In spite of issuing an upbeat trading statement, shares in entertainment, sports management and marketing group CSS Stellar fell 11.3%. Having disposed of ARB in its events division in December (causing a £2.25m write-off), chief executive Sean Kelly was in upbeat mood, commenting that the company's marketing and events division performed slightly ahead of target in the first four months of the current trading year, with the talent-management and television divisions performing as expected. Overall trading is in line with board expectations. Reacting to the drop, broker Baird suggested that the market was being cautious purely because previous positive CSS statements have failed to bear fruit, come results time. In 2003, turnover at CSS jumped 50.3% to £73m but pre-tax losses, due primarily to the write-downs, were heavy at £4.2m (pre-tax profit £6,000). A substantial increase in cashflow to £5m helped net debt fall £2m to £1.8m. Notable business in the current year includes the negotiations that brought Michael Parkinson's chat show to ITV and the negotiation of a sponsorship deal between American Express and Clear Channel Concerts. Kelly also emphasised that, while CSS stands to benefit from the upturn in the media and marketing sectors, the company's cost base has continued to fall. Baird is predicting pre-tax profits will hit £2.5m in 2004 with an EPS of 6.4p. The prospective p/e of 7.9 makes this previous GCI favourite worth another look - provided they can deliver on their word. Speculative buy.