Design profits down at Incepta

The board of international marketing services group Incepta still has confidence in its design and branding division, and expects investments in it to pay off soon, despite the division’s profits dropping by two thirds, says a group spokesman. At the same time, overall group operating profits have increased by more than 100 per cent.

The group’s interim results for the six months to the end of August were published this week. They show the design and branding division turning in an operating profit of £100 000, compared with a figure of £300 000 for the same period last year. Gross revenues for the division were £5.1m. It includes design groups such as Citigate Lloyd Northover and Su Yeang Design in Singapore.

‘The division has always been the smallest part of the group,’ says an Incepta spokesman of the design and branding performance. ‘It hasn’t yet achieved critical mass. The intention of the management is to build this.’

Further acquisitions of design consultancies in Europe and Asia are planned, says the spokesman. He adds that no disposals of design consultancies are planned.

According to group chief executive David Wright, ‘Further investments… give us confidence for the future.’

Overall, Incepta Group gross revenue grew by 73 per cent to £63.8m, with profits before tax up 103 per cent to £14.2m. In total, 45 per cent of operating profit was made outside the UK.