Media Square is back to revenue growth

Media Square has reported a 15 per cent rise in revenues from last year, compared with the 23 per cent year-on-year drop it experienced in 2010.

The group, which operates design consultancies Lloyd Northover and Holmes & Marchant, has reported revenues of £45.4m, compared to £39.6m last year.

Revenues and operating profits in the group’s design sector have remained flat year-on-year, with revenues standing at £7.1m and operating profit at £300 000.

Media Square chief executive Peter Reid says, ‘Comparatively, the market in design is still feeling more of the challenges of the recession.’

The group says it is looking to improve digital capabilities in its design sector, as well as increasing the levels of shared resources across the consultancies. Reid says Media Square may look to appoint a digital head who would work across the group’s businesses.

Media Square chairman Roger Parry says, ‘Over the past 12 months the Media Square Group has made substantial progress towards our goal of being a focused and profitable group of marketing communications agencies.

‘The painful and long period of restructuring is over. The emphasis now is on continuing to win new business, improving margins and reducing debt.’

Media Square is still carrying an underlying net debt of £19.5m, although this is down from £19.9m in 2010. Last year it signed a new bank facility and also sold off businesses Arken and Twentysix.

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