Closures and start-ups hit Creston Group profits

Marketing group Creston may have rebranded its agencies Unlimited but it seems its bank balance is anything but after the firm revealed a 74% fall in pre-tax profits for the six months ending in September this year, down to £1.06m from £3.99m last year.
The company, which owns direct agencies TMW, the Real Adventure and EMO, said it had been was hit by a so-called “impairment of goodwill” of £2m over the closure of market research firm FieldworkUK.
Meanwhile, there was also £140,000 worth of restructuring-related costs and £224,000 in losses due to start-up costs of Search Unlimited, Real Data and Reflected Life.
However it is not all doom and gloom; billings were up 6% to £51.6m and revenue also increased, up 8.2% to £40.35m. It has also spent nearly £17m on acquisitions – £1m for a 27% in 18 Feet & Rising and £15.7m on digital and design consultancy How Splendid.
And a rather bullish Barrie Brien, Creston group chief executive, said: “I am pleased with both revenue and headline profit before finance income, finance costs and taxation being up 8% and a 5% growth in our dividend, despite the slower start to the first half.
“The group also made good progress against its five-year strategy broadening its Unlimited offer through a mix of acquisitions, investments, start-ups and partnerships and this strategic progress is underpinning a continuing strong new business performance.”
During the past two months TMW Unlimited has picked up business from both Vodafone and British Airways.