Insight Division to Buck Creston Revenue Dip

Insight and comms group Creston is expecting revenue for the three months to 30 June 2013 (Q1) to be 'slightly lower' than for the same period in 2012 - down 5% in like-for-like terms. However, the firm's Insight division expects to report an increase in revenue during the period.

Last month, the firm reported a 13% drop in Insight division revenue for the financial year ended 31 March 2013 - to £12.1m from £13.8m in the prior year period. Creston said the results were impacted by problems the previous year at ICM Group, which it says saw a 'marked recovery' in the last two quarters.

In an interim statement issued today, Creston said that for its first quarter, the Insight division continued recovery and growth, driven by additional revenue generated from using 'innovative' research technologies and digital platforms for data collection.

However, revenue in the Communications business was flat, and the Health division reported a decline in like-for-like revenue following the loss of a contract with Sanofi Pasteur.

Group CEO Don Elgie (pictured) says that while Creston's Board remains cautious, it is pleased with the continuing level of client demand for the group's digital capabilities, the increasing focus on cross-agency pitches, and several new business wins.

Elgie (pictured) comments: 'The IPA Bellwether Report on client sentiment towards increased marketing spend is the most encouraging for six years. At Creston we are seeing this being borne out by high levels of new business activity and while opportunities must always be converted, the level of pitching we are seeing is the highest I can remember. Based on our historic pitch to win ratio, we are confident that this will lead to further underlying growth in our client base.'

Creston's 2014 financial year commenced on 1 April 2013, and half year results will be issued in November.

Web site: www.creston.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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