Forecasts upgraded as St Ives advances 23%

BROKERS yesterday upgraded profit forecasts for St Ives, the printer, after it announced a 23 per cent jump in pre-tax profits before exceptional items together with a positive trading statement, writes Martin Flanagan.

The group made pounds 27.2m in the year to 31 July compared with pounds 22.1m last time. After a pounds 4.9m loss on the sale of non- core businesses, profits held steady at pounds 22.2m ( pounds 22.1m). The shares jumped 12p to 327p.

Miles Emley, chairman, said the only area not moving ahead was financial printing as stock market jitters affected corporate finance.

He said magazines had benefited from publishing customers increasing pagination as a result of improved advertising revenues. The division has also been underpinned by long-term supply agreements with some important customers, including a seven-year contract with IPC.

The chairman said rising paper prices, up 10 to 15 per cent in some cases, would not hit the company. Most big customers supplied their own.

In contrast, Mr Emley said the book market in Britain had remained unsettled.

St Ives was unconcerned about the future of the net book agreement, by which publishers impose a minimum retail price. 'Even if it unravels it will lead to an increase in volume for our book business,' he added.

The US business moved back into a small profit after a couple of years of losses. The total dividend rises 16 per cent to 6.40p (5.50p), with a 4.50p final.