Marketing services and print group St. Ives (LON:SIV) said its campaign to “reshape the group” has so far been successful, leading to an increase in full year revenues and profits despite “very tough” conditions.
Investors cheered today’s results report covering the 12 months to 29 July, sending shares in St Ives up 8.5 percent at 75 pence, giving the company a market cap of £84 million.
During the year, St. Ives sold its magazine printing business to reduce its exposure to commodity print, while acquiring field sales and marketing company Tactical Solutions.
Post period, St. Ives made a couple more acquisition, purchasing Response One and Pragma to further “enhance our marketing services offering”.
St Ives has also continued investing in organic growth in its marketing services.
The company has also managed to win new business, securing new deals from HSBC, RAC and Hachette.
On the financial front, St Ives saw its pre-tax profits jump 28.3 percent to £16.9 million as sales increased 2 percent to £297.2 million. Earnings per share were up 21.6 percent at 13.22 pence.
The company has also managed to increase its cash balance, which stood at £16.3 at the end of July compared to £a debt of £2.7 million a year earlier. In the meantime, the group’s balance sheet increased by £6.7 million to £136.6 million.
The group said it will use its cash to make further acquisitions and further boost its marketing business, expecting it to become a significant growth driver for the group.
“The last year has seen significant and important strides forward for St Ives. We have continued to reposition the group by strengthening our position in marketing services whilst successfully moving away from commoditised print markets,” said chief executive of St. Ives Patrick Martell.
“The sale of the magazine printing business and the acquisition of three further marketing services businesses have significantly changed the shape of the group. We have also made further encouraging financial progress despite very tough trading conditions and we have again strengthened the balance sheet.”
St Ives has decided to increase its full year dividend from 3.5 pence in 2010 to 5.25 pence.