Cordiant Reports Halved Profits

23 April 2002

Cordiant Communications will not be declaring a dividend for 2001, says chief executive Michael Bungey, after the debt-beset group belatedly posted pre-tax profits of £25.7 million ($37.23m; €41.98m).

Following repeated delays while Cordiant struggled to reschedule its debts, the accounts were posted Monday in tandem with the inking of an agreement with its bankers.

According to Bungey there is “very little revenue growth around”, which partially accounts for the group’s disappointing performance.

A goodwill writedown on acquisitions of £224.8 million also affected performance, as did an operating charge of £27.6 million, mainly redundancy payments. The latter, however, should result in cost savings of £30m annually.

At noon Tuesday, Cordiant shares on the London Stock Exchange stood at £0.825 - £0.045 up on Monday.

Data sourced from: The Times (London); additional content by WARC staff