9th Jun 2015 07:54
LONDON (Alliance News) - Marketing company Creston PLC Tuesday posted a rise in pretax profit for its recently ended financial year, and announced it has bought 27% stake in London-based advertising agency 18 Feet & Rising Ltd for GBP1 million.
For the year to end-March, Creston reported a pretax profit of GBP9.6 million, up from GBP7.2 million a year before, as revenue rose to GBP76.9 million from GBP74.9 million. Revenue growth was driven by a strong performance from digital and online, which now makes up 55% of the company's revenue, compared to 53% a year before.
Creston undertook a re-branding during the year as part of its new five-year strategy, bringing its businesses under one 'Creston Unlimited' label. Communications and Insight revenue rose 5% during the year, boosted by contract wins including Activision Publishing Inc, Allianz SE and Sky PLC. In its Health segment, revenue declined 3%, hit by budget cuts at clients and project delays in the UK health business, the company said.
Creston proposed a final dividend of 2.85 pence, taking its total dividend for the year to 4.20 pence, up from 3.90 pence a year before.
Following the year end, Creston bought a 51% stake in digital design agency How Splendid Ltd for GBP8.7 million in cash. It will pay a further up to GBP7 million for the stake based on How Splendid's average profit before interest and tax between April 2015 and March 2017.
Creston said half of the GBP1 million it has invested in 18 Feet & Rising will be invested into the business to accelerate its future growth.
"We are encouraged by the early successes in our new strategy which give us a strong platform to deliver value to shareholders over the medium term," said Chief Executive Barrie Brien in a statement.
Shares in Creston are trading up 4.1% at 133.20 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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