Date: Tuesday 07 Oct 2014
LONDON (ShareCast) - Printing and marketing group St Ives doubled annual profits as the UK economic upturn boosted its marketing services arm.
St Ives said pre-tax profits in the year to 1 August rose 118% to £11.9m on a 3% increase in underlying revenue to £327.6m.
Basic earnings per share lifted 132% to 8.60p and the company boosted its total dividend by 10% to 7.15p per share.
Like-for-like revenue increased in both of its main businesses but marketing services increased sales by 12% while print services climbed a more modest 1%.
Marketing services now accounts for 46% of group underlying operating profit, including profit from acquisitions in the year on an annualised basis. Acquisitions of Realise and Hive improved its marketing services during the year and it said integration was going as planned.
Overseas expansion progressed as planned, in response to existing client demand, with a growing number of group businesses now servicing clients on an international basis.
Chief executive Matt Armitage said: "We are very pleased to report another strong set of results, in which marketing services made more than three times the underlying operating profit achieved by the entire St Ives group in 2009, demonstrating clear evidence of the ongoing success of our strategy and of our ability to collaborate across our individual businesses.
"The current year has started well and in line with our expectations, with marketing services benefiting from the UK economic recovery, from increasing marketing spend by our UK and international clients, and from our own organic growth initiatives.
"Overall we are confident St Ives will make further strategic and financial progress this year."