Creston, the marketing services group that owns Delaney Lund Knox Warren, is axing its US operation after less than a year. The move means Creston US chief executive Steve Blamer will leave the company.
Blamer (pictured, left), a former FCB Worldwide and Grey London chief executive, was appointed in April last year to lead an acquisition drive in America. He had a brief to replicate the “buy and build” strategy employed in the UK.
But in its six month results to September 2007, it reneged on plans and announced it had decided to put acquisition plans on hold and focus on organic growth due to the tough economic environment (MW.co.uk., November 30, 2007).
The group says: “The global economic uncertainty and volatility has only increased since the interim statement and more so in the USA than in most other countries.”
Creston will issue a more upbeat outlook for the group in its quarter three trading statement released today (February 18). It has reported revenue growth of 20% for the nine months to December 31, including its acquisitions, and an increase of 8% on a like-for-like basus.
The group adds: “This continued growth has been achieved despite the present volatile economic environment and given the structural shift from off-line to online which is taking place within the industry.”
The group has also formed a digital forum and healthcare board to reduce costs and improve efficiency across projects. Creston, led by group chief executive Don Elgie (pictured, right), also owns direct shop Tullo Marshall Warren (TMW) and PR agency Nelson Bostock.