Taylor Nelson Sofres plc (TNS), a world leader in market information, today issues the following trading update, ahead of reporting interim results on 3 September 2007.
- Underlying revenue growth for the first six months of 2007 is expected to be over 5%
- US custom business returned to growth
- Good performance across rest of group
- Successful execution against strategy gives group confidence in outlook for the year
Group: Organic revenue growth for the group for the first six months of 2007 is expected to be over 5 per cent. The impact of foreign exchange is expected to reduce reported revenue by around 4 per cent. The net effect of acquisitions and disposals is anticipated to have a positive impact on reported revenue of around 1.5 per cent.
Europe: The region overall achieved good underlying growth. The UK had a strong first half, based on the continued strength of syndicated services and a significant improvement in the custom business. France and the Rest of Europe achieved a steady performance.
North America: Encouraging progress is being made in rebuilding US custom, with good levels of new business contributing to revenue growth in the first half in that business and for the North America region as a whole.
Asia Pacific, Latin America, Middle East and Africa (ALM): The ALM region continued to perform well in the first half.
Sectors: The Consumer sector has grown well, with improved performance across all major markets. Growth in the Technology sector was strong. All other sectors have performed well.
Share buy back and net debt
Since the share buy back programme started in September 2006, the group has purchased a total of 27.7 million of its own shares for a value of £59.9 million. As part of the continued programme, £40.1 million of shares are expected to be repurchased in the second half of 2007. After acquisition spend of £23 million in the first half, net debt at 30 June 2007 is expected to be around £325 million.
Full year outlook
For the full year, it is expected that revenue growth in syndicated services will continue to be healthy, benefiting from new services and investments in technology. In the custom business, revenue growth in Europe is anticipated to remain steady. The US custom business is expected to continue to make steady progress and North America overall is now expected to show growth for the year. The ALM region should again outperform the market with double digit revenue growth for the year.
As the group continues to execute against strategy, TNS remains confident in its outlook for the year and expects to achieve improvement in both underlying revenue growth and adjusted operating margin in 2007.
With effect from the interim results 2007, TNS will change its regional revenue reporting to reflect the creation of the Asia Pacific, Latin America, Middle East and Africa (ALM) region. It will report three regions: Europe (including disclosure of UK, France, Rest of Europe), North America, and ALM. Previously Middle East & Africa was included in Europe and Latin America was shown as part of the Americas. Prior year comparatives are shown below.
| || H1 2006 |
| ||FY 2006 £m|
| UK ||71.4|| ||151.1|
| France||77.1|| ||145.5|
| Rest of Europe||162.2|| ||352.6|
|North America||101.1|| ||209.2|
A conference call with Andy Boland, Finance Director, will be held at 08.30 on Monday 9 July:
UK dial in 0845 245 5000
International dial in +44 (0) 1452 562 716
Conference ID 6367966
Thereafter a replay of the call will be available:
UK dial in 0800 953 1533 / 0845 245 5205
International dial in +44 (0) 1452 55 00 00
Replay access number 6367966#
For further information, please contact:
Janis Parks, Head of Investor Relations: +44 (0)20 8967 1584
Joel Beckman, IR Director : +44 (0)20 8967 1384
Pam Small/Ash Spiegelberg, Brunswick: +44 (0)20 7404 5959
TNS is a global market insight and information group.
Our strategic goal is to be recognised as the global leader in delivering value-added information and insights that help our clients to make more effective decisions.
As industry thought leaders, our people deliver innovative thinking and excellent service to global organisations and local clients worldwide. We work in partnership with our clients, meeting their needs for high-quality information, analysis and foresight across our network of over 70 countries.
We are the world’s foremost provider of custom research and analysis, combining in-depth industry sector understanding with world-class expertise in the areas of new product development, segmentation and positioning research, brand and advertising research and stakeholder management. We are a major supplier of consumer panel, media intelligence and internet, TV and radio audience measurement services.
TNS is the sixth sense of business.