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Porta Communications (PTCM)

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Thursday 23 January, 2014

Porta Communications

Trading Update

RNS Number : 3060Y
Porta Communications PLC
23 January 2014
 



 

23 January 2014

 

PORTA COMMUNICATIONS PLC
(the "Group" or "Porta")

Trading Update

 

Porta Communications plc, the AIM quoted international marketing and communications business, is pleased to provide the following trading update in advance of its final results for the year ended 31 December 2013.

 

Overview

 

The trading performance of the Group in the final quarter of the year was very strong and in line with management's expectations.


During the last three months, Porta produced a positive EBITDA of approximately £0.65m after all costs including start-up costs.

 

After adding back non-recurring costs, the Group achieved an annual EBITDA run rate of approximately £4.0 million for the three months ended 31 December 2013. The Directors believe that this is a clear indication of the rapid progress made by the Group during the last year.

 

Public Relations

 

Newgate Communications, the Group's global public relations division, achieved a number of new business wins throughout the year, but in particular in the last quarter as a result of improved activity in stock markets allied with our growing international capability. The Directors believe that Newgate Communications will continue to show strong growth in the new year.

 

The Group's expansion into Asia Pacific has, the Directors believe, been very successful and is likely to play a significant role for the Group going forward.  The Newgate operation in Australia, which only started in June, finished the year with over 70 clients and made a very positive contribution to the Group.  The Group's other two start-ups in Hong Kong and Singapore also performed well in what were difficult market conditions.  A positive contribution from both of these operations is expected in the current year.

 

The trading performance of Newgate Threadneedle was helped significantly by the increase in IPO activity on the London Stock Exchange's AIM market towards the end of 2013. This resulted in the division achieving a record year in terms of clients, fees and profits.  The volume of IPO's in the UK markets looks likely to be sustained which bodes well for 2014.

 

Advertising and Marketing

 

TTMV, the Group's consumer agency, continued to trade strongly late in the year as a result of good activity levels over the Christmas period. 

 

The Directors believe that the Group's start-up financial and charities agency, 21:12 and its studio 24-7, are on track for 2014.

 

Outlook

 

The board of the Company has, it believes, now achieved its initial strategy to build a profitable global marketing and communications group predominantly by start-ups. While the Directors expect there to be further small start-ups during the current year, the thrust of the second phase of the Group's strategy will see a balance between organic and acquisition led growth as the Company seeks to achieve critical mass in all of its operations. The Directors believe that the opportunities available to the Group give grounds for a high level of optimism for the future.

 

Enquiries

Porta Communications plc
www.portacomms.com

David Wright, Chief Executive
Gene Golembiewski, Finance Director

+44 (0) 20 7680 6500

N+1 Singer

Jonny Franklin-Adams
Alex Wright

+44 (0) 20 7496 3000

Newgate Threadneedle
Graham Herring

 

+44 (0) 20 7653 9850

 

 


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