Huntsworth reported a 5.4 per cent fall in like-for-like revenue at its PR agencies in the first half of 2018, explained largely by 7 per cent declines at Grayling after the "elimination of unprofitable client contracts".
In its first-half results announcement, Huntsworth cited a decline in profitability in Grayling Europe, due to one-off contract profits in the Middle East last year, and restructuring costs for the period. These factors offset improvements in profitability in the UK and US.
In a trading update released today, Huntsworth’s marketing division, led by Evoke, grew revenues by 2 per cent in the second half of fiscal year 2018, but annual performance is expected to decline by 3 per cent in the year to 31 December 2018.
It said Giant and Navience, which the group acquired in the past five months, have both integrated well and are increasingly engaged in joint new business with the broader Evoke group.
Overall, Huntsworth estimates it will show double-digit annual growth, led by strong results in its medical and immersive divisions.
It predicts that for the year to 31 December 2018, profit before tax will reach £29.4m.
