Marketing still surging at St Ives

St Ives Group is continuing to build its marketing services businesses, hailing the sector’s contribution to a 5% rise in revenues in the year to July in its latest results, with underlying profits also up, 10% to £33m.
However, despite what chief executive Matt Armitage calls “a very good year for St Ives, with a strong financial performance”, pre-tax profits have slumped 27% from £11.9m last year to £8.7m in 2015, while its net debt has risen from £42.7m to £62.8m.
With basic earnings per share also down, 49% from 8.60p to 4.35p, the City has given the figures a rather lukewarm reception, and its share price down 3.4% today (October 6) to 183p.
However, the marketing division continues to outperform the other parts of business, contributing 46% (compared to 37% in 2014) of underlying operating profit.
It has also managed to convince over 100 clients to use the services of more than one group business, including Johnson & Johnson, Carlsberg, Royal Mail and Pizza Express.
Armitage said: “The extent of the growth in collaboration between our businesses, and the increase in international activity for our clients is clear evidence that our strategy is working.
“The new financial year has started in line with our expectations, and we continue to invest in our higher margin strategic marketing activities. Assuming current market conditions continue, we are confident that we will make further strategic and financial progress during the year ahead.”