Bungey’s Departure Confirmed As Cordiant Profits Tumble

The confirmation of Bungey’s departure comes as Cordiant’s first half results show that profits virtually halved due to the depressed advertising conditions. Pre-tax profit before exceptional items and goodwill was down by 48.0% year on year to £11.5 million. Revenues decreased by 12.0% on an underlying basis and operating profit was down by 30.8%.

Bungey said that the depressed trading levels persist throughout Cordiant’s markets, adding that there are currently no signs of improvement. Extensive cost-cutting has been set in place and will continue where necessary, he said in a statement.

The company’s figures have been heavily impacted by a substantially reduced spending from its clients. The group lost a number of big accounts including Wendy’s International and the Hyundai business handled by Bates.

Shares in Cordiant Communications have fallen dramatically in recent months as a result of the loss of business and falling profits. At 10:30am today the share price was up 1p at 48½p.