be greater than half of the Group's revenue in FY15 and to exceed this target by H1 FY14 demonstrates that the Group's transition continues apace. Innovative campaigns and high-profile reactive social media work are helping to position Creston as one of the leaders in the provision of integrated digital marketing solutions.

 

We remain committed to strengthening our client offer and investing for growth. The launch of a small healthcare public relations company, Liberation Communications, was completed during the Period for the purpose of servicing conflict business. We have also launched a health brand and creative consultancy post Period, Loooped, after attracting two senior industry figures from a competitor group.

 

Over half of the Group has relocated into our new flagship London office in the Period as the Group's long term co-location strategy was concluded. This increased our operating costs in H1 and will add approximately £0.8 million in FY14 but this is an important investment in order to work more collaboratively in the future, providing our existing and new clients a continually innovative service. The London-based companies, which completed their co-location by the end of September, have already referred three client opportunities to each other and the close working relationship under our Better Together ethos has accelerated.

 

As previously reported, there have been associated one-off costs with the London co-location, such as double rent and rates and onerous lease provisions and in the Period there has been a related charge of £1.4 million added back to our Headline figures in order to show the underlying operating performance. This charge is a mixture of cash and non-cash items and is funded by the £7.2 million received in the previous financial year for the reverse premium and contribution to the dilapidations obligation (see note 13 for further detail). There will be no further material one-off charges associated with the co-location.

 

 

Business Review

 

The respective revenue, Headline PBIT and percentage contributions per division are as follows:

 

H1 2014

Revenue

Headline PBIT

 

£ million

% of Group

£ million

% of Group (excluding Head Office costs)

Communications

19.9

56%

2.5

49%

Health

9.7

27%

1.5

29%

Insight

6.1

17%

1.1

22%

 

 

Communications

 

 

H1 2014

£ million

H1 2013

£ million

Revenue

19.9

20.7

Contribution to Group revenue (%)

56%

55%

Headline PBIT

2.5

3.1

Reported PBIT

2.4

3.1

Headline PBIT margin (%)

12%

15%

 

The Group's Communications division saw a busy start to the financial year, with the very high level of new business activity pointing to a second half that should be stronger in revenue and Headline PBIT margin than both H2 2013 and H1 2014. The revenue decline to £19.9 million (H1 2013: £20.7 million) reflects the phasing and volatility in some of our clients' budgets and workflow, alongside the significant unbillable time invested in new business pitching. We continue to manage the cost base very closely and, as expected, the increased property costs have impacted profitability. As a result of this, plus the lower revenue, Headline PBIT declined to £2.5 million (H1 2013: £3.1 million).

 

The Communications division has been working hard to benefit from its position on the Government Procurement Services roster, requiring a large time commitment to pitch for campaigns which are initially relatively small but we believe should grow in size throughout the life of the contract. Whilst it has impacted margins in the short term, this resource investment is important since it is a three to five-year contract and the reduction in the number of marketing agencies utilised by the Government suggests significant new business potential over the life of the contract. To date, the Communications division has won four campaigns related to child benefits, benefit fraud, fire safety and child maintenance. We have a successful track record of working for public sector clients and as the campaigns begin to grow, so should the associated revenue.

 

In addition to the Government Procurement Services contracts, other material and exciting new client wins in the first half of the year for the Communications division include Bentley, HSBC, Reckitt Benckiser and Sony PlayStation. These new accounts have long term growth potential, similar to existing long term clients such as Diageo, Unilever and Sainsbury's which we have continued to grow from winning additional brands or being added to additional rosters to provide new services, such as the digital marketing roster for Sainsbury's.

 

Following the new client and additional brand wins, a stronger second half will also be supported by the growing international reach of the division. Clients such as Diageo, Danone, Infiniti and Unilever have helped to increase the division's international revenue to 22 per cent (H1 2013: 20 per cent). This growth reflects clients' willingness to commission more multi-country digital marketing from one central hub location.

 

A number of the companies within the division have received recognition for their client offer during the Period. NBG has been recognised by PR Week as a Top 10 Tech PR Agency, a Top 15 Consumer PR Agency and a Top 10 Digital PR Agency. TMW was ranked at 21 in Econsultancy's first Top 100 Digital Agencies listings. TMW has also received a lot of attention for its 'always on' social media offer following high profile work for Reckitt Benckiser which was highlighted by Twitter as an example of how to use social media effectively. The significant amount of media coverage of this work is reflective of the increasing importance of digital expertise to clients.

 

 

 

Health

 

 

H1 2014

£ million

H1 2013

£ million

Revenue

9.7

11.0

Contribution to Group revenue (%)

27%

30%

Headline PBIT

1.5

2.6

Reported PBIT

1.2

6.1

Headline PBIT margin (%)

15%

24%

 

As expected, revenue for the Health division declined during the Period, primarily driven by the previously reported loss of the US Sanofi business in Q4 2013. This has been partly offset by the continued growth of the digital healthcare agency DJM Digital Solutions ("DJM"), acquired in the second half of last financial year. The division's revenue declined to £9.7 million (H1 2013: £11.0 million) and Headline PBIT to £1.5 million (H1 2013: £2.6 million); and due to the US group performance, like-for-like revenue declined by 21 per cent and Headline PBIT margin declined to 15 per cent. The UK Health companies have performed well and grown revenue by 3 per cent against the same prior year period. The difference between the Reported PBIT versus the prior year is due to the revaluation credit of the estimated deferred consideration taken in the same prior year period.

 

As previously reported, the lost Sanofi revenue will take time to replace and will impact the reported financials in FY14 but good progress has been made to date with new business wins including Alere, TA Sciences, Novartis, Center to Advance Palliative Care and further Gilead brands. Despite the decline in its financial performance, the Cooney/Waters Group remains a profitable top five US healthcare PR group and these recent wins demonstrate the continued strength of the offer. DJM continues to bed-down well in the division, winning business through joint pitches, introductions from PAN, from RDC and independently. The launch of DJM's New York presence during the Period will help support the growing demand for digital expertise and innovation across the division's US client base, already contributing to some of the new business successes.

 

The wins in the US are helping to replace last year's lost client and to position the division for higher revenue in H2, with an improved Headline PBIT margin. With this improved financial performance, we have continued to broaden our client service offer. In the UK, there had been a growing number of opportunities that conflicted with existing client business and, consequently, the division was unable to pursue them. To resolve this conflict, the launch of the small specialist health agency Liberation Communications was completed during the Period. This demonstrates our commitment to building and evolving the division, as does the recent launch of a health and healthcare brand and creative consultancy called Loooped, which will provide a strong strategic and creative resource within the division. The two founding directors of Loooped have joined Creston from a competitor, drawn by the prospect of working within an entrepreneurial group committed to growing its health and healthcare offer.

 

The Health division continues to demonstrate the relevance of our Better Together proposition among sector clients, with cross-agency wins during the Period including Novartis, World Health Organisation and Otsuka/Lundbeck. Furthermore, contracts for the United Nations Water Supply and Sanitation Collaborative Council and GAVI Alliance have been won by our US Health companies post Period.

 

 

 

Insight

 

 

H1 2014

£ million

H1 2013

£ million

Revenue

6.1

5.5

Contribution to Group revenue (%)

17%

15%

Headline PBIT

1.1

0.04

Reported PBIT

0.4

0.04

Headline PBIT margin (%)

18%

1%

 

The Insight division has delivered a strong first half performance with revenue rising by 10 per cent to £6.1 million (H1 2013: £5.5 million) and a significant Headline PBIT rise to £1.1 million (H1 2013: £0.04 million). This is a good improvement for the division, with the revenue growth and the realignment of the cost base resulting in a much improved margin of 18 per cent.

 

Marketing Sciences continues to show very strong growth on the back of a major retail client, coupled with ICM continuing its recovery. Innovative research and the early adoption of digital data collection technologies have certainly had a positive impact, with Marketing Sciences exceeding one million tablet-based surveys during the Period and ICM winning a Digital Impact Award for its work on the MySainsbury's colleague community. The division was also involved in a high-profile research project around social media return on investment alongside the IAB (Internet Advertising Bureau UK).

 

The market research industry has been challenging, with technology accelerating the change and needs of clients, consequently impacting the size of surveys and the associated budgets. Since the improvement in the operations of the division and the subsequent increased profitability, new business development has been a key focus, resulting in the broadening of the client base. New clients during the Period include Mobile By Sainsbury's and HM Passport Office. Although profitable in H1 2013 (£0.1 million), the challenging market place has sadly impacted Vitaris, our small healthcare research consultancy, which was closed during the Period. Its lack of critical mass in the highly competitive area of healthcare research meant that it has not performed as budgeted. As such, the offer has been closed and all associated closure costs of £0.3 million have been added back to the Headline figures (see note 5 for further detail).

 

The recent MRS Quarterly Trends Analysis reports on the best quarterly growth since December 2008 and improved confidence in the sector, something which we look forward to benefitting from.

 

Balance sheet and cash flow

 

As at 30 September 2013, the Group was in a net cash position of £1.8 million (31 March 2013: £11.2 million). Including deferred consideration liabilities of £1.7 million (£0.3 million for the Cooney/Waters Group and £1.4 million for DJM), the Group was debt free with a total cash position of £0.1 million (31 March 2013: total cash of £9.5 million).

 

During the Period the adjusted operating cash outflow was £0.6m (H1 2013: £1.7 million inflow). The cash conversion ratio of adjusted operating cash flow to Headline EBITDA was negative 14 per cent (H1 2013: positive 32 per cent). The cash outflow in the Period has reversed the negative working capital position of £1.3 million at the year end to a more normalised positive working capital position of £2.8 million as at 30 September 2013 (30 September 2012: £3.4 million). Management continues to place significant emphasis on managing working capital effectively and this has resulted in a five-year cumulative cash conversion of 100 per cent.

 

Dividend

 

In light of the Group's history of strong cash generation and low gearing, it is the Board's intention to maintain a progressive dividend policy. Reflecting this, the Board has declared a half year dividend of 1.20 pence (H1 2013: 1.00 pence) per share to be paid on 10 January 2014 to shareholders registered at 6 December 2013. This represents a 20 per cent increase on the prior year. However, this growth rate is higher than the expectation for the full year dividend as the Board looks to move towards a one-third/two-thirds allocation between the half year/final dividend payment respectively.

 

Outlook

 

Recent industry data shows improved prospects for the marketing services sector and the work we have done in recent years to position Creston in the fast growing areas of communications, such as digital, sees us well-placed to benefit from this forecast growth.

 

We continue to see good new business and client referral opportunities across the Group and this, combined with the business won to date, will result in a stronger H2 and beyond. As in previous periods we anticipate increased revenues in the second half of the year, with full year revenues being broadly flat year-on-year. As previously advised, full year operating costs will reflect the increased property costs of the UK co-location strategy.

 

The operational progress that has been made across the group and our continuing strength in the field of digital marketing, which has contributed significantly to our recent new business success, gives us confidence that we are well-positioned for future revenue and profits growth.

 

 

Don Elgie

Group Chief Executive 



 

UNAUDITED CONSOLIDATED INCOME STATEMENT

for the six months ended 30 September 2013

 


Note

Six months ended 30 September 2013

 

 

£'000

Six months ended 30 September 2012

 

 

£'000

Audited

Year ended

31 March

2013

 

£'000

Turnover (billings)


48,547

52,865

107,088

 

Revenue

 

5

 

35,677

 

37,165

 

75,189

Operating costs


(32,043)

(32,736)

(65,024)






Headline profit before finance income, finance costs and taxation

4

3,634

4,429

10,165

Headline items

4

(1,912)

3,450

841

Profit before finance income, finance costs and taxation

4

1,722

7,879

11,006

Finance costs


(102)

(12)

-

 

Profit before taxation

 

4

 

1,620

 

7,867

 

11,006

Taxation

6

(472)

392

(1,212)

Profit for the period

4

1,148

8,259

9,794






Attributable to:





Equity holders of the parent


1,100

8,259

9,736

Non-controlling interest


48

-

58



1,148

8,259

9,794











Basic and diluted earnings per share (pence):

7

1.82

13.66

16.10

 

 

 

 



 

UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 September 2013



Six months ended 30 September 2013

 

 

£'000

Six months ended 30 September 2012

 

 

£'000

Audited

Year ended 31 March 2013

 

£'000






Profit for the period


1,148

8,259

9,794






Other comprehensive (expense)/income:










Exchange differences on translation of foreign operations


(677)

(185)

450






Other comprehensive (expense)/income for the period, net of tax


(677)

(185)

450

Total comprehensive income for the period


471

8,074

10,244






Attributable to:





Equity holders of the parent


423

8,074

10,186

Non-controlling interest


48

-

58



471

8,074

10,244

 



 

UNAUDITED CONSOLIDATED BALANCE SHEET

as at 30 September 2013

 


Note

As at

 30 September

2013

 

£'000

As at

 30 September 2012

 

£'000

Audited as at

31 March

2013

 

£'000

Non-current assets





Intangible assets





         Goodwill

9

104,195

106,850

105,022

         Other

9

1,267

1,388

1,359

Property, plant and equipment

9

4,709

3,721

4,442

Deferred tax assets


652

754

582



110,823

112,713

111,405






Current assets





Inventories and work in progress


945

1,088

1,070

Trade and other receivables


25,634

26,196

25,373

Cash and cash equivalents

12

2,780

1,189

11,208



29,359

28,473

37,651






Current liabilities





Trade and other payables


(23,802)

(23,903)

(28,647)

Corporation tax payable


(137)

(1,047)

(1,549)

Obligations under finance leases

12

-

(2)

-

12

(1,000)

(3,210)

(10)

Derivative financial instrument

11

-

(40)

-



(24,939)

(28,202)

(30,206)






Net current assets


4,420

271

7,445






Total assets less current liabilities


115,243

112,984

118,850






Non-current liabilities





Trade and other payables


(2,971)

-

(5,160)

Provision for other liabilities and charges

10

(1,692)

(2,849)

(1,714)

Deferred tax liabilities


(489)

(118)

(368)



(5,152)

(2,967)

(7,242)






Net assets


110,091

110,017

111,608






Equity





Called up share capital


6,134

6,134

6,134

Share premium account


35,943

35,943

35,943

Own shares


(1,098)

(656)

(656)

Shares to be issued


867

1,141

1,167

Other reserves


30,822

30,822

30,822

Foreign currency translation reserve


(400)

(358)

277

Retained earnings


37,717

36,991

37,863

Equity attributable to equity holders of parent


109,985

110,017

111,550

Non-controlling interest


106

-

58

Total equity


110,091

110,017

111,608

           



 

UNAUDITED STATEMENT OF CHANGES IN EQUITY

Six months ended 30 September 2013

 

 


Called up share capital

Share premium

Own shares

Shares to be issued

Other reserves

Foreign currency translation reserve

Retained earnings

Total attributable to equity holders of parent

Non-controlling interest

 

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Changes in equity for the period











At 1 April 2013

6,134

35,943

(656)

1,167

30,822

277

37,863

111,550

58

111,608

Total comprehensive income for the period

-

-

-

-

-

(677)

1,100

423

48

471

Credit for share-based incentive schemes

-

-

-

64

-

-

-

64

-

64

Transfer between reserves in respect of lapsed share options

-

-

-

(364)

-

-

364

-

-

-

Purchase of treasury shares

-

-

(442)

-

-

-

-

(442)

-

(442)

Dividends (note 8)

-

-

-

-

-

-

(1,610)

(1,610)

-

(1,610)

At 30 September 2013

6,134

35,943

(1,098)

867

30,822

(400)

37,717

109,985

106

110,091

 

 

 


Called up share capital

Share premium

Own shares

Shares to be issued

Other reserves

Foreign currency translation reserve

Retained earnings

Total attributable to equity holders of parent

Non-controlling interest

 

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Changes in equity for the period











At 1 April 2012

6,134

35,943

(656)

1,079

30,822

(173)

30,346

103,495

-

103,495

Total comprehensive income for the period

-

-

-

-

-

(185)

8,259

8,074

-

8,074

Credit for share-based incentive schemes

-

-

-

62

-

-

-

62

-

62

Dividends (note 8)

-

-

-

-

-

-

(1,614)

(1,614)

-

(1,614)

At 30 September 2012

6,134

35,943

(656)

1,141

30,822

(358)

36,991

110,017

-

110,017

 

 

 


Called up share capital

Share premium

Own shares

Shares to be issued

Other reserves

Foreign currency translation reserve

Retained earnings

Total attributable to equity holders of parent

Non-controlling interest

 

Total equity


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

Changes in equity for the year











At 1 April 2012

6,134

35,943

(656)

1,079

30,822

(173)

30,346

103,495

-

103,495

Total comprehensive income for the period

 

-

 

-

 

-

 

-

 

-

 

450

 

9,736

 

10,186

 

58

 

10,244

Credit for share-based incentive schemes

-

-

-

88

-

-

-

88

-

88

Dividends (note 8)

-

-

-

-

-

-

(2,219)

(2,219)

-

(2,219)

 

At 31 March 2013

6,134

35,943

(656)

1,167

30,822

277

37,863

111,550

58

111,608



 

UNAUDITED CONSOLIDATED STATEMENT OF CASHFLOWS
for the six months ended 30 September 2013


Note

Six months ended 30 September 2013

£'000

Six months ended 30 September 2012

£'000

Year ended

31 March

2013

£'000






Profit for the period

1,148

8,259

9,794

Taxation

472

(392)

1,212

Profit before taxation

1,620

7,867

11,006

Finance costs

102

12

-

Profit before finance income, finance costs and taxation

1,722

7,879

11,006

Depreciation of property, plant and equipment

828

793

1,615

Amortisation of intangible assets

176

135

263

Share based payments charge

64

62

88

Charge/(credit) for future acquisition payments to employees deemed as remuneration

155

150

(299)

Movement in fair value of deferred consideration

(30)

(4,032)

(6,799)

Impairment of goodwill

-

-

5,161

Loss on disposal of property, plant and equipment

63

6

15

Loss on disposal of intangible assets

-

-

13

Decrease in inventories and work in progress

123

114

149

(Increase)/decrease in trade and other receivables

(250)

(274)

1,002

(Decrease)/increase in trade and other payables

(3,485)

(3,139)

48

Adjusted operating cash (outflow)/inflow

(634)

1,694

12,262

(Outflow)/inflow of proceeds on operating lease

13

(3,688)

-

6,529

Operating cash (outflow)/inflow


(4,322)

1,694

18,791

Tax paid


(1,803)

(196)

(926)

Net cash (outflow)/inflow from operating activities


(6,125)

1,498

17,865






Investing activities





Purchase of subsidiary undertakings


-

(491)

(1,648)

Net cash acquired with subsidiaries


-

-

413

Purchase of property, plant and equipment

9

(1,205)

(1,150)

(2,598)

Proceeds from sale of property, plant and equipment


-

6

9

Purchase of intangible assets

9

(110)

(50)

(143)

Net cash outflow from investing activities


(1,315)

(1,685)

(3,967)






Financing activities





Finance costs


(77)

(70)

(176)

Net increase in borrowings


990

1,000

-

Dividends paid


(1,610)

(1,614)

(2,219)

Capital element of finance lease payments


-

-

(2)

Purchase of treasury shares


(442)

-

-

Net cash outflow from financing activities


(1,139)

(684)

(2,397)

 

(Decrease)/increase in cash and cash equivalents


 

(8,579)

 

(871)

 

11,501






Cash and cash equivalents at start of period


11,208

(80)

(80)

Effect of foreign exchange rates


151

(60)

(213)

Cash and cash equivalents at end of period

12

2,780

(1,011)

11,208






 

NOTES TO THE HALF YEAR REPORT
for the six months ended 30 September 2013

1.         Presentation of financial information

The financial information contained in this half year report does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006.

Statutory accounts for the year ended 31 March 2013 were approved by the Board of Directors on 3 July 2013 and delivered to the Registrar of Companies.  The report of the auditors by PricewaterhouseCoopers LLP on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 448 of the Companies Act 2006.

The half year report has not been audited or reviewed by the Group's auditors.

2.         Basis of Preparation

The half year report of Creston plc for the six months ended 30 September 2013 has been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34, "Interim financial reporting" as adopted by the European Union.

The accounting policies applied in the preparation of the annual financial statements are based on the European Union adopted International Financial Reporting Standards (IFRS) and IFRIC interpretations that are applicable at this time.

The condensed half year consolidated financial information should be read in conjunction with the annual financial statements for the year ended 31 March 2013 which have been prepared in accordance with IFRS as adopted by the European Union.

3.         Accounting policies

The half year consolidated financial statements of Creston plc for the six months ended 30 September 2013 have been prepared in accordance with the accounting policies contained in the Group's Annual Report and Accounts 2013 and the policies as described in note 2 above.

The following standards, amendments and interpretations are relevant to the Group, but not yet effective and have not been early adopted by the Group:

IFRS 10, 'Consolidated financial statements' (effective for periods beginning on or after 1 January 2014).  This standard builds on existing principles by identifying the concept of control as the determining factor in whether an entity should be included within the consolidated financial statements.  The standard provides additional guidance to assist in determining control where this is difficult to assess.  This new standard might impact the entities that a group consolidates as its subsidiaries.

Amendment to IAS 32, 'Financial instruments: Presentation' (effective for periods beginning on or after 1 January 2014).  This amendment updates the application guidance in IAS 32, 'Financial instruments: Presentation', to clarify some of the requirements for offsetting financial assets and financial liabilities on the balance sheet.

IFRS 9 'Financial instruments' (effective for periods beginning on or after 1 January 2015).  This standard on classification and measurement of financial assets and financial liabilities will replace IAS 39, 'Financial instruments: Recognition and measurement'.  IFRS 9 has two measurement categories: amortised cost and fair value.  All equity instruments are measured at fair value.  A debt instrument is measured at amortised cost only if the entity is holding it to collect contractual cash flows and the cash flows represent principal and interest.  For liabilities, the standard retains most of the IAS 39 requirements.

4.         Reconciliation of Headline profit to Reported profit

In order to enable a better understanding of the underlying trading of the Group, the Board refers to Headline PBIT, PBT and PAT which eliminate certain amounts from the Reported figures.  These break down into two parts:

(i)         Certain accounting policies which have a material impact and introduce volatility to the Reported figures. These are acquisition related costs, amortisation of acquired intangible assets, movement in the fair value of deferred consideration, future acquisition payments to employees deemed as remuneration and notional finance costs on future deferred consideration. These charges will cease once all the relevant earn-out and related obligations have been settled; and

(ii)         exceptional non-recurring operating charges, which consist of start-up and restructuring related costs, property related costs and the impairment of goodwill.

 

Six months ended 30 September 2013


PBIT

£'000

PBT

£'000

PAT

£'000

Headline

3,634

3,559

2,677

Property related costs

(1,422)

(1,422)

(1,422)

Acquisition, start-up and restructuring related costs

(305)

(305)

(305)

Movement in fair value of deferred consideration

30

30

30

Amortisation of acquired intangibles

(60)

(60)

(60)

Future acquisition payments to employees deemed as remuneration

(155)

(155)

(155)

Notional finance cost on future deferred consideration

-

(27)

(27)

Deferred tax charge on amortisation of goodwill

-

-

(121)

Taxation impact

-

-

531

Reported

1,722

1,620

1,148





Headline Basic EPS (pence)



4.36

Headline Diluted EPS (pence)



4.35

Reported Basic and Diluted EPS (pence)



1.82





Six months ended 30 September 2012


PBIT

£'000

PBT

£'000

PAT

£'000

Headline

4,429

4,354

4,499

Property related costs

(432)

(432)

(432)

Movement in fair value of deferred consideration

4,032

4,032

4,032

Future acquisition payments to employees deemed as remuneration

(150)

(150)

(150)

Notional finance credit on future deferred consideration

-

63

63

Taxation impact

-

-

247

Reported

7,879

7,867

8,259





Headline Basic and Diluted EPS (pence)



7.44

Reported Basic and Diluted EPS (pence)



13.66





 

 

 

 

 

 

 




Year ended 31 March 2013





PBIT

£'000

PBT

£'000

PAT

£'000

Headline

10,165

10,011

8,924

Property related costs

(944)

(944)

(944)

Acquisition related costs

(152)

(152)

(152)

Movement in fair value of deferred consideration

6,799

6,799

6,799

Impairment of goodwill

(5,161)

(5,161)

(5,161)

Credit for future acquisition payments to employees deemed as remuneration

299

299

299

Notional finance credit on future deferred consideration

-

154

154

Deferred tax charge on amortisation of goodwill

-

-

(268)

Taxation impact

-

-

143

Reported

11,006

11,006

9,794





Headline Basic and Diluted EPS (pence)



14.66

Reported Basic and Diluted EPS (pence)



16.10

 

5.         Segmental analysis

The chief operating decision-maker has been identified as the Executive Board of Directors, which makes the strategic decisions. The Executive Board has determined the operating segments in a manner consistent with the internal reporting provided to the Executive Board. The Executive Board considers the business from a divisional perspective, these being Communications, Health and Insight.

The principal activities of the three divisions are as follows:

Communications
The Communications division offers clients an integrated approach to their marketing and communication strategy, offering a range of services which include advertising, brand strategy, channel marketing, customer relationship marketing (CRM), digital marketing, direct marketing, local marketing, social media marketing and public relations.

Health
The Health division provides an integrated communications solution to the healthcare and pharmaceutical sector and offers services which include advertising, advocacy, digital and direct marketing, public relations, issues and reputation management and medical education.

Insight
The Insight division performs a complete range of market research services on behalf of its clients, through both qualitative and quantitative means, using face-to-face, telephone and online data collection techniques.

The Executive Board assesses the performance of the operating segments based on a measure of revenue and Headline PBIT.  This measurement basis excludes the effects of certain amounts from the operating segments, such as amortisation of acquired intangible assets, acquisition, start-up and restructuring related costs, property related costs, movement in fair value of deferred consideration, impairment of goodwill, future acquisition payments to employees deemed as remuneration and notional finance costs on deferred consideration.

Accounting policies are consistent across the reportable segments.

All significant assets and liabilities are located within the UK and the USA. The Executive Board does not review the assets and liabilities of the Group on a divisional basis and therefore has chosen to adopt the amendments to IFRS 8 which permit not segmenting the assets and liabilities of the Group.

Other information provided to the Board of Directors is measured in a manner consistent with that in the Financial Statements.

 

 

Divisional segmentation

Turnover, revenue, Headline and Reported profit before finance income and finance costs (PBIT), and profit before tax (PBT) attributable to Group activities are shown below:


Communications

Health

Insight

Head Office

Group

Six months ended

30 September 2013

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

Turnover (billings)

26,592

10,885

11,070

-

48,547

Revenue

19,944

9,667

6,066

-

35,677

Headline PBIT

2,468

1,461

1,114

(1,409)

3,634

Property related costs

(76)

-

(440)

(906)

(1,422)

Acquisition, start up and restructuring related costs

-

(29)

(276)

-

(305)

Movement in fair value of deferred consideration

-

30

-

-

30

Amortisation of acquired intangibles

-

(60)

-

-

(60)

Future acquisition payments to employees deemed as remuneration

-

(155)

-

-

(155)

Reported PBIT

2,392

1,247

398

(2,315)

1,722

Finance costs

-

-

-

(75)

(75)

Notional finance cost on future deferred consideration

-

(27)

-

-

(27)

Profit before taxation

2,392

1,220

398

(2,390)

1,620

Taxation





(472)

Profit for the period





1,148

 

Property related costs of £1.4 million have been excluded from the Headline PBIT measure for the six month period ending 30 September 2013.  These costs consist of £0.5 million relating to exit of existing leases and have been recognised within the respective divisional result, and £0.9 million recognised within the head office result, relating to the costs incurred during the vacant period of Creston House, including double rent, rates and service charge.

 

Restructuring related costs of £0.3 million have been excluded from the Headline PBIT measure for the six month period ending 30 September 2013.  These consist of the associated closure costs of Vitaris and its trading losses during the Period.

 

 








Communications

Health

Insight

Head Office

Group

Six months ended

30 September 2012

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

Turnover (billings)

29,044

13,308

10,513

-

52,865

Revenue

20,650

10,978

5,537

-

37,165

Headline PBIT

3,125

2,600

38

(1,334)

4,429

Property related costs

-

(432)

-

-

(432)

Movement in fair value of deferred consideration

-

4,032

-

-

4,032

Future acquisition payments to employees deemed as remuneration

-

(150)

-

-

(150)

Reported PBIT

3,125

6,050

38

(1,334)

7,879

Finance costs

-

-

-

(75)

(75)

Notional finance credit on future deferred consideration

-

63

-

-

63

Profit before taxation

3,125

6,113

38

(1,409)

7,867

Taxation





392

Profit for the period





8,259







 

 


Communications

Health

Insight

Head Office

Group

Year ended

31 March 2013

 

£'000

 

£'000

 

£'000

 

£'000

 

£'000

Turnover (billings)

58,511

26,426

22,151

-

107,088

Revenue

41,142

21,949

12,098

-

75,189

Headline PBIT

6,164

5,081

1,404

(2,484)

10,165

Property related costs


(361)


(583)

(944)

Acquisition related costs

-

(152)

-

-

(152)

Movement in fair value of deferred consideration

-

6,799

-

-

6,799

Impairment of goodwill

-

(5,161)

-

-

(5,161)

Credit for future acquisition payments to employees deemed as remuneration

-

299

-

-

299

Reported PBIT

6,164

6,505

1,404

(3,067)

11,006

Finance costs

-

-

-

(154)

(154)

Notional finance credit on future deferred consideration

-

154

-

-

154

Profit before taxation

6,164

6,659

1,404

(3,221)

11,006

Taxation





(1,212)

Profit for the period





9,794

 

 

Geographical segmentation

 

The following table provides an analysis of the Group's turnover and revenue by geographical market, irrespective of the origin of the services:

 


Turnover

Revenue


Six months ended 30 September 2013

Six months ended 30 September 2012

Year ended 31 March

2013

 

Six months ended 30 September 2013

Six months ended 30 September 2012

Year ended 31 March

2013

 


£'000

£'000

£'000

£'000

£'000

£'000








UK

33,635

35,808

73,922

23,875

24,268

48,951

Rest of Europe

8,621

8,127

15,508

6,320

5,302

12,278

Rest of the World (including USA)

6,291

8,930

17,658

5,482

7,595

13,960


48,547

52,865

107,088

35,677

37,165

75,189

 

 

6.         Taxation

 

The Reported tax rate of 29 per cent is higher than the UK statutory rate of 23 per cent as a result of higher rates of tax charged on US income. 

The Headline tax rate of 25 per cent is higher than the UK statutory rate because of the impact of non-deductible expenditure.  A similar Headline tax rate is expected for the full year, following on from the artificially low tax rate in the year ended 31 March 2013.  During the year ended 31 March 2013 tax provisions totalling £1.6 million were released following the resolution of the enquiry into the deductibility of goodwill written off on the closure of CML Research Ltd.  In future periods we expect the Headline tax rate to remain at a similar level to this year, as a higher tax rate on growing US income is offset by a falling UK statutory tax rate.

7.         Earnings per share

 


Headline

Reported


Six months ended 30 September 2013

 

Six months ended 30 September 2012

 

Year ended 31 March 2013

 

 

Six months ended 30 September 2013

 

Six months ended 30 September 2012

 

Year ended 31 March 2013

 

 

Earnings














Profit for the period (£'000)

2,677

4,499

8,924

1,148

8,259

9,794








Attributable to:







Non-controlling interest (£'000)

48

-

58

48

-

58

Equity holders of the parent (£'000)

2,629

4,499

8,866

1,100

8,259

9,736








Number of shares














Weighted average number of shares

60,347,772

60,458,946

60,458,946

60,347,772

60,458,946

60,458,946

Dilutive effect of shares

91,591

-

-

91,591

-

-


60,439,363

60,458,946

60,458,946

60,439,363

60,458,946

60,458,946








Earnings per share







Basic earnings per share (pence):

4.36

7.44

14.66

1.82

13.66

16.10

Diluted earnings per share (pence):

4.35

7.44

14.66

1.82

13.66

16.10

 

The Headline EPS and Headline DEPS are based on the Headline PBT attributable to the equity holders of the parent analysed in note 4 less attributable tax and divided by the weighted average number of shares and by the weighted average number of diluted shares respectively.

 

Diluted earnings per share has been calculated based on the dilutive impact of 867,465 employee share options which were outstanding as at 30 September 2013 (30 September 2012: nil).

 

 

8.         Dividends

 

The prior year final dividend of 2.67 pence (H1 2013: 2.67 pence) per share was paid to shareholders on 12 September 2013 giving a total of £1,609,782 (H1 2013: £1,614,254).

 

The Board has declared a half year dividend to be paid on 10 January 2014 of 1.20 pence (H1 2013: 1.00 pence) per share to all ordinary shareholders on the register at 6 December 2013. 


9.         Non-current assets

 

Six months ended

30 September 2013






Property, plant and equipment

£'000

Intangible assets - goodwill

£'000

Intangible assets - other

£'000

 

Total

£'000

Net book amount at

1 April 2013

4,442

105,022

1,359

110,823

Additions

1,205

-

110

1,315

Disposals

(63)

-

-

(63)

Depreciation and amortisation

(828)

-

(176)

(1,004)

Exchange differences

(47)

(827)

(26)

(900)

Net book amount at            30 September 2013

4,709

104,195

1,267

110,171






Six months ended

30 September 2012






Property, plant and equipment

£'000

Intangible assets - goodwill

£'000

Intangible assets - other

£'000

 

Total

£'000

Net book amount at

1 April 2012

3,390

107,050

1,473

111,913

Additions

1,150

-

50

1,200

Disposals

(12)

-

-

(12)

Depreciation and amortisation

(793)

-

(135)

(928)

Exchange differences

(14)

(200)

-

(214)

Net book amount at            30 September 2012

3,721

106,850

1,388

111,959











Year ended 31 March 2013






Property, plant and equipment

£'000

Intangible assets - goodwill

£'000

Intangible assets- other

£'000

 

Total

£'000

Net book amount at                1 April 2012

3,390

107,050

1,473

111,913

Additions

2,598

-

143

2,741

Disposals

(24)

-

(13)

(37)

Acquisition of subsidiary

58

2,183

-

2,241

Impairment

-

(5,161)

-

(5,161)

Charge for the year

(1,615)

-

(263)

(1,878)

Exchange differences

35

950

19

1,004

Net book amount at            31 March 2013

4,442

105,022

1,359

110,823

 


10.        Provisions for other liabilities and charges

 

The deferred consideration obligations are set out below:

 


As at

30 September

2013

As at

30 September

2012

As at

31 March

2013


£'000

£'000

£'000





Brought forward

1,714

6,929

6,929

Movement in fair value of deferred consideration

(30)

(4,032)

(6,799)

Acquisitions made during the financial year

-

-

1,387

Exchange differences

(19)

15

351

Income statement:




- Notional finance cost/(credit) on future deferred consideration

27

(63)

(154)

Carried forward

1,692

2,849

1,714










As at

30 September

2013

£'000

As at

30 September

2012

£'000

As at

31 March

2013

£'000

Analysed as:

Non-current liabilities

 

1,692

 

2,849

 

1,714

 

The Group considers that the above liabilities approximate to their fair value.  The notional interest rate used during the Period was 3.3 per cent (H1 2013: 3.3 per cent).

 

The earn-out obligations will be paid in cash, in accordance with the associated sale purchase agreement. These payments become due in July 2015.

Under IFRS 3 the Group recognises any changes in the fair value of the deferred consideration for previous acquisitions through the Consolidated income statement. During the Period a credit of £0.03 million has been recognised due to the revaluation of the deferred consideration of the Cooney/Waters Group.

11.        Derivative financial instrument

In the prior year the Group managed its foreign currency risk through a derivative financial instrument which expired on 26 March 2013. The derivative financial instrument was designated as a cash flow hedge with an estimated net fair value liability of £40,000 recognised on the balance sheet as at 30 September 2012.  In the current period the Group has not entered into any hedging arrangements and as such there is no derivative financial instrument to recognise as at 30 September 2013.

 

12.        Analysis of net and total cash/(debt)

 

 

Six months ended 30 September 2013

As at

1 April 2013

Acquisitions*

Cash flow

Foreign exchange

As at

30 September 2013


£'000

£'000

£'000

£'000

£'000







Cash and cash equivalents

11,208

-

(8,579)

151

2,780

Bank overdraft

-

-

-

-

-

Net cash and cash equivalents

11,208

-

(8,579)

151

2,780

Revolving credit facility

-

-

(1,000)

-

(1,000)

Acquisition loan notes

(10)

-

10

-

-

Finance leases

-

-

-

-

-

Net cash

11,198

-

(9,569)

151

1,780

Provision for deferred consideration

(1,714)

22

-

-

(1,692)

Total cash

9,484

22

(9,569)

151

88







 

 












Six months ended 30 September 2012

As at

1 April 2012

Acquisitions*

Cash flow

Foreign exchange

As at

30 September 2012


£'000

£'000

£'000

£'000

£'000







Cash and cash equivalents

1,818

-

(569)

(60)

1,189

Bank overdraft

(1,898)

-

(302)

-

(2,200)

Net cash and cash equivalents

(80)

-

(871)

(60)

(1,011)

Revolving credit facility

-

-

(1,000)

-

(1,000)

Acquisition loan notes

(10)

-

-

-

(10)

Finance leases

(2)

-

-

-

(2)

Net debt

(92)

-

(1,871)

(60)

(2,023)

Provision for deferred consideration

(6,929)

4,080

-

-

(2,849)

Total debt

(7,021)

4,080

(1,871)

(60)

(4,872)







 

 






 

Year ended 31 March 2013

As at

1 April 2012

Acquisitions*

Cash flow

Foreign exchange

As at

31 March

2013


£'000

£'000

£'000

£'000

£'000







Cash and cash equivalents

1,818

(1,235)

10,838

(213)

11,208

Bank overdraft

(1,898)

-

1,898

-

-

Net cash and cash equivalents

(80)

(1,235)

12,736

(213)

11,208

Acquisition loan notes

(10)

-

-

-

(10)

Finance leases

(2)

-

2

-

-

Net (debt)/cash

(92)

(1,235)

12,738

(213)

11,198

Provision for deferred consideration

(6,929)

5,215

-

-

(1,714)

Total (debt)/cash

(7,021)

3,980

12,738

(213)

9,484

 

 

* Includes both cash and non-cash items.

13.        Proceeds on operating lease

 

On 7 January 2013 the Group entered into an operating lease for the new London office. On signing the lease, the Group received a one-off cash payment of £7.2 million (including VAT) in relation to a reverse premium and agreed dilapidations obligation. As at 31 March 2013 net proceeds of £6.5 million on the operating lease remained and were recognised as part of the Group's operating cash flow.  Excluding the £6.5 million from the Group's operating cash flow of £18.8 million for the year ending 31 March 2013 resulted in an adjusted operating cash flow of £12.3 million.

 

During the Period to 30 September 2013 £3.7 million of the operating lease proceeds have been utilised to fulfil the dilapidations obligation and settle the associated VAT liability.  Excluding the £3.7 million (H1 2013: £nil) from the Group's operating cash outflow of £4.3 million (H1 2013: inflow of £1.7 million) results in an adjusted operating cash outflow of £0.6 million (H1 2013: inflow £1.7 million).

 

14.        Related-party transactions

 

During the six months ended 30 September 2013 total fees of £32,500 (H1 2013: £32,500) were incurred in relation to City Group P.L.C., £15,000 (H1 2013: £15,000) for the provision of company secretarial services and £17,500 (H1 2013: £17,500) for the services of Mr D C Marshall, a Non-Executive Director.  The balance due at 30 September 2013 was £nil (30 September 2012: £nil).  All transactions were conducted on an arm's length basis.

 

15.        Principal risks and uncertainties

 

Details of our principal risks and uncertainties were previously disclosed on pages 39 to 40 of the 2013 Annual Report and Accounts.  In that disclosure we referred to our mitigation procedures which remain relevant to the risks outlined below: 

 

·      A fast-moving communications industry with high levels of competition, partly due to low barriers to entry, could lead to pressures on client retention, budgets and price.

·      Turbulence in the macro-economic environment could affect the Group's financial performance due to volatility in revenues and expenses, and clients or suppliers going out of business.

·      Loss of key clients will lead to reduced revenues and impact the Group's financial performance.

·      Loss of key staff could lead to inability to deliver projects, potential loss of clients and potential inability to obtain new clients.

·      Acquired businesses could perform poorly, which could impact the Group's overall performance and result in an impairment of goodwill.

·      Inadequate services provided by third-party outsourced suppliers could lead to poor client delivery, loss of clients, increasing operating costs and negative impact on reputation.

·      Poor working capital or overall capital position could lead to the Group being unable to repay liabilities when they fall due, impacting its reputation and impairing its ability to raise finances or make further acquisitions.

·      Tougher procurement-led client tendering could lead to reduced prices for services provided and longer payment terms from clients.

·      Failure of data management or IT systems could lead to delays to client work or fall foul of data protection requirements.  Unauthorised access could compromise client relationships.  Reputation could also be affected.

·      Changes to regulations and legal requirements could restrict or burden the Group's activities.

 

These principal risks and uncertainties have the potential to impact our results or financial position during the remaining six months of the financial year.

 

16.        Statement of Directors' responsibilities

 

The Directors confirm that to the best of their knowledge these condensed consolidated set of financial statements have been prepared in accordance with IAS 34 as adopted by the European Union.  The half year management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R; namely:

 

·      an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·      material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

 

The Directors are responsible for the maintenance and integrity of the Company website.  Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

 

The Directors of Creston plc are listed in the Creston Group Annual Report and Accounts 2013.  A list of current Directors is maintained on the Creston website: www.creston.com.

 

By order of the Board

Don Elgie

28 November 2013

Group Chief Executive

 

17.        Forward-looking statements

 

Certain statements in this half year report are forward-looking.  Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to have been correct.  As these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements.

 

We undertake no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

 

18.        Availability of the half year report

 

Copies of the half year report are available on the Company's website www.creston.com.

 


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

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