According to accounts filed on Companies House, WRG Worldwide has also seen a 14% drop in turnover, from £55.76m to £47.5m, as well as a pre-tax profit loss of £5m.
Russ Lidstone, WRG's recently appointed CEO, said the losses were down to a restructure. "WRG’s loss in operating profit was the result of a restructure in 2015 that was focused on positioning the business for growth. Last year’s £1.8m cost in exceptional items included the closure of our Middle Eastern office in Qatar, along with some consolidation across our UK offices."
He explained that these changes led to the operating loss, but that the business was expecting to see 'a significant turnaround' for 2016. "We obviously haven't finished the year but we're expecting to post operating profits in excess of £2m. We have also strengthened our capabilities in the US, Europe and Asia and we recently acquired Just Communicate, a healthcare events and communication business."
Lidstone added that he could already see the benefits from the restructure. I can see that the restructuring work done in 2015 has made the business more efficient, more integrated and even better at servicing clients. This year’s results will demonstrate the benefit of that activity, and 2017 is looking good."
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