Creston - Termination of coverage

Edison Investment Research is terminating coverage on Creston (CRE). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

Interim results and agreed 125p cash bid

Creston has published its interim results to end September, which show flat revenues with a like-for-like 4% decline. There was, however, a step up in PBIT margin from 10.3% to 11.6%, reflecting operational efficiencies from the Unlimited initiative and other planned overhead reductions, along with some benefit from currency. The company has this morning received a cash bid of 125p per share from DBAY Advisors, which controls 28.0% of the equity, recommended by the independent directors. Our for

N+1 Singer - Morning Song 05-10-2016

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At the end of April we re-ran our so-called “3 down then 1 up” screen. This selects companies with estimates that had been declining consistently since a year previously, but which had risen in the immediately preceding three months (see our note dated 29 April 2016). We have reviewed the performance and, while not being quite as strong as the previous period, it was still well ahead of the market and the screen appears to have some signalling value. In the c.5 months since selection the weighte

LIBERUM: Creston* - AGM statement: on track with expectations

Margin benefits

Creston’s AGM statement this morning confirms that trading is in line with expectations for the current year and our forecasts for both FY17 and FY18 are unchanged. Revenue in the first four months of FY17e was broadly flat over the previous year, but profits are more strongly ahead. This is partly currency-related, partly reflecting improvements to margins stemming from FY16’s operational initiatives showing through more strongly. The valuation remains at a marked discount to peers, despite the

LIBERUM: Creston - Tweak estimates post FY16 - Target price unchanged

Steady going

Creston’s full year results exceeded the expectations that had been set in January, with constant currency like-for-like revenues and headline PBT flat on the prior year. The group is making good progress in leveraging its Unlimited group branding, with an increasing number of clients working with several group agencies. Good cash conversion has led to a higher year-end cash position – there is no debt, enabling a progressive dividend (up 5% year-on-year) on a yield well ahead of sector and mark

LIBERUM: Creston - FY16 exceeds revised expectations/strong cash generation

Prelims – profits slightly ahead and flowing into FY17

Profits have come in ahead of expectations (PBT variance 4%) despite revenues being £1m light. The larger Communications business was slightly ahead on profits while the Health unit was measurably behind (revenue driven) with the outperformance at the group level delivered by central costs being nearly £0.4m lower than expected. Nonetheless this will be a relief for investors and management have confirmed that FY16 profitability is a sustainable baseline from which to forecast. Visibility indica

Strong cash performance

Creston’s brief year-end trading update indicates that FY16 revenue and earnings figures will be in line with indications given in January and our expectations. However, the cash performance is significantly better than we had anticipated at over £1m. FY17 should benefit from more focused recent attention to overhead management after the less consistent trading in H216, with no trading improvement currently factored in. The valuation remains at a significant discount to other smaller marketing a

Significant board changes

Richard Huntingford is stepping down as Chairman and will oversee the process to find a replacement (albeit he leaves at the end of March). A representative from BDAY Advisors Limited, Creston’s largest shareholder at 25.2%, is joining the board. The representative appointed was previously involved with the Mission Marketing Group. While the announcements are being made at the same time the Company has indicated that they are not connected. Ultimately we expect action if Creston cannot deliver o

Morning Song

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Morning Song

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The Hardman & Co Monthly: April 2024

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Initial Equity Trading Comments - 19 February 2024

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AUM up 30% in FY24, record flows, forecasts raised

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