Profits rise at St. Ives

4th Oct 2011 13:59

Profits before tax were up 28% at print and marketing services group St. Ives for the year to the end of July. Figures were boosted by a 2% rise in revenue for the period, up from £291.5m to £297.2m, leading to pre-tax profits of £16.9m, eqivalent to 13.22p earnings per share (2010: £13.2m, 10.87p per share). Chief executive Patrick Martell: "The group has made good progress in improving the performance of those print businesses that support our marketing services offering whilst reducing its exposure to commoditised markets. Trading conditions within our traditional print markets, as a result of both cyclical and structural changes, remain extremely difficult and we do not expect these pressures to ease in the foreseeable future. "We start the new financial year having again improved our financial performance and have made good progress in executing our strategy. Our financial strength will enable us to continue to invest and reposition the business despite the current economic conditions and in the face of ongoing structural changes to our traditional businesses."We believe that within the next three years 30 to 40% of the group's profit will derive from our marketing services segment and that, despite the challenging climate, we will be able to continue to invest for the long term benefit of our shareholders." Cash at the end of the period rose from £10.5m to £16.3m. The firm was debt free at the end of the financial year. The board is recommending a final dividend of 3.5p, bringing the total dividend for the year to 5.25p, up from 3.5p the year before. The share price rose 8.7% to 75p by 13:06.NR