Hasgrove profits from the downturn

CONTRACTS with Coca Cola and the Bill and Melinda Gates Foundation are helping marketing and communications services group Hasgrove defy the downturn with pre-tax profits up to £2m in the first half of the year as it continues to look for acquisitions.

The Manchester-based group’s focus on crisis management has brought in more clients as firms in the banking and finance sector have looked to manage their reputations during the credit crunch.

Turnover increased by 62% to £16.4m with pre-tax profits reaching £2m in the six months to June 30 compared to £1.1m for the same period the year before.

Chief executive Rod Hyde, said the group’s public affairs and corporate communications division had been strengthened with the addition of a London office following the acquisition of Politics International in February.

“Our digital and communication services operations, which have been integrated under the Amaze brand, are working well together and we are seeing a number of encouraging cross-functional wins.

“Despite the general market conditions the group has continued to win and retain significant contracts due in part to the counter cyclical nature of crisis management as well as an increasing move to online marketing. We remain confident of another successful year, particularly given the high visibility of earnings.”

Hasgrove employs 350 people, of whom 220 are based in the UK.

Its operations in the North West include Cheshire-based Amaze, PR firm Connectpoint and design agency The Chase which both have offices in Manchester, Preston and London.

Amaze has clients including Toyota, Coca Cola and Norwich Union.

The public affairs and corporate communications division includes Interel, Cabinet Stewart, Politics International and Odyssey and has offices in Brussels, Berlin and Paris and boasts clients including the Bill & Melinda Gates Foundation, Danone and the US Chamber of Commerce, which is the largest lobby in the USA.

Hasgrove is now providing branding advice, online and offline advertising, PR, website development and search engine optimisation to GMPTA (Greater Manchester Public Transport Authority).

Looking ahead, Mr Hyde said: “Research shows that online marketing will continue to grow with Forrester predicting double digit growth this year. PR is also taking a larger part of the communication spend. Moreover, Hasgrove has the benefit that corporate communication, including public affairs, is less susceptible to an economic downturn.”