St. Ives posts higher annual profit after restructuring

1st Oct 2013 10:49

St. Ives reported a 10.5 per cent annual rise in pre-tax profit to 6.4m pounds as the UK marketing services and print group keep a tight rein on costs.In the year to August 2nd 2013, underlying selling and administrative overheads decreased by £1.2m due to a restructuring. The overhaul included improved production efficiencies, successful procurement initiatives and the labour cost reductions.It helped to mitigate a slump in underlying revenue, which fell 3.2% to £317m from the prior year's £327.4m, reflecting weak performance of the Print Services division.Underlying revenue from the Print Services segment decreased by 9.8% to £27.4m.Despite the revenue decline within the Print Services segment, gross margins in the segment were maintained due to the restructuring efforts. Group underlying gross profit margin increased from 27.4% to 28.9%.A 36.2% jump in Marketing Services revenues to £17m helped to push earnings higher.Underlying basic earnings per share was up 8.5% to 16.93p from 15.61p."Our focus is on converting growth opportunities within Marketing Services," said Chief Executive Officer, Patrick Martell."This will be achieved through increased cross-selling, developing new sector based propositions, continued investment in our existing businesses, client led international expansion, and further carefully chosen acquisitions. We are confident that the group is well positioned for future growth."Shares fell 2.16% to 169.50p at 11:11 on Tuesday.RD