NEWS27 January 2012
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Insight & Strategy
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NEWS27 January 2012
UK — ICM owner Creston reported “good” revenue growth at its insight division in the third quarter, following a 3% year-on-year decline in the preceding six months.
But with a shortfall of new business and delays to client projects, the group expects a fall in sales at ICM in Q4, and is reducing staff to cut costs.
In an interim statement published today the group said the expected drop in insight revenue will have “a direct impact on fourth quarter profitability”. Its cost-cutting measures, which will also address property costs, will not start to have an effect until the new financial year, it said.
Creston also said it has established a new healthcare consultancy, Vitaris, but that this will contribute less than expected to the business this year because its launch came later than planned.
In its last full year, revenue for Creston’s insight companies fell 7.5% to £14.8m, while the group as a whole grew. Alongside ICM the division includes Marketing Sciences and FieldWork UK.
This year the group expects to report positive full-year revenue growth again, but a slight fall in profit.
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