NEWS28 June 2010

Creston hails ‘resilient’ performance for financial year

Financials UK

UK — Insight and communications group Creston has posted a slight drop in revenue for the financial year ending March 31, but CEO Don Elgie has hailed the firm’s “resilient performance against a challenging economic backdrop”.

Group-wide revenue was down 4% from last year to £80.5m and profit before tax dropped 3% to £13.8m.

The insight division, which includes research agencies ICM and Marketing Sciences, saw revenue fall 4% to £16m and reported profit before tax fall from £4.3m to £0.7m due to the closure of qualitative agency CML Research last year.

The remaining companies delivered like-for-like revenue growth of 1% over the course of the year, the firm said, and headline profit before tax for the division, excluding the impact of the CML closure, was up to £4.9m from £4.5m.

Don Elgie (pictured) paid tribute to the “excellent performance” of the insight division, but said “this does not allow us to be complacent about ongoing change in our industry. We continue to build our capabilities to meet increased demand for digital marketing, insight and health marketing”.

He added that in the new financial year, Creston is currently ahead of its performance last year.

Meanwhile, the firm has entered into a conditional agreement to sell its DLKW Group advertising business to Lowe for £28m in cash. Creston said that the sale would “significantly reduce” current debt levels and allow it to focus on more profitable sectors.