Marketing communications group Media Square has reported a £14.1m increase in profit before tax over the past year.
The company, which owns design consultancy Lloyd Northover, has unveiled its interim results today, which show a profit before tax of £0.9m for the six-month period up to the end of August.
It reported a £13.2m loss in the same period in 2007.
Peter Reid, group development director for Media Square, says last year’s results were heavily influenced by ‘exceptional’ costs from restructuring the company, and by writing off businesses Media Square had bought from communications firm Huntsworth in 2006.
He adds, ‘We are now focusing on profitability and resigning from loss-making accounts. We are trying to address the issues that were dragging the holding company down to allow the design groups, like Lloyd Northover, to build.’
Media Square, which also owns design consultancies Arken, Four Ninety, Holmes & Marchant and Symmetry, reported a headline operating profit of £2m in the six-month period to the end of August. This was up from £0.7m in 2007.
The company’s debt has been reduced from £19.8m to £17.1m, but its revenue dropped from £35.2m to £33.1m.
Roger Parry, executive chairman of Media Square, says, ‘Media Square has now recovered from its period of over-ambitious and over-rapid expansion. Like other marketing communication groups, it faces difficult trading conditions and is taking action to ensure that the group is currently positioned for such conditions.
‘However, the fundamentals of strong business management are now in place and therefore the board is cautiously optimistic about future prospects.’