'Disappointing' Growth for TNS in UK and US

TNS today announced 'weaker than anticipated' growth in UK and US custom research. It expects overall revenue growth for this year to be line with the market at about 4% - a more cautious prediction than earlier in the year, when the company said it hoped to outpace rivals.

In today's trading statement, which comes ahead of the company's interim results on September 5th, TNS stated that, while demand for syndicated services continues to increase, the market for custom research is variable by both region and sector, with a noticeable pressure in the FMCG area.

The company expects a strong first-half performance in France and the rest of Europe, but the UK has experienced a decline, and is expected to be flat for the full year. US operations experienced a 'difficult start to the year', with the technology sector in particular seeing a fall in client numbers. The region is expected to improve through the rest of the year. By contrast, the company expects its Asia Pacific region to report strong growth in the first half, with further improvement in the rest of the year.

Predictions for the company's Media and Social & Polling sectors are good, while Healthcare grew more slowly in the first half, Technology was flat, and the Consumer sector saw a small decline. Markets for Business Services continue to be more difficult, and the company expects this sector to decline this year.

The news prompted analysts to downgrade their forecasts for the company, and shares in Taylor Nelson fell 4.6 percent to 207 pence in the UK this morning.

Chief Executive Mike Kirkham stated: 'First-half revenues in the UK and US custom research have been disappointing, but actions are being taken in these areas. Assuming economic conditions remain unchanged, we anticipate improved performance for the rest of the year, driven by our focus on global accounts and increased recognition in the market place of the value we can add to clients through our areas of expertise.'

The Group's home page is at www.tns-global.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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