| |
Profts Climb at Tree
In the UK, consumer behaviour consultancy Tree has seen gross profit rise 34.8% to £1.3m for the first half of the year. The firm is part of marketing services holding company Cagney.
For the whole group, Cagney has reported an 18.8% increase in gross profit to £4.4m for the first half of 2008, and an operating profit of £234k compared with an operating loss of £180k last year.
Profit before tax was £133k compared with a loss before tax of £436k for the same period in 2007.
The firm said that one of the biggest contributors to last year's loss was the very high level of central overheads - as much as £1.3m at the operating level. In recent months, it says it has taken action that will reduce central overheads by several hundred thousand pounds.
In May, Paul Simons resigned as CEO, and was succeeded by Tree co-founder Steve Mattey. In addition, Mark Phillips joined Tree as Commercial Director in February.
Mattey says parts of the group are beginning to feel the effects of the current difficult economic circumstances and warns that the second half of the year will be less profitable than the first. He continues: 'Nevertheless, I am cautiously optimistic about the future. With the economy struggling there is an increased need for companies to communicate even more effectively to customers and potential customers. Cagney is in a very good place to respond to this need.'
Cagney combines five businesses: Tree (market research and data analysis); Exedra (incorporating BrandAid as a division); Chick Smith Trott (advertising and design); Cubo (promotional marketing); and The Media Foundry (public relations).
Web sites are at www.cagneyplc.com and www.treelondon.co.uk .
|
