2005 Agency Business Report: <strong>Gibbs & Soell</strong>

Coz Malozzi, CEO

2004 revenue: $14,754,600

2003 revenue: $13,773,300

Up 7%

Number of offices: Four in the US: New York, Chicago, San Francisco, and Raleigh, NC. Globally, European operations are headquartered in Zurich as G&S, and include Hind & Associates in London. Latin American and Pacific Rim partners include BitnerGoodman and Cosmo PR, respectively.

Staff numbers: As of March 2005, Gibbs & Soell employs 107 people, up from 104 in 2004 and 99 in 2003.

Staff turnover: 23 %

Senior hires: Claudio Pannunzio, VP, financial services practice leader, from Stan Adler Associates.

Senior departures: Patricia Harden, from our San Francisco office.

What region is growing? The Northeast, Midwest and Southeast regions are growing, on the strength of G&S' industrial, agricultural and consumer lifestyle/building products practices.

Changes in ownership: Doug Hampel, an SVP in Chicago, was named a shareholder of the company in 2004.

Number of practice areas: Five key market areas - agribusiness; building products; consumer lifestyle; financial services; industrial; healthcare; and technology.

Which are new? The financial services practice was launched in 2004.

What areas were strong? G&S enjoyed growth in the agribusiness, industrial, consumer lifestyle and building products practice areas. Technology experienced weakness.

Distribution of accounts across practice areas: Home and building, 35%; financial services,19%; industrial,15%; technology, 15%; agriculture, 8%; healthcare, 8%

Key account wins: Twelve, including Ellie Mae; The Flood Company; Georgia-Pacific Resins; Univation Technologies; Waterford Advisors.

Key account losses: Sprint PCS New York region.

Accounts expanded into new markets: Cargill Dow/NatureWorks business expanded into European offices.

Proportion of clients on a retainer: Three percent.

Did financial performance meet expectations? G&S' 2004 revenue growth, at 7%, was a leap from its 2% growth in 2003. The agency has recorded growth for 28 out of its 33 years in existence. Additionally, G&S' growth met top-line revenue target and exceeded bottom-line expectations.

Outlook: 2004 was a record-setting year for Gibbs & Soell on the innovations front, according to CEO Cos Mallozzi. The beginning of the year marked the formalization of its healthcare practice, and the first full year that the financial services practice was structured. "While they're both new to us, we've identified healthcare and financial service practices as the future growth of this agency," says Mallozzi. In 2005, the firm's plan is to increase as top line anywhere from 10%-14%, with the healthcare and financial services practices jointly bringing in an excess of $1 million in fees.

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