23rd Jan 2014 10:46
LONDON (Alliance News) - Communications and marketing group Porta Communications PLC Thursday said trading in the final quarter of the financial year just ended was very strong, and in line with its expectations.
In a trading update before it releases its final results for the year ended December 31, 2013, the group said that during the last three months it produced a positive earnings before interest, taxes, depreciation and amortisation of around GBP650,000 after all costs, including start-up costs.
It said after adding back non-recurring costs, it achieved an annual earnings before interest, taxes, depreciation and amortisation run rate of approximately GBP4 million for the three months ended 31 December 2013.
The company said it believes it has now achieved its initial strategy to build a profitable global marketing and communications group predominantly by start-ups.
"While the directors expect there to be further small start-ups during the current year, the thrust of the second phase of the group's strategy will see a balance between organic and acquisition led growth," the company said in its trading update.
Porta Communications said its public relations division Newgate Communications achieved a number of new business wins throughout the year, particularly in the last quarter, supported by improved activity in stock markets and its growing international capability. It said it expects the division to show strong growth in 2014.
It also said that expansion into Asia Pacific has been successful, especially in Australia, and its two start-ups in Hong Kong and Singapore performed well in difficult market conditions, and it expects a positive contribution from both of these operations in the current year.
Porta Commmunications said the trading performance of its financial PR firm Newgate Threadneedle was boosted significantly by the increasing volume of initial public offering activity on the London Stock Exchange's AIM market towards the end of 2013. It said that this resulted in the division achieving a record year in terms of clients, fees and profits.
It said its consumer agency TTMV continued to trade strongly towards the end of the year, driven by good activity levels over the Christmas period.
Shares in Porta Comms were up 0.8% at 15.75 pence per share on Thursday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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