St Ives gets H1 boost from marketing services

11th Mar 2014 08:23

A focus on marketing services has driven half-year profits higher at print and marketing group St Ives.St Ives, which provides marketing services for dozens of big customers such as banking group HSBC, said the division generated 35% of underlying group operating profit in the half-year and was on target to contribute more than half of group underlying operating profit by 2016.The group boosted underlying pre-tax profit by 13.1% to £12.9m on a £3.1m rise in revenue to £164.8m in the 26 weeks to January 31st.Marketing services revenue rose by half to £46.7m, fuelling an increase in pre-tax profit to £6.2m from £1.2m a year ago. The group raised its interim dividend 7.5% to 2.15p per share.St Ives's marketing services operation includes businesses within data marketing, digital marketing, consultancy services and field marketing. Its print services division is made up of a book business and a marketing printing operation.Chief Executive Patrick Martell said a shake-up of its print services division and signs of recovery and improved consumer confidence in the UK economy meant St Ives was well-placed to make full-year progress."Having completed our planned restructuring activity and improved profitability within the group's print services, we are now focused on expanding and strengthening our marketing services," he said.Shares in St Ives rose 4.5p or 2.28% to 202p at 08:33 in London.PW