Quarterly results show slight revenue decline at Avesco

AIM-listed corporate services provider Avesco Group has unveiled a 10 per cent reduction in revenue in its preliminary results for the three months ended December 31st compared to the corresponding period one year earlier.

The group, which provides services to the professional presentation, entertainment and broadcast markets, reported that revenue was £30.1m at the end of the quarter, compared to £33.6m recorded in the three months ended December 31st 2011.

The group reported that the quarter benefited from the inclusion of the Paris Motor show, adding that the prior year included two major events in the Middle East - the Arab Games and the United Arab Emirates' 40th Anniversary celebrations.

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Excluding these events from the comparison between the two periods and adjusting for the disposal of Avesco's full service business in Monaco showed a 4% decrease in the underlying revenue, the group said.

The operating loss contracted by £0.2m compared to a loss of £0.3m in the corresponding quarter one year earlier.

A trading loss of £0.1m was reported compared to a profit of £0.1m in the corresponding period in 2011 and trading earnings before interest, tax, depreciation and amortisation (EBITDA) slid to £4.3m compared to £4.7m a year earlier.

Basic losses per share were 2.2p, representing an improvement from the loss per share of 2.6p in the three months ended December 2011.

The group also reported that Disney litigation funds were now at the collection stage.

Richard Murray, Chairman of Avesco, said: "Although the financial year 2012/13 has started slowly, with lower capital expenditure requirements this year and promising signs for much improved trading in the Far East, we remain positive regarding the outlook for the year as a whole.

"Our focus remains to generate cash, reduce debt and grow dividends, whilst maintaining a sound balance sheet. The group is well positioned, with the financial and operational capabilities in place, to continue its progress through 2013 and beyond."

He added: "The judgement in the Disney litigation, in which the group maintains an interest, is now collectible although it is expected that there may be a delay of a few months before receipt of funds by the group. The group's net interest in the award is estimated at approximately $60m."

Avesco's share price was down 1.16% to 213.50p at 10:20 on Thursday.

MF