6 December 2016



14/06/04 Leslie Copeland

Marketing services play Creston scored a 130% profits leap for the year to March, topping forecasts from broker Charles Stanley. Pre-tax profits leapt to £2.1m, ahead of the £2m forecast, on a 58% sales hike to £29.5m, with each subsidiary performing well in tough markets. Margins were aided by Nelson Bostock Communications, the public relations firm acquired in October, and the withdrawal from lower margin printing work at its TRA and EMO businesses. MSL outperformed the market research sector with revenues rising by 16% - it is seeing good demand from the likes of Tesco and Unilever, and has added clients including Carlsberg Global, Danone and L'Oreal. TRA delivered 18% growth and has won new work from Stanley Leisure, Kerry Foods and Mates Condoms. Analyst Ben Archer has modestly upgraded his forecasts for 2005, but these ignore potential acquisitions. He suggests profits of £3.1m, earnings of 9.5p and a 2p dividend. On a forward p/e of 15.8, the shares aren't cheap but Creston deserves the rating after this, its third consecutive set of record results. Creston's model is robust. Chief executive Don Elgie believes 2004 is the first year of marketing upturn and the company is successfully cross-selling its services. Those who bought at the GCI recommendation price of 57.5p back in June 2002, should keep holding.

Sector: Media

Companies: Creston

Market cap: £33.87m

PE Forecast: 15.8

Share price: 150p

Cash Shells 2015

Published in September 2015 this annual research report provides a comprehensive overview of cash shells on the Main Market, AIM and PLUS landscape. Order your copy today


Superb investment toolkit for private investors

SharePad is the new web-based service from ShareScope. Easier to use and more powerful. Perfect for tablets, Macs and Windows PC. Covers ALL your investment requirements.

Growth Company Investor: free trial

Since 2008, our share tips outperformed the benchmark by 281%. Take a free trial and get access to our recommendations today. Start free trial now.

Share recommendations and small-cap stock picks

Small-cap and growth company share recommendations on AIM- and PLUS-listed companies. Latest analysts' stock tips and advice on which are the best shares to buy on London's junior stock markets.

What Investment magazine: save 45% on the shop price

Be the first to receive our independent analysis and research, designed to help you generate more wealth for you and your family over the long term. Subscribe and save.

Popular Recommendations

Latest Recommendations

Mirada 04/01/16

Avoid this digital TV software stock until we see some more contract wins  

Sector: Software & Computer Services

Tracsis 16/02/16

A quality stock that's up with events

Sector: Software & Computer Services

OptiBiotix Health 15/04/16

A 'gut feel' buy

Sector: Pharmaceuticals & Biotechnology

More Recommendations