REG - St. Ives PLC - Trading update <Origin Href="QuoteRef">SIV.L</Origin>

SivotaAnnouncement

30/11/2017 07:05

RNS Number : 9151X
St. Ives PLC
30 November 2017
 
30 November 2017  
St Ives plc 
("St Ives" or the "Group")
Trading update
St Ives, the international marketing services group, provides the following trading update covering the three months to 3 November 2017.
Overall, trading in the period has been positive and ahead of management's expectations, with Group revenue running approximately 4% ahead of the equivalent period last year.
Strategic Marketing
The momentum achieved during the second half of the previous financial year has continued during the first three months of the new financial year. Like-for-like revenue growth in the segment was approximately 22% ahead of the equivalent period last year while operating margins have remained strong.
The profitable growth within Strategic Marketing continues to be driven by large new business wins, particularly within our digital businesses, along with increased collaboration across the segment, as highlighted in our recent full year results. 
Revenue visibility continues to improve and we are broadening the range of clients we work with as the segment grows. 
Marketing Activation
Trading conditions within our Marketing Activation segment continue to be challenging and highly competitive. Revenue for the first quarter was approximately 4% below the equivalent period last year and operating margins were in line with expectations. We have taken decisive action to reduce costs and to increase efficiency while continuing to diversify the customer base. Targeting customers that value service and innovation, as opposed to those focussed on price alone, remains a priority.
Books 
Within our Books business, as expected, revenue for the first quarter was approximately 12% below the equivalent period last year, reflecting the contract loss announced in February 2017. Operating margins were in line with expectations and we continue to focus on managing the cost base proactively.
Balance Sheet
Net debt to underlying EBITDA of 1.6 times at the end of the quarter was in line with the position at the end of the previous financial year and remains comfortably within our banking covenants. 
- Ends - 
For further information contact: 
St Ives plc 020 7928 8844 
Matt Armitage, CEO
Brad Gray, CFO 
MHP Communications  020 3128 8100
Tim Rowntree / Giles Robinson / Luke Briggs

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