Cordiant Chairman Follows Bungey And Jumps Ship

Chairman of Cordiant Communications, Charlie Scott, has stepped down after 13 years with the advertising group.

His departure comes just weeks after chief executive, Michael Bungey, announced his intention to leave the company in March next year to be replaced by David Hearn, currently chairman and CEO of the company’s US ad network, Bates World-wide (see Bungey Departs As Cordiant Profits Tumble).

Scott is currently leading the search for his replacement and according to a company statement: “Intends to step down once the current management transition is complete and the new chairman has been appointed.”

News of his departure comes as pressure grows on the group to reverse sharp share price falls that have seen Cordiant’s profits virtually halve due to the depressed advertising conditions. The company’s first half results show that 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%.

It is understood that 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.

Cordiant Communications: 020 7262 4343 www.ccgww.com

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