The live communications agency said gross margins rose to £2.55m, up from £2.4m in 2012-13, while EBITDA for the year to March 2014 was £548,205, compared to £800,000 the previous year.
Smyle managing director Rick Stainton said the reduction in EBITDA represents the investment the agency has made in new talent and processes, including a number of senior appointments across its creative and production teams. "We had a 20-25% increase in new talent, adding a new creative lead and a head of operations," he explained.
Turnover for 2013-14 was £8.24m, compared to £8.6m the previous year. Stainton said a number of new client wins from across the media, telco and financial sectors, plus new business from existing clients helped to partially offset the cancellation of a significant £2m telco project due for delivery at the beginning of 2014.
"I'm proud of the reaction of the team and the flexibilty and resilience they have shown in developing business opportunities," Stainton added.
Last summer, the company celebrated its tenth anniversary, moved to a new London base and launched a three-year business plan aimed at doubling the size of the business.
"We're focusing more on relationship building and have invested in talent focused on client services and creative, rather than just being delivery focused," said Stainton. "We're also focusing on partnerships in the travel and experiential areas and our UKTI Taskforce membership, and are still looking at potential acquisitions."
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