Porta Communications records £1.5m annual loss

Porta Communications, the recently established AIM-listed comms business, recorded a £1.5m loss in 2011 after a year of investment and acquisition.

Jonathan Clare: Newgate executive chairman
Jonathan Clare: Newgate executive chairman

During the year, the group established Newgate Communications, led by executive chairman Jonathan Clare, and bought Threadneedle Communications (renamed Newgate Threadneedle).

Newgate has made a number of senior hires since its establishment in September 2011 and has grown to a team of 20 senior executives.

The group’s revenue topped £1m during the year, but operating losses increased from £523k to £1.57m.

David Wright, chairman and chief executive officer of the company, commented: ‘We continue to focus on creating true shareholder value by building a first class international marketing and communications group in line with our original business plan. The building of the group continues and benefits of this are now coming through strongly.

‘Newgate Communications continues to recruit quality executives and major new clients are being won on a regular basis, adding value to our public relations agency.’

He added that the group has ‘a very attractive portfolio of potential acquisitions covering a number of areas, such as advertising, media buying and public relations, that it is our stated intention to enter.’

Meanwhile, Porta Communications faces legal action from Media Square in respect of alleged losses incurred in respect of alleged actions to acquire the group before it was rescued by a management buyout.

A Porta statement read: ‘The board absolutely denies the claims made in the legal action and intends to defend its position vigorously and is confident that it will succeed should this matter ultimately come before the courts. Accordingly, no provision in respect of this matter has been made in the financial statements.’

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