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Strong Growth for Creston
Insight and communications group Creston, which owns market research agencies ICM and CML, has reported a 25% rise in profits for the year ending 31 March 2008, and says it has yet to feel the impact of the economic downturn.
 Its Insight Division, which accounts for 22% of group revenue, delivered a 16% revenue increase to £17.9m (2007: £15.4m), while PBIT (profit before interest and tax) increased by 20% to £5.2m. This growth was generated by a full year consolidation of ICM (acquired in May 2006) and like-for-like revenue growth of 9%.
Headline PBIT margin remained high at 30% (2007: 33%), although some decrease was caused by the continued investment in online research and the recruitment of a number of senior industry experts to help facilitate future growth within the division.
For the Creston group, full sales for the year were £80.5m, up from £69.7m - reflecting organic growth of 8%, which the firm says was underpinned by new business wins valued at £9m.
Pre-tax profit, which does not include the impact of acquisitions and the cost of closing its US office, rose 2% to £13.5m, while reported pre-tax profit rose 25% to £9.6m.
Commenting on the announcement, Group CEO Don Elgie said: '2008 has been a year of consolidation, investment and strategic evolution and we believe our diversified model and recent initiatives give a strong platform to continue our record of growth in 2009.'
Elgie added that despite the 'current pessimism' among economic commentators the firm is yet to feel any tangible effects. 'The tell tale signs of cut backs and delayed expenditure have yet to have a material impact at group level, indeed in the last quarter of the year we saw revenue increase 6% on a like-for-like basis. We are confident that the group is well positioned for an economic downturn.'
However, despite investment in new initiatives including online panels, extra headcount in digital departments and new corporate PR and international healthcare PR operations, the group says it is also exploring opportunities to cut costs.
Web sites: www.creston.com, www.icmresearch.co.uk and www.cmlresearch.com .
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