Huntsworth and Chime suffer client cancellations

Huntsworth and Chime Communications, two of the leading UK marcoms groups, have both warned the market about their outlook as key clients have cut multimillion pound comms programmes.

Lord Chadlington: change in sentiment hit in October
Lord Chadlington: change in sentiment hit in October

Huntsworth saw a third wiped off its value in the past week after its interim statement on 18 November revealed the cancellation of more than £4m of project fees.

Huntsworth CEO Lord Chad­lington said the agency started to feel a change in sentiment in October, and to really feel the impact in November.

‘The whole situation has changed significantly over the past few weeks,’ said Chad­lington, pointing to consumer durables, electronics and healthcare as markets facing particularly tough conditions.

Chadlington suggested that clients were reluctant to pay for any additional support over their retainers and were expecting an even higher level of over-servicing.

On 8 November, Chime announced that it was being forced to cut staff and property costs after losing lucrative work with the US government.

Chime chairman Lord Bell said: ‘This has affected one of our public relations businesses. As a consequence, we have moved quickly to reduce costs, mainly people and property, which has resulted in one-off restructuring costs in 2011.’

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Latest Articles

Home Office brings in Munro & Forster to campaign against FGM

Home Office brings in Munro & Forster to campaign against FGM

The Home Office has tasked Munro & Forster (M&F) with supporting its campaign to eradicate female genital mutilation (FGM) as part of a wider retained brief.

Former White House press secretary Dee Dee Myers to join Warner Bros

Former White House press secretary Dee Dee Myers to join Warner Bros

Warner Bros has appointed former White House press secretary Dee Dee Myers as EVP for worldwide corporate communications and public affairs, effective September 2.

Max Clifford trial jury loses second member as deliberations enter third day

Max Clifford trial jury loses second member as deliberations enter third day

The jury in the trial of celebrity publicist Max Clifford is down to 10 people after another juror was discharged this morning, on the third day of deliberations about its verdicts on 11 charges of indecent assault.

Edelman takes a ride on Branson's slow-motion space adventure

Edelman takes a ride on Branson's slow-motion space adventure

Virgin Galactic is probably on every PR agency's dream assignment list, but previous delays to Richard Branson's space venture suggest it may not be a complete blast.