Banks Sadler confident over European expansion

The agency's Paris, Dusseldorf and Warsaw offices were established to provide clients with a pan-European service but the recession had stifled their progress, according to Banks Sadler chief executive Leigh Jagger.

The set-up costs associated with the new offices had also dented Banks Sadler's overall financial performance, with turnover dropping 9% to £25.5m in 2008.

Jagger said: "Our fledgling offices in Europe made the overall picture worse than it could have been. They are still finding their feet, and to be doing that in this market is very difficult.

"We forecast that they would move into the black but they haven't. However, it has been a very difficult climate and, in the long term, it is the right thing to do. Companies that invest in the downturn can reap rewards when things pick up.

"We are hoping they will take off this year and we should see them move into break-even."