As everyone in publishing knows, when the downturn bites, revenues suffer, as companies cut advertising and marketing budgets.
But despite feeling the effects of the downturn at the end of last year, public relations specialist Incepta says business has picked up. The company says it has experienced some growth and is expecting positive annual results next Tuesday.
The group, which owns financial PR consultant Citigate, said it expects profits before tax, goodwill and exceptional charges to be in line with market expectations for the year to February 28.
Revenues in its financial, corporate and public relations subsidiaries have ‘shown continued growth’ in the US and Europe. The UK has in fact experienced increased growth in the past year.
Finance director Mike Butterworth will be looking intently at Incepta’s PR operations in various sectors and will be hoping to see some results from the restructuring programme undertaken.
Last month, the company was confident the cost-cutting programme would have positive results. It said: ‘Incepta is set to meet current year estimates despite the marketplace in the second half of the financial year remaining weak.
‘Appropriate action has been taken both to proactively manage the existing cost base. The action taken on the cost base during the financial year under review will have a positive impact on future profitability, even assuming no year-on-year growth in revenues.’
In financial PR, Butterworth will focus on the relationships the company has retained. It will look at the new clients and its merger and acquisition projects, which have until now generated increased income.
But he will be more worried about Incepta’s projects in launching companies on the market, as a drop in companies floating on the stock exchange has kept the company’s IPO-generated revenues weak.
The technology PR businesses are expected to do better despite continued difficulties in the sector, as indicated by more stable revenues in the US during the second half of the year.
The company also expects its corporate advertising business to do well, although the US and UK businesses have experienced a decline.
Butterworth, who became FD last July, will also be gauging the value of Incepta’s new acquisitions, UK research and management consultancy Hauck Research Services Limited, bought last November, and Global Intelligence and Security LLC, a US-based business intelligence, investigation and control company.
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