NEWS28 November 2012

Creston’s insight operations see revenue fall

Financials UK

UK— Creston’s insight businesses, which include ICM and Marketing Science, have seen a £2m drop in revenue in the six-month period leading up to the end of September.

The insight division posted revenue of £5.5m for the six months, down from £7.5m the previous year. Despite the drop, Creston said that revenue for the division was “stabilising” and showing some signs of growth compared to last.

Profit before income tax was £0.04m, down from £1.7m, which Creston said was “expected” but the firm was still disappointed with the figure, which it said was caused by slower recovery and weaker gross margins at ICM.

Creston said: “While ICM’s recovery is slower than originally expected, both revenue and headline PBIT are expected to grow in the second half as a result of improving commissions and the swift cost-cutting and management actions, which have been ongoing since the last financial year.”

New client wins over the period included the Internet Advertising Bureau, Velux, Gomez and the North West Public Health Observatory.

Groupwide, Creston saw revenue rise 2% to £37.2m from £36.5m last year, with “strong performances” from the communications and health divisions.