StockMarketWire.com - Marketing communications group Creston expects its full year results for the year ended 31 March to be in line with consensus with growth in revenue, headline pre-tax profits and deadline diluted earnings per share.

Revenue is expected to be £76.9m (2014: £74.9m), with cash of £8.3m as at 31 March.

Creston also announced the acquisition of 51% of the share capital of How Splendid Ltd, a London-based digital design and development consultancy. On completion there is an initial cash consideration payment of £8.7m funded from Creston's existing cash resources and Splendid is expected to retain net current assets of £2.1m, including cash of £1m.

A balance sheet surplus payment may be made of up to £500,000 for any excess net current assets in the completion balance sheet in excess of the pre-agreed minimum requirement.

There will be a further final cash consideration payment of up to £7m in June 2017 for the 51% holding, based on average profit before interest and tax from April 2015 to March 2017.

For the remaining share capital there are no put options, however Creston will have a call option over 24% from April 2017 for a value up to £8.6m and for the remaining 25% from April 2019 for a value up to £11.9m.


At 8:32am: [LON:CRE] Creston PLC share price was +2.5p at 121p



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