WRG sees overall loss despite turnover boost

WRG Worldwide has reported a 15% increase in turnover for the year to 31 October 2014, however restructuring and set-up costs meant the agency ended the financial year with a total loss of £1.67m.

Chief executive David Sharrock said the board is satisfied with the figures
Chief executive David Sharrock said the board is satisfied with the figures

The business brought in more than £56.8m in turnover, up from £48.3m in 2013, according to its latest accounts filed at Companies House. It ended the year on a loss of £1.67m, while loss on ordinary activities before taxation stood at £1.49m - an improvement on the £1.51m figure seen in 2013.

Operating profit came in at £501,000, before interest payments to shareholders and its private equity firm, and ‘exceptional items’. These were named as payroll costs as a result of restructuring, and set-up costs in relation to the US office.

In 2013, exceptional items related to the relocation of both the Manchester and London offices.

Turnover from the UK business increased almost £10m, from £21.8m to £31.7m, however business from the rest of the European Union fell from £4.08m to £423,000. 

In his strategic report, WRG’s chief executive David Sharrock, stated the board of directors is satisfied with the improved trading performance of the business. He said: "[The board is] continuing to make the necessary changes to the business to bring about long-term sustainable growth and profitable trading.

"The group grew rapidly during 2012 on the back of the London Olympics and several large product launches. Management have now focused the company on growing sustainable accounts in a number of sectors whilst managing job profitability and staff utilisation."

Sharrock added that 2014 saw the group establish a Swiss and US operation, and has strengthened its management in Asia "in anticipation of growth." Since the year end, WRG restructured its operations in the Middle East to increase efficiency – culminating in the closure of its Qatar office.

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