MKM remains postive despite loss

ACQUISITIONS by sales promotions firm MKM Group have doubled revenues but the group still slipped into the red last year.

Turnover at the Manchester-based company rose from £3.8m to £6.9m in the 12 months to March, but it made a pre-tax loss of £249,000, compared with a profit of £456,000 last time.

AIM-listed MKM blamed this on a poor second-half performance at the Leapfrog Group, the Sydney-based business it acquired for £8.9m in August 2007.

During the 12 months it also bought London-based Promodus, which specialises in marketing for the financial services sector. Chairman Andrew Johnson said the figures reflected a “transformational” year and the larger group provided it with a strong base.

He added: “The  company  entered the current financial year with a larger and broader business base and greater critical mass in key areas such as information technology and product development. Whilst it has taken longer to achieve our targets than we had hoped at the time of the acquisitions, we now have a good platform upon which to build.”

Mr Johnson admitted business had been slow in the second half but said that current economic conditions could provide opportunity.

“Traditionally, in a tough economic climate, the market focuses more on exploiting sales promotion and direct marketing tools which have measurable results. We view prospects for the group positively despite the difficult economic environment.”