SELF-APPOINTED observer of the marketing services scene, accountancy firm Willott Kingston Smith, has published its annual survey of direct agencies’ financial results. The findings make mainly gloomy reading. Says WKS partner Steve Waring: ‘What we are seeing this year is a general industry-wide increase in activity and salaries at the expense of profit margins.’ Among the casualties are Brann, whose operating profit dived by 93% - a drop of £2.829m - whilst GGT Direct saw its gross income slide by £3.9m. Revenues at Aspen Direct and Craik Jones Watson Mitchell Voekel declined 94% and 98% respectively, and Limbo reversed last year’s £324k profit into a loss of (£279k). Bucking the trend were WWAV Rapp Collins, Grey Integrated, Tequila London and Evans Hunt Scott Eurocom - all recording increases of 50% or better.
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