The corporate communication and event management companies business lost £4.1m ($8.2m [EBITDA]) in the year to June 2009. Photon said the businesses "suffered due to reduced client spend and exposure to M&A / equity raising market".
The firm did say, however, that it was expecting a "modest" recovery next year.
Overall the group posted positive results despite the wider economic gloom, increasing revenues by 7% on a like-for-like basis, and seeing profits rise 8%.
Sledge commercial director Ian Irving said that things had been difficult for experiential agencies, but the market was already showing signs of growth.
"There's no denying the crash in the market of consumer-facing activity," he said. "But internal comms business has been very positive and there are loads more pitches around already. The green shoots are there in the UK market."
The Photon Group, which also owns UK PR agencies Frank and Hotwire and Australian event firms ABT and Kinetics, reported an overall 22% drop in like-for-like revenue in its ‘specialised communications' division, which includes experiential and event marketing.
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