St Ives reports strong cashflow in trading update

Cashflow at St Ives is strong and net debt remains low, despite the business funding cost reduction programmes and the company's acquisition of Occam DM, according to its latest trading update.

In its pre-close update for the year to July 2010, the company reported good group progress and said trading in the final quarter had been in line with management expectations.

It added it was on track to meet expectations for the full year, despite the tough trading conditions, and claimed it had made "significant progress from the previous financial year".

In a Stock Exchange statement, the company said: "We continue to explore opportunities to reduce costs and improve efficiencies throughout our plants.

"We have further strengthened our management across the group and, in particular, our sales teams where significant resource has been recruited to support our ambitions going forward."

In June, St Ives purchased database marketing services company Occam DM in a deal worth up to £12.6m.