Daily Research News Online no. 11562

Creston Revenue Dips

April 20 2010

UK-based insight and communications group Creston has reported a 4% decline in revenues for the year ended 31 March 2010, which it says is 'marginally ahead' of the Board's expectations.

David Grigson Founded in 2001, Creston owns market research firms ICM, Marketing Sciences, Newvista Research, CML Research, and Fieldwork UK. In 2008, its sensory panel company MSTS was integrated with product development specialist Marketing Sciences.

In a preliminary trading statement issued earlier, Creston claims it has performed 'marginally ahead' of the Board's expectations of revenue, headline earnings before interest, taxes, depreciation and amortization (EBITDA), headline EBIT and net debt.

The firm says its 2010 results have been driven by 'good momentum' in business from existing and new clients, plus a contribution from its new start-ups such as mobile marketing and digital health.

'Since the final acquisition earn-out periods all ended in March 2009, our three divisions of Insight, Communications and Health have continued to work well together, sharing clients, evolving new product offerings and streamlining operational efficiencies within their respective divisions,' the firm said in the statement.

During the financial year, total debt was reduced by almost £16m to £25m, which the firm said is due to an improved working capital position and a strong cash conversion during the second half of the period.

The company, which did not pay an interim dividend this year, plans to recommend a final dividend due to 'robust cash flow'.

Separately, David Grigson took over as Chairman of Creston on 1 April from David Marshall who remains on the Board as a Non-Executive Director.

Grigson was CFO of Reuters until July 2008, before which he was CFO of EMAP plc and Chairman of EMAP Digital. He is also a Non-Executive Director of Standard Life, The Carphone Warehouse and Ocado.

Web site: www.creston.com .