The Chartered Institute of Marketing (CIM) has revealed a loss of nearly £1m in its annual financial report – the first significant loss in the organisation’s 92-year history.
The size of the loss is expected to put the newly installed chief executive Peter Fisk under increased pressure. Fisk was brought in earlier this year to reinvent the organisation as a “hub” for senior marketers.
The CIM’s deficit for the year to June 30 was £954,000, compared with a loss of £8,000 for 2001/2. The organisation’s total income for 2002/3 was £16.2m. Income from commercial services, which include training and conference centre activities, fell from £7.6m to £6.8m.
The CIM, which has more than 60,000 members, is likely to come under further scrutiny by its trustees, since as a charity it is expected to make neither huge profits nor colossal losses. The results also reveal a deficit of £3.8m in the institute’s pension fund.
Outgoing CIM international chairman Mike Johnston says: “The significant losses reflect the changes that the institute is undergoing. We have invested in significant restructuring and investment to build the foundations of a new CIM. The underlying business is healthy, and our new five-year strategy will help the CIM to be the world’s leading professional body of marketing.”
Johnston steps down from his role next year.