LONDON: Holding company Huntsworth is nearing the end of a rebudgeting process that will result in a one-time restructuring cost of about $4.7 million, the company said Tuesday.
The UK-based company said in November that it was seeing various year-end cancellations because of economic uncertainty and that it would take cost-cutting measures in response. In Tuesday's pre-close trading statement, Huntsworth said the budget process was “in line with reducing the cost base."
"We had some project cancelations in Huntsworth Health US, where clients switched Q4 budgets into other marketing spend, such as TV advertising," Sally Withey, COO and finance director of Huntsworth, told PRWeek. "This returned to the group in Q1 2012."
Huntsworth's US agencies include Grayling, Dutko Grayling, Atomic PR, Grayling Connecting Point, and Rose & Kindel. Withey declined to comment on which US agencies and clients were affected by the cancelations.
"US markets feel somewhat more positive than elsewhere in the world, although we should not disregard the gloomy macro-economic climate," she added. "Global group contracts are producing new revenues for the group in 2012, including elements that are being delivered in the US. Digital revenues, particularly in our US healthcare agencies, are also strong."
Huntsworth also said Tuesday that Colin Adams will step down as finance director on April 30. He was appointed to the role last April. Withey will take on Adams' responsibilities.
A Grayling USA representative referred comments to Huntsworth.
*Figures were converted to US dollars using XE's currency converter.