NEWS22 April 2013

Creston on course for slight revenue rise

Financials UK

UK — Insight and communications group Creston expects £75m in full year revenues according to a trading statement ahead of its full year results.

Trading for the year-ended 31 March 2013 is expected to see a slight rise in revenues, up £0.1m from £74.9m in 2012, which is in line with consensus group headline profit before tax.

In the trading statement, Creston said that following a strong cash conversion, with operating cash flow ahead of board expectations, the group expected to be in a net cash position of over £10m at year-end including £6.5m of a previously announced £7.2m received as a reverse premium and contribution to the agreed dilapidations obligation for its new London office.

Creston said that following the end of its 20-year partnership with Sanofi Pasteur, it had reduced costs to mitigate the revenue lost although, it added, that “on the back of the agency’s excellent reputation for providing communications support, it has already begin to replace part of the Sanofi Pasteur revenue through developing a new client relationship”.

The group also said that its insight division was continuing to recover, with the board expecting it to report a stronger second half compared with the first half of the year.

Pictured is Creston chief executive Don Elgie.