Group update from Patrick Martell CEO St Ives plc

Date Added: Mon 4 January 2010

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There have been many changes in St Ives recently, we have a new management team that is capable and determined to build on St Ives success. Miles Emley continues as our Non Executive Chairman; I have taken the role of CEO with Matt Armitage as CFO and Lloyd Wigglesworth, previously a Non Executive Director of St Ives taking on an
executive role as Group MD Commercial Products.

This new team brings a wide and varied experience in business, print, media and retail. Additionally, we are strengthening our management of the St Ives divisions with senior appointments of business and industry professionals who will bring new dimensions to the operations of St Ives.

I am delighted with the recent appointments of some very strong individuals with the likes of Nick Cole formerly Commercial Director at Bezier who has joined to head up Service Graphics, Giles Richell who heads up Web and joins us from the automotive sector, Rob Kelly heads up Marketing and Communications, Keith Westcott who joins us from Ericsson as Sales Director of Service Graphics. David Smith who's background includes Coca Cola and Guinness, plus over 8 years as a board director within software and services, joins as Group Sales Director for Direct. All will further enhance our push to create a varied, professional and credible management team and continue our efforts to operate and sell both divisionally and across the Group.

On Monday the 19th of October we announced our results for the year
ending July 2009. The key points from our report were as follows:

Extremely challenging markets and significant margin pressure

Some structural changes in demand in traditional markets such as magazines and obviously a cyclical reduction in demand across all markets

Sales remained broadly the same at £387M although the mix of sales changed to include more bought in products

New management teams in place across the business delivering change
US and Dutch businesses sold

Business is financially secure with new banking facilities in place

The underlying business remains profitable and despite significant cost associated with the restructure net debt reduced

Programme in place to identify new products and services where we can add value and reshape the business for future success

To support this last point we are currently embarked upon the most comprehensive review of our company and the marketplaces we serve that we have ever undertaken. I am confident this process will result in new opportunities for the business.

Currently the business operates within two broad marketplaces, commercial print and related marketing services and media print and related marketing services. The split of these markets is illustrated below.