Creston revenue up 11% for fiscal year

LONDON: Creston, the owner of Cooney/Waters, reported a revenue increase of 11% to approximately $116.3 million for the year ending March 31.

LONDON: Creston, the owner of Cooney/Waters, reported a revenue increase of 11% to approximately $116.3 million for the year ending March 31. The company saw a profit of about $11.6 million during the fiscal year.

Creston agency Cooney/Waters acquired the Corkery Group last November for $6 million, which “was immediately earnings enhancing” according to the holding company. Creston added that its overall revenue was “driven predominantly by a full year's contribution from Cooney/Waters and the acquisition of the Corkery Group.”

Creston's communications division accounts for 57%, or $66.8 million, of its revenue. Its health unit, of which Cooney/Waters is a part, earned 24% of overall company revenue ($28.1 million), while its insight research unit accounted for 19% or $21.5 million. Revenue from digital and online accounted for 41% of Creston's business during the fiscal year.

The holding company said in an earnings statement that it won work from BBC, T-Mobile, and the World Hepatitis Alliance during the fiscal year.

However it noted that business slowed down during the fourth quarter of the fiscal year.

“Following good like-for-like growth of 5% over the first three quarters of our financial year, the final quarter's revenue performance in certain operating companies was impacted by a shortfall in new business and client budget,” the company said in an earnings statement. “Compounding this revenue shortfall versus management's expectations in the final quarter was a cost base that reflected increased staffing levels for the revenue growth experienced earlier in the year. Consequently, where agencies were impacted by the lower sales levels, immediate actions were undertaken to realign the cost base for improved future profitability.”

In addition to Cooney/Waters and Corkery, Creston also owns and operates Red Door Communications, Colombus Communications, Nelson Bostock Communications, and Rock Medical Communications.

Cooney/Waters reported 2011 revenue of $20.1 million.

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