22nd Sep 2015 10:28
LONDON (Alliance News) - Porta Communications PLC Tuesday reported a swing to a pretax loss for its first half as a result of higher operating and administrative costs, although revenue rose 75%.
The marketing and communications firm reported a pretax loss of GBP1.1 million for the half year to end-June, swung from a restate pretax profit of GBP169,604, despite revenue rising to GBP17.4 million from GBP9.9 million, as a result of a step up in operating and administrative expenses.
Porta has restated its previous year results to exclude operations that were discontinued in 2014.
Porta said it has reviewed its PR division and opted to close smaller non-performing offices in Brussels and Germany, and some other less successful departments which has led to cost savings of around GBP1 million. It expects the full benefits of this rationalisation to be recognised in 2016.
Additionally, it integrated its non-consumer PR businesses under its Newgate brand, except for Redleaf Communications.
In its Advertising Division Porta said it has increased the levels of business it undertakes with its larger clients, and it expects the division to "make a more meaningful contribution" going forward.
"We are recruiting high quality, experienced executives in key areas, and management is confident that this will lead to further new business wins in the second half, leading to another strong performance in reported EBITDA," said Chief Executive David Wright in a statement.
Shares in Porta were down 9.7% at 7.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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