Creston announces six per cent revenue decrease in interim results

UK-listed marcoms group Creston has seen a six per cent decrease in revenue during the six months to 30 September 2009.

Creston CEO: Don Elgie
Creston CEO: Don Elgie

The group’s PR agencies include Nelson Bostock Communications, Red Door Communications and the newly launched health specialist Rock Medical Communications.

Creston announced a six per cent decline in revenues to £38.7m in the first six months of its financial year (down £2.6m compared with the same period in 2008), but has increased its headline profit before tax by one per cent to £6.3m.

Digital revenue now accounts for 31 per cent of the total group revenue (it was 25 per cent last year) and the group has also successfully raised £3.3m fundraising from existing shareholders.

CEO Don Elgie said: ‘We have continued to invest in our digital and online client offer, which has driven a 15 per cent increase in our digital revenues and meets our vision of providing clients insight and communications for the 21st century.’

He said that the revenue performance had varied across the group’s three divisions. ‘There was a growth of six per cent in Health and a one per cent decline in Insight for the continuing operations. Communications revenue declined eight per cent, which was less secure than the advertising market average.’

Redundancy charges in the communications division were reported as £314,000. The group closed its two research companies CML and MSTS.

In the past six months, Creston said its new consumer PR division of NBC had won work with Amazon, BBC, COI, Facebook and Mercedes, while Nucletron appointed Rock Medical Communications.

In February 2008, Creston announced the closure of its US office, less than a year after opening in the region.

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