Global marketing group, Cordiant Communications, today warned that the recent economic slowdown, and in particular the decline of the technology sector, will impact this year’s profits.
Speaking at the AGM, chairman Charles Scott said that in the light of these more difficult trading conditions, job cuts have been made in a number of Cordiant’s businesses. The group’s overall profitability will be impacted, although margins for 2000 are expected to improve as a result of the job reductions. Revenue growth for 2001 as a whole is now expected to be in line with the market.
Revenues increased by 54% to £513 million, with underlying growth of 12.6%. Operating margins improved to 12% from 10% in 1999; operating profits increased to £61.4 million, up 84%. Headline earnings per share increased by 29% from 8.2p to 10.6p.
Cordiant is the world’s ninth-largest global marketing communications group, with over 14,000 employees in more than in 81 countries.
By late afternoon shares in Cordiant Communications were down 25p at 219½p following the statement.
