Shares up as Hasgrove posts bumper profits

MARKETING group Hasgrove is defying the doom and gloom to post a bumper hike in profits as it revealed more than 20 job losses.

The news sent its shares soaring more than 17% to 92p in early trading.

The Manchester-based group said its strong performances in its corporate affairs and digital and communications businesses has seen pre-tax profits for the year to December 31 soar 57% from £2.4m to £4.2m.

Turnover for the period rose a whopping 68% to £36.5m, while its new debt reduced from £7.5m last June to £6m.

The public affairs and corporate communications division, which now has a presence in Brussels, Paris, London, Washington D.C, Prague, Berlin and Madrid, showed good growth with revenues increasing to £14.8m from £10.7m and operating profit rose from £1.3m to £2.1m.

Hasgrove’s digital and communication business, which operates under the Amaze brand, saw revenues jump from £6.2m to £16.3m with operating profit tripling to £1.8m from £600,000. Its design division also saw a hike in profits.

However, the group added that it is not immune current economic climate and a number of clients are reducing their 2009 marketing and corporate affairs budgets.

Chief executive Rod Hyde said: “The board began to cut operating costs promptly in late 2008 and will continue to ensure the cost base remains in line with revenues.  To date, the streamlining of operations has resulted in 23 redundancies across the group.

“As anticipated, we made a slower start than last year but are now gaining momentum following a number of new business wins and expect the outcome for 2009 to be in line with the board’s expectations.”