Creston falls on thrifty clients

Creston's larger retail and consumer technology clients slashed marketing spending in response to weaker trading. Together with the weaker euro, that meant like-for-like revenues only rose 1 per cent. Underlying sales rose 4 per cent to £28m in the key communications division, but they slid 6 per cent in the health business as clients clamoured for patient-focused campaigns.

The group encouraged its agencies to cooperate and pitch for more complex and international accounts. The upshot was that more than a third of the group's top 50 clients worked with at least two Creston businesses in the period. It also attracted clients such as Costa Coffee, and British Airways recently selected the group to advise on its customer relationships and data strategy.

During the period Creston filled gaps in its service range by acquiring a digital design consultancy and taking a sizeable stake in an ad agency. It also struck three partnerships to gain exposure to global consumer trends, digital strategy and US healthcare communications.

Broker Liberum expects pre-tax profits of £11.2m in the year to March 2016, giving EPS of 13.3p (from £9.9m and 13.1p in FY2015).