‘No Growth Until 2002’, Warns Cordiant Chairman

27 June 2002

Cordiant Communications Group chairman Charles Scott revealed to Wednesday’s annual general meeting that revenues had plunged by 11% in the period January through May – a decline he attributed to last year’s relatively high levels of activity.

“Despite this,” Scott said, “the group has continued to meet its internal profitability targets as cost savings initiated in 2001 have been realised.” But he cautioned that a return to growth could not be expected for the remainder of this year.

Coincident with the meeting are reports that two Cordiant investors, Bryan Myerson and Julian Treger, are campaigning for a change in Cordiant’s senior management – and especially for the head of chief executive Michael Bungey, whose hotseat has become progressively hotter with a raft or recent account losses – not least that of the $160 million Hyundai account in North America [WAMN: 30-Apr-02].

Myerson and Treger have recently upped from 4.5% to 5% the stake in the advertising group held by their UK Active Value investment vehicle. Meantime, rumours of covert merger negotiations with Havas persist despite denials from both parties – a fact that could explain the pair’s stock hike in an ailing investment.

Data sourced from: BrandRepublic (UK); additional content by WARC staff