Media Square, the marketing services group, has reported a pre-tax profit of £900,000 for the six months to August 31 compared to a £13.2m loss for the same period last year.
The profit comes despite a 3% decline in like for like revenue to £33.1m over the period, while group turnover also decline by 5% to £65.3m.
It says the declines are attributed to the resignation of a number of loss making client accounts and the dip in spending by ongoing clients.
Meanwhile, the company, which owns The Gate and CMW, says it has made a “small profit but a huge improvement” and it shows that the company is now “on track”. It comes after a major restructure of the business to focus on five professional disciplines – advertising, design, marketing, PR and research.
It adds that the “heavy lifting” of the restructure has now been completed but that it is still looking to reduce overheads and is beginning small scale organic growth with its existing portfolio of agencies. The Gate has opened an Edinburgh office, PR group Smarts has opened a new London office and design group Lloyds is building a global design and branding franchise.
Media Square chief executive Roger Parry (pictured) says: “Media Square is now a much simpler and stronger company than it was a year ago. We have a number new senior people in place. The recent new business record has been encouraging. The group is well positioned to grow profitably on an organic basis.”