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.
Liam Neeson's Downton dreams
- 1 Mario Balotelli: Staff at arson-hit Manchester Dogs' Home convinced Liverpool striker is behind five-figure donation
- 2 Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
- 3 iOS 8 is full of shiny new features - but it's terrible news for app developers
- 4 Friends 20th anniversary: Six things we wouldn't have without influential comedy series
- 5 Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Scottish independence referendum results: David Cameron pledges plans for 'English votes for English laws' by January
Scottish independence live: Scotland gives a clear 'No' in historic referendum - as it happened
Scottish referendum results: David Cameron set to unveil major devolution of powers to England
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Scottish independence: Tory revolt against 'devo max' grows as Rail Minister Claire Perry joins
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: The Queen breaks silence on referendum debate – as think tank warns of £14bn black hole if Scotland votes Yes
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...