11th Feb 2015 09:23
LONDON (Alliance News) - Porta Communications PLC said Wednesday that it expects further strong growth in 2015, as it expects to post an around 35% rise in adjusted earnings for 2014.
It did not detail how earnings will be adjusted.
The marketing and communications company expects to post a rise in revenue of around 30%, with fee income set to almost double.
In its public relations division, Newgate saw strong growth, particularly in Australia although this was offset by the weaker Australian dollar which will hti Newgate's pretax profit by around GBP200,000. Redleaf PR also performed well, trading ahead of budgets on a month by month basis, Porta said.
In advertising its 21:12 agency has started to gain traction and is expected to post an improved performance in 2015. However, Porta has opted to discontinue media and creative agency TTMV as it failed to perform in line with its budgets despite restructuring and cost reductions. It does not expect any cash obligations with this to be borne by Porta, it said.
Instead it will expand its Summit business to take on further creative and account management capacity. This discontinuation of TTMV and expansion of Summit is expected to have an "immediate, positive impact" in the current year, which it expects to turn the business to a profit.
"The board anticipates further strong growth in 2015 throughout the group while margins are also expected to improve with its recent acquisitions operating from one central location," said Porta in a statement.
Shares in Porta are trading up 2.4% at 7.20 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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