Creston, the U.K.-based communications holding company, posted an 11 percent gain in revenue to £74.9M for the fiscal year ended March 31, boosted by its healthcare sector PR acquisitions of Cooney/Waters and The Corkery Group.
Profit after tax was flat at £7.5M.
Among its three divisions, communications rose five percent to 43M, health jumped 53% on its Corkery deal and a full year of revenue fom Cooney/Waters, and insight (marketing research) declined seven percent to £13.8M.
“Naturally, we remain cautious in these challenging macro-economic conditions,” saidCEO Don Elgie, who added that Creston is confident in its strategy of focusing digital and other high-growth areas, as well as international expansion to serve blue chip clients.
Creston said a revenue shortfall in the fourth quarter was caused by fewer new business wins and reduced client budgets, adding that reductions were made that caused a restructuring charge of £1.8M. The moves were expected to save £3.1M.
Uncertainty over healthcare reform in the U.S. and reduced spending in the healthcare sector saw revenue decline in the space, but Elgie said the long-term fundamentals are good in the U.S. and U.K.
Creston paid $6M to add Corkery to Cooney/Waters in November but earn-outs are slated for 2013 and 2015 which are expected to fall in the $5M realm with another $1.8M likely in payments to “key employees.”
Key healthcare clients of Creston are Sanofi and GSK.