St Ives Group’s decision to move away from print has been backed by its latest results which show that the company’s Strategic Marketing division is shoring up the whole company, delivering like-for-like revenue growth of 23% during the past six months, and accounting for 85% of operating profits.
Earlier this week, the company announced it has offloaded the bulk of its print (Marketing Activation) operations to SelmerBridge, to concentrate on other group companies such as Occam and Amaze.
The company said that group revenue in the 27 weeks to February 2 rose 7% year-on-year to £146.5m, which more than offset an 11% decline in the print business and a 10% decline in the books segment.
Adjusted profit before tax rose to £12.7m from £9.5m in the corresponding period a year earlier, although one-off adjustments of £27.7m mean the group still reported a statutory loss before tax of £15m, compared to a loss of £3.1m the year before.
St Ives chief executive Matt Armitage said: “Strategic Marketing continues to go from strength to strength and making a significant 85% contribution to adjusted operating profit during the period. Trading continues to be strong in this segment.
“We are encouraged by new projects won from both existing and new clients, and excited by the opportunities generated from increased collaboration between our businesses.
“The disposal of a significant element of our Marketing Activation segment significantly reduces the group’s exposure to the structurally challenged, commoditised print markets and the risk of further, potentially significant restructuring costs. We remain confident in our long-term growth strategy to generate value for shareholders.”
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