Investment: Taylor Nelson chooses the global media path
Tuesday 22 September 1998
For evidence, look no further than Taylor Nelson Sofres. The company yesterday reported its first set of interim results since it was created by an Anglo-French merger in December. Although the headline figures mean little, like-for-like revenues increased by 13 per cent and operating profits were up by 17 per cent.
The chairman, Tony Cowling, points out that multinational companies are increasingly awarding all their business to a single supplier. The merger gave Taylor Nelson a wider reach. Now it is abandoning its loose network of national offices in favour of international units specialising in fields such as healthcare, automotive and telecoms.
This clearly makes sense in these industries. But a large chunk of Taylor Nelson's business remains essentially local - for example, there are few multinational retailers.
What's more, the company remains vulnerable to a downturn. Despite attempts to make the business recession-proof by winning long-term contracts, 70 per cent of revenues still come from one-off projects. And Mr Cowling thinks that annual market growth, traditionally about 10 per cent a year, will slow to 6 per cent.
True, the increasing use of sophisticated technology and the advent of the Internet as an advertising medium mean that demand for Taylor Nelson's services will continue to grow. And there is always the chance it will be snapped up by a large advertising group. But on a forward multiple of 24 times forecast full-year earnings the shares - down 6p to 102p yesterday - are high enough.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 The confessions of men who ordered mail-order brides
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 5 'Isis' schoolgirls: Missing British teenager tweets picture of her Syrian takeaway
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
UK weather: Britain braced for snow as arctic air mass moves in
Power of Nepal earthquake was equivalent to 20 huge atomic bombs
Nepal earthquake video: Terrifying footage shows moment avalanche hit Everest Base Camp
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...