According to Willott Kingston Smith’s survey (DW 1 October), Interbrand Newell and Sorrell performed very badly, with a trading loss of £1.1m in the year to 31 December 1997.
These figures were not representative of the results of our business. There are two corrections to make, both of which are a consequence of the merger of Newell and Sorrell with Interbrand UK during 1997.
First, the results of Interbrand Newell and Sorrell should be combined with those of Interbrand UK, as the two companies trade together as one business. This adds £1.8m to operating profit during 1997.
Second, the merger was structured so that a large proportion of the acquisition costs were funnelled through the profit and loss account of the company. In 1997 these costs were £2.4m.
So, instead of an operating loss of £1.1m, an operating profit of £3.1m was generated. This would put Interbrand Newell and Sorrell at equal second rather that 30th on the list!
Interbrand Newell and Sorrell