Shares in marketing agency Creston slumped over 20 per cent after the group warned that profits for the full year to the end of March would fall "slightly below" last year's £10.4m.
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Management says that new initiatives, such as a Hong Kong-based PR agency, failed to generate revenues as quickly as had been hoped. That, combined with delays in various projects and a spending hiatus in both the UK and US government healthcare sectors, resulted in the shortfall. However, chief executive Don Elgie points out that the group has been successful at winning new business, with revenues in the three months to the end of December having grown 22 per cent.
