Revenue Fall for Creston Insight Division

UK-based Creston has reported a 7.5% decline in its Insight Division revenue to £14.8m for the year ended 31 March 2011 from £16m last year, while headline profit before interest and tax dropped from £4.9m to £4.1m. However, other divisions helped the group as a whole to grow.

Founded in 2001, Creston comprises three divisions: Insight, Communications and Health. Insight, representing 22% of group revenues, includes the firms Marketing Sciences and ICM. With good performances from the Communications and Health divisions, Group revenue increased 11% to £67.8m (2010: £61.3m) and pre-tax profit rose 66% to £8.4m from £5.0m, while net debt of £24.9m last year was converted into net cash of £0.05m.

Creston says the Insight division began the financial year facing a period of 'significant challenge', following the departure of ICM's founder Nick Sparrow and MD Matt Burn and Director Gary Muncaster. The company responded by hiring a number of senior directors, which it says has led to ICM's turnover experiencing only a 'small decline'. In addition, it says public sector spending cuts have dented performance.

ICM also saw a lower gross margin on increased data collection costs during the period. However, the group says that following the re-structure of its senior management team, it remains confident heading into the 2012 financial year.

During the year, Creston sold its advertising business DLKW Group for £28m, and acquired the trade and assets of New York-based healthcare PR business Cooney/Waters and its subsidiary, Alembic Health Communications for an initial cash consideration of £5.9m.

It also launched Creston Unlimited, a creative brand and innovation consultancy, which is tasked with solving specific brand problems such as developing new products and managing brand portfolios.

Don Elgie, Group CEO, commented: 'In the last 12 months, we have transformed the shape and balance of the group organically and by acquisition to increase our exposure to digital and international. We believe that our strong focus on the highest growth areas within the insight and marketing communication sectors, coupled with a growing client list of exceptional quality, positions us well for the next year and beyond.'

Web site: www.creston.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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