Cordiant Confirms Demerger Plans

Cordiant today announced the demerger plans which will see it split into two separately listed companies – Saatchi & Saatchi plc and Cordiant Communications Group plc. The new shares will appear on the stock market on 15 December while Bob Seelert will become chief executive of the Saatchi & Saatchi group and Michael Bungey will be chief executive of the Cordiant group.

Saatchi & Saatchi will now be comprised of Saatchi & Saatchi Worldwide, PR outfit Rowland Worldwide, 70% of the Facilities Group, 50% of Zenith, ad agency Cliff Freeman & Partners and corporate consultancy firm Siegel & Gale.

Cordiant Communications Group will contain Bates Worldwide, ad outfit Scholz & Friends, marketing company HP:ICM, 30% of the Facilities Group and 50% of Zenith.

Cordiant’s interim results for the six months to June 30 revealed revenue of £359m (up 7.2%) and pre-tax profits of £20.2m (up 30%). Financial figures for each of the groups were also announced: revenue at Saatchi & Saatchi increased by 0.7% to £190.2m while pre-tax profits reached £7.6m; Cordiant Communications saw revenue fall 4.1% to £158.6m with pre-tax profits of £13.1m; revenue for the year to 31 December at Zenith was £48.7m with pre-tax profits of £7.1m. Cordiant Communication’s fall in revenue was blamed in part on the loss of the Miller account.

Cordiant: 0171 436 4000