Market information group, Taylor Nelson Sofres (TNS) has revealed good growth in revenue in the first half of 2005 across most regions, with a weaker than anticipated performance in the UK and US custom research division.
According to a trading update issued by the company, group full year underlying revenue growth is expected in be broadly in line with market rates, weighted more heavily to the second half of 2005.
TNS expects the global market for information to rise up around 4% in 2005 with demand for syndicated services continuing to increase steadily.
Europe is predicted to enjoy a strong first half performance, with underlying growth believed to be ahead of the market. The UK however, is expected to show a decline in the first half of 2005, and forecast to be broadly flat for the full year.
The US experienced a difficult start to the year, despite showing a drop in the first half of the year, TNS predicts it will show improvement through the rest of 2005, however.
Asia Pacific is forecast to show strong growth in the first half of the year, with continuing strength over the next six months.
TNS anticipates reaching around a 25 to 50 basis points rise in operating margin for the full year, with the improvement weighted to the second half, in line with underlying growth.
Commenting on the results, Mike Kirkham, chief executive of TNS said: “Our syndicated services continue to perform well but we have seen more variability in custom research. The result is that in most regions underlying growth was ahead of the market in the first half, and we expect this good performance to be maintained.”
He added: “First half revenues in the UK and US have been disappointing, but actions are being taken in these areas. Assuming economic conditions remain unchanged, we anticipate improved performance for the rest of the year, driven by our focus on global accounts and increased recognition in the marketplace of the value we can add to clients through our areas of expertise.
TNS enjoyed a strong 2004, announcing a 4.1% rise in underlying revenue, above predictions made by the Group at the beginning of the year (see Taylor Nelson Sofres To Grow Ahead Of Market In 2005).
The company’s trading statement, released in March, reported an increase of 17.4% in revenue for 2004 and a growth of 17% in full year dividend. TNS achieved its aim of reducing net debt to below £350 million, showing a reduction to £335.1 million, compared to a total of £367.7 million in 2003.
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