TNS Holds Steady In Soft Markets
Global market research firm, Taylor Nelson Sofres (TNS), this morning said that it expects full-year revenues to be in line with expectations, after the first half delivered operating profit up by 5.1% to £25.8 million.
Kirkham also said that the company’s $425 million acquisition of NFO Worldgroup from Interpublic is progressing well (see TNS Shares Jump On $425m NFO Worldgroup Acquisition). NFO’s operations are to be merged with TNS and the company expects the integration to be earnings enhancing within the first full year of ownership.
Trading and outlook TNS anticipates that during 2003, the enlarged group will achieve turnover growth in line with expectations. In respect of the original TNS business, orders secured at the end of July were ahead of the same period last year.
A stronger margin performance is expected from NFO in H2, which should push the operating margin for the enlarged group above that which would have been achieved by the original TNS business alone.
The company says that recent signs of an improvement in the US markets have led to an increase in client enquiries, but adds that it is nevertheless premature to talk of a sustained recovery. Northern Europe continues to be soft but there are signs of a pick-up in parts of southern, central and eastern Europe. Asia Pacific is still growing. TNS predicts low single digit growth for the year as a whole.
“While it is too early to say whether that growth will accelerate in the first half of 2004, we do expect our markets to improve as the global economy becomes more stable,” said Kirkham.
Shares in Taylor Nelson Sofres were up 1.2% at 207.5p by 10.30am today.
