Strong Growth for Creston Insight Arm

UK-based insight and comms group Creston has reported results for the six months ending 30th September. Overall revenue fell 4.0% year-on-year to £35.7m, and headline EBITDA from £5.4m to £4.6m, but the Insight division grew revenue by ten percent to £6.1m and improved profitability.

Headline PBIT for the Insight division was £1.1m, up from just £40k the previous year, and margin well up at 18%. Marketing Sciences 'continues to show very strong growth on the back of a major retail client', while ICM continues its recovery after problems in 2012. However Creston noted that its small healthcare research consultancy Vitaris had been closed, blaming its 'lack of critical mass in the highly competitive area of healthcare research'.

In the Health division itself, revenue declined to £9.7m from £11.0m, and Headline PBIT to £1.5m from £2.6m. A bright spot was the launch of new brand and creative consultancy Loooped.

At the Group level, Creston says a number of major new business wins will start to benefit it in the next quarter: the 6-month period saw net new business wins with annualised revenue of £7.9m, compared with just £3.1m a year previously - and a further two major contracts have been won since September 30th. The proportion of revenue from digital and online work grew from 45% to 52%. In geographical terms, the UK businesses performed well (revenue up 3 percent), off-set by expected declines at US firm the Cooney Waters Group, which also has new clients and expects a stronger second half.

During the past year, Creston has consolidated its teams and now has eight property leases instead of twenty.

Group CEO Don Elgie (pictured) comments: 'Revenue and profits for the six months are lower than previously anticipated, primarily as a result of volatility related to the phasing of some client work across the Group and the exceptional amount of time incurred in new business activity. It has been a successful first half for the Group in many other respects... As in previous periods we anticipate increased revenues in the second half of the year, with full year revenues being broadly flat year-on-year.' Elgie says the Group is 'well-positioned for future revenue and profit growth' in an industry with improving prospects.

Web site: www.creston.com .