Taylor Nelson Looks To Build On 2003 Successes

TNS acknowledges that the speed of the integration of NFO, the research business acquired from Interpublic last year (see TNS Shares Jump On $425m NFO Worldgroup Acquisition), disrupted business in the second half of the year. Nonetheless, the 2003 operating margin for the enlarged group, inclusive of synergies but before integration costs, is expected to be around 10%.

According to today’s trading statement, the original TNS business achieved good growth in the United States last year, despite a flat market. Conditions in Europe were no better but the group expects improved results in the region during the second half. By contrast, growth has slowed in Asia-Pacific, largely as a result of the integration process.

Syndicated services maintained their steady growth in 2003 and turnover from consumer customised activities improved in most regions. However, unfavourable market conditions continued to impact Healthcare and Business Services. NFO’s revenue performance was broadly flat but the integration is on track and operating cost synergies in 2004 should come to at least £15 million.

Outlook The improved state of the US market plus the prospect of an upturn in Europe and promising conditions in Asia-Pacific leads TNS to assume that the worldwide market for market information will continue to improve.

“Encouraged by the level of new orders coming through towards the end of 2003, the group expects that its own performance in 2004 will be broadly in line with the market,” the statement read. “Further improvement in the operating margin for the enlarged group is expected.”

Taking into account the rapid integration and the anticipated revenue synergies, TNS believes that in the longer term, it is well positioned to increase its market share.

Shares in TNS were up 4.75p at 214.75p at midday today.