Cordiant Sees No Return To Growth Until 2003

Trading conditions remain challenging and a decline in revenues is expected during 2002 at Cordiant Communications, the advertising and communications company’s AGM was told yesterday afternoon. The company said that it does not expect its markets to return to growth until 2003.

Revenues for the first five months of the year declined by 11%, in line with expectations. Cordiant says that this decline reflects the relatively high levels of activity it experienced during the same period of 2001; internal profitability targets are still being met, it says.

“Many of the markets in which we operate are still difficult and we continue to reduce costs where appropriate. In the current revenue environment our focus is on tight cost control to deliver a recovery in earnings. The Group’s target remains a 50% improvement in operating margins in 2002,” said the statement.

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