Profits at marketing agency buck sector’s downward trend

SHIPLEY-based The Direct Marketing Group has seen year-on-year pre-tax profits jump by 53% to £2.6m bucking the advertising sector trend.

The marketing services company, whose agency brands include JDA, Millennium, DM Print and DM Data, said that its performance flew in the face of the recession.

It attributes its success to “swift and decisive cost-cutting” and its support of clients in recession-proof markets.

Another key factor however has been the performance of market-leading products such as Mortascreen – a service that ensures that the names of the deceased are swiftly removed from direct marketing mailing lists.

Gross profit for 2009 was up 3% to £15.8m. Annualised overhead savings for the period were in excess of £1m.

Commenting on the results Martin Smith, chief executive of The Direct Marketing Group, said: “This was always going to be a difficult year but I am delighted that action we took within the year to significantly reduce our overheads has allowed us to report an excellent set of results.

“One positive aspect of operating in such a challenging environment is the absolute need for more rigorous financial discipline and this has given us greater confidence in our ability to operate successfully even within difficult trading times.”