Creston Plc (LON:CRCRE) 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 Our forecasts for Creston are therefore withdrawn.
Interim results are consistent with previous updates, which have described a concentration of revenues in a smaller number of larger clients, with the long tail proving a more challenging market environment. The group is nevertheless providing a broader range of services across a greater range of geographies. Within the Communications & Insight segment (76% H117 revenues), the top 20 clients account for 67%, from 61% in the same period last year. The US Healthcare operations outperformed those in the UK, which continues to prove a difficult trading backdrop.
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