Difficult Second Half for Cagney

In the UK, marketing services firm Cagney has cautioned that the second half of the year could be less profitable than the first, as parts of its group begin to experience more difficult trading conditions as a result of the slowdown in the global economy.

In its interim statement made in September, Cagney reported an operating profit of £234k, compared with an operating loss of £180k in the first half of 2007.

However, its current forecasts indicate a modest operating loss in the second half of the year, and it says that a number of 'doubtful debts' in one of the group companies could bring the operating results for the year down to break even, or below.

In addition, two 'significant items of revenue' which the firm reported in the first half of the year, are unlikely to be repeated in the second half and this will impact on trading results.

Despite the caution, Cagney says that December is an important trading month, and revenue is still being generated that could help counter-balance the effects of any 'doubtful debt' provisions.

'We remain cautiously optimistic about the future. The harsh economic circumstances will undoubtedly bring opportunities to win new business, and next year the group will also benefit in full from the cost-saving measures which the new management team has already put in place,' Cagney said in a statement.

Alongside its research arm Tree, Cagney comprises another four businesses: Exedra (brand consultancy), Chick Smith Trott (advertising and design), Cubo (promotional marketing), and The Media Foundry (public relations).

Web sites: www.cagneyplc.com and www.treelondon.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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