Cordiant Losses Slide To £22m

Advertising group Cordiant has announced pre-tax losses of £22.6 million for 1995, compared to profits of £32.4 million in 1994. Loss of clients totalled £40m in annual revenue, with Saatchi & Saatchi particularly hit by client defections in the first half of last year.

Charlie Scott, Cordiant’s chairman, pointed out that although revenue had increased by 2.1% to £761.1m this did not compare favourably with Cordiant’s competitors who achieved revenue growth of 9.4%. He said that “the pattern over the last five years is of similar under performance.” Mr Scott believes however that “after a turbulent start in 1995, significant progress has been made and fundamental issues addressed. Financial stability has been restored for the first time since the late 1980’s.”

Future targets include an improvement in operating margins and a dividend payout in 1996, revenue growth for 1997 in line with growth in advertising expenditure in Cordiant’s major markets and operating margins of 10% by the end of 1998.

Cordiant: 0171 436 4000