Media Square braces itself for full year loss
Media Square braces itself for full year lossMedia Square, the holding company for a host of UK marketing agencies, warned today that it is anticipating a full-year trading loss.
It said trading for the second half of the current year had been "significantly stronger" than in the first half thanks to cost savings from "restructuring undertaken in response to cuts in clients' marketing budgets".
But while the group believes it will be profitable in the second half of the year before exceptionals, its board now anticipates an overall trading loss for the 12-months ending 28 February rather than the small operating profit it had previously expected.
In a trading update, the group said it continued to be in discussions on the sale of two "non-core, profitable, business units". These would likely bring to an end Media Square's restructure, which started in September 2007.
The company said it was confident that following the full effect of the restructuring, the cost-base of the group would be "much lower than in previous years", enabling it "to build on the momentum of the second half of the current year".
Media Square agencies include The Gate Worldwide, IAS and Smarts.
New to The Drum
You will be sent a verification email. Click on the link in the email to post your comment.
Comments
I've never known a plc restructure itself so much, almost on an annual basis. I'm sure this will be welcome news to Dave Trott's CST who were recently bought by M.S.
Write Your Comment