- Turnover up 61% to £15 million
- Pre-tax profit, before exceptionals, up 26% at £0.95 million
- Good organic growth fuelled by new clients from blue chip new economy clients and technology companies
- Two new brands established and Bite launched internationally
- Strong start to second half of the year
Tom Lewis, Chairman of Text 100 Group plc, the recently quoted international technology pr company, said: "I am pleased to report a strong performance at Interims, following our enthusiastic reception in the City at flotation. We have continued to demonstrate our capacity for organic growth - both by adding new clients and establishing new start-ups.
"The Group has made a strong start to the second half of the year, and demand for our services remain high in all our geographic markets. As a result, the Board is confident that the Group will continue to show further progress at the full year."
Text 100 Interims
The first six months to 31st January 2000 have undoubtedly been the most exciting and demanding in the Text 100 Group's 19 year history.
The decision to float on the LSE in the immediate run up to the Millennium and amid all the anxiety about Y2K was not an easy or obvious choice, but it turned out to be well judged, and the company enjoyed an enthusiastic reception in the City - with twenty seven institutions applying to take stock.
Text 100 has produced a strong performance at the interim stage, with turnover up 61% at £15 million and pre-tax profit up 26% at £951k, before exceptional flotation expenses of £434k. EPS on an adjusted basis rose 3% to 2.55p, and the interim dividend increased 50% to 0.6p. This level of increase of the dividend at the interim stage is the result of the move to a twice-yearly dividend from the previous quarterly payment. The Board will continue to recommend a progressive increase in the full-year dividend whilst meeting the reinvestment needs of the business.
The rate of growth in turnover again demonstrates the Group's capacity for organic growth - both in terms of winning new clients across the globe and establishing new start-up operations as appropriate. Growth in pre-tax profits is also strong, but restrained by the inevitable losses incurred by new start-up subsidiaries in their early months. There has also been substantial investment in recruitment and training needed to sustain continuing growth.
During the first six months of the year the group has established a totally new brand in London and Sydney - AUGUST.ONE COMMUNICATIONS. Two of the Group's existing brands set up new overseas start-up operations. In September, the Text 100 brand established an operation in Hong Kong, while in October Bite Communications opened its first overseas subsidiary in San Francisco. This was a milestone for the Group and demonstrates Bite's capability of becoming an international PR company in its own right. In addition the company launched a specialist online marketing consultancy in the US called BrandX.
Much of the Group's growth has come from the addition of new clients. These include a good mix of blue chip new economy companies such as AltaVista, Virgin Biznet, Phone.com, AskJeeves.com and Getty Images as well as work for some of the world's prestigious technology companies including Handspring, Compaq, Network Associates, Unisphere, MCI Worldcom and Motorola.
Recently the Group appeared at No. 19 in a calendar 1999 league table of international pr firms with significant operations in the USA, researched and prepared by the Council of PR firms and published by O' Dwyer. This table again confirmed the Text 100 Group as the largest independent and international technology-specialist PR group.
The Group has made a strong start to the second half of the year, and demand for its services remains high in all of its geographical markets. As a result, the Board is confident that the Group will continue to show further progress at the full year.
For further information, contact:
Tom Lewis, Chairman, Text 100 Group 020 8996 4141
David Dewhurst, Finance Director 020 8996 4154
Nick Denton, Hogarth Partnership 020 7357 9477
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