St Ives shines as it continues move away from print

Shares of marketing and print firm St Ives took off in early trading after it said, while extremely difficult trading conditions continue, it remains confident in future trading and hiked its dividend payment.

The group, which acquired three new marketing services as part of its move away from print, said underlying revenue rose 10.3% to £327.4m for the 52 weeks ended 27 July 2012. Underlying pre-tax profit for the period climbed 15.9% to £24.2m.

A total dividend of 5.75p per share has been offered, up 9.5% from last time.

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"Our market positions are strong, we continue to improve operational efficiencies, our financial position is robust and we have recently renewed our banking facilities. We are proposing an increased dividend and remain confident that further progress can be made," the group said in a statement.

The group reported net debt of £13.4m versus net cash £16.3m the previous year following the acquisitions.

Commenting on the results and the group's outlook, Chief Executive Patrick Martell added: "We have made continued progress in our transformational plan to build a substantial and broadly-based marketing services offering whilst moving away from commoditised print, and this has resulted in a significantly improved financial performance."

Martell said the three new marketing services acquisitions: Response One, Pragma and Incite have been successfully integrated and are performing well.

"Trading conditions remain difficult, but we are in a strong financial position and will continue to invest to realise growth opportunities, to improve operational efficiencies, and to develop the business for the long-term," the group said.

CJ