Media Square restructures following “dire” performance

Media Square, the marketing services group, is restructuring after admitting its trading performance has been “dire” and †it has suffered from an “over aggressive acquisition strategy”. The group has reported a 14% drop in group sales to £85.3m for the six months to August 31, which is 4% dip on a like-for-like basis.

Roger Parry, group executive chairman, has outlined plans to restructure the company into three “core” divisions – advertising/PR, marketing and design – and closing or merging a number of “sub-scale and loss making” business units. The changes aim to increase new business and operating margins.

Parry, the former chairman of Clear Channel joined the group, which owns digital marketing agency Twentysix and below-the-line agency CMW, in July this year following the departure of chairman Kelvin Mackenzie and chief executive Jeremy Middleton in March and June.

He says the group has had a “torrid time” and attributes its problmes to an over-aggressive acquisition strategy, under-managed operational integration effort and years of corporate confusion. He adds: “These problems were mostly of the company’s own making, rather than as a result of market conditions.”

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here