ICM Problems Fuel Creston Insight Revenue Drop

The Insight division of UK-based Creston has reported a 13% drop in revenue for the financial year ended 31 March 2013 - to £12.1m from £13.8m in the prior year period. The company says the results were impacted by problems the previous year at ICM Group, which it says saw a 'marked recovery' in the last two quarters.

Last year, the division - which delivers 16% of group revenue and also includes Marketing Sciences - reported a 7% drop in revenue, which it put down to problems at ICM. This deficit led to cost-cutting and restructuring measures which included the integration of face-to-face specialist Fieldwork UK with sister agency ICM Direct, and the scrapping of the role of ICM Group Chairman. In addition, cuts in headcount were made and a reduction in property and infrastructure costs was achieved through 'co-location'.

Creston said in a statement that these prior year cost reductions and structural changes had led to a 'marked recovery' in financial performance during the second half of FY13, with both revenue and Headline PBIT growth against both H1 FY13 and H2 FY12.

Last year, 45% of Insight revenue came from digital and online projects, up from 35% in the previous year. As a result of what Creston describes as this 'rapid technological change' during the period, the group says it has seen increasing client demand for all insights to be delivered through 'smart' reporting such as video storytelling, interactive online dashboards and activation workshops.

In addition, the group has established an Insight Innovations team to identify trends and recommend future investment opportunities - particularly around data collection. Alongside the division's focus on growing digital and qualitative research, Marketing Sciences will be expanding its sensory business and B2B work during FY14, while ICM will be launching a new initiative focused on helping clients with big data.

Overall for the group, Creston reported that revenue was up slightly to £75.2m from £74.9m last year. Group CEO Don Elgie (pictured) comments: 'The group delivered a solid performance overall, despite the difficult macroeconomic environment. We have continued to invest in product development, our people and our long term co-location strategy by consolidating our property leases across the group and by moving into one office in London this summer. We are confident that we have good momentum for a successful year ahead.'

Web site: www.creston.com .