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Creston Closes US Operations
UK marketing services group Creston has axed its New York office at a cost of around £600,000, forcing US CEO Steve Blamer to step down because of uncertain economic conditions.
Creston's US office was launched ten months ago when Blamer was appointed to drive the firm's strategy for Stateside expansion (www.mrweb.com/drno/news6650.htm ). Because of global economic volatility, the firm's Board put expansion plans on hold last November, and has now decided to transfer the task of promoting its offering to American clients to its London head office.
In an interim management statement, Creston reported its overall revenue growth at 20%, with an 8% rise in like-for-like sales for first three quarters of the year. However, the firm said its increased investments in existing operations have caused a lower profit on incremental revenue and a decline in the headline operating profit margin year-on-year to 17% from more than 18% for the April to December period.
The company added that its continued investment in digital and online resources is expected to result in a lower profit conversion and therefore a small reduction in the full-year operating profit margin, but it expects full year revenues in line with broker forecasts.
Creston, which acquired market research group ICM in 2006 - comprising ICM Research, ICM Direct and Fieldwork UK (www.mrweb.com/drno/news5422.htm ) - and last year posted a 60% growth in revenue to £69.7m (www.mrweb.com/drno/news6903.htm ), is on the web at www.creston.com.
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