Creston's Insight Arm Reports 7% Drop in Revenue

The Insight division of UK-based Creston has reported a 7% drop in revenue to £13.8m for the year ended 31 March 2012, compared with £14.8m in 2011. During the period, headline pre-tax profit was almost halved from a year ago at £2.1m, down from £4.1m.

Founded in 2001, Creston comprises three divisions - Communications, Health and Insight - with the latter comprising agencies Marketing Sciences and the ICM Group.

Commenting on the division's results, CEO Don Elgie (pictured) explained that ICM and Marketing Sciences had delivered 'contrasting performances' during the year.

'Rebranded, and with greater embedded digital expertise, Marketing Sciences grew both revenue and Headline PBIT. ICM however, experienced a shortfall in revenue against management's expectations during the fourth quarter of the year as a result of a shortfall in new business and a decline in some client activity, which produced a drag on performance for the division as a whole,' he said.

This deficit has led to cost-cutting and restructuring measures in the MR division including the integration of face-to-face specialist Fieldwork UK with sister agency ICM Direct, and the scrapping of the role of ICM Group Chairman. In addition, cuts in headcount were made and a reduction in property and infrastructure costs was achieved through 'co-location'.

The Insight division is now led by Marketing Sciences MD Keith Bates, while former ICM Group Chairman Justin Sampson has recently been appointed CEO of UK television measurement body BARB.

The Creston group as a whole reported an 11% rise in revenue to £74.9m (2011: £67.8m), while headline PBIT was steady at £10.3m (2011: £10.4m).

Web site: www.creston.com .