The loss comes after amortisation and goodwill from previous acquisitions, including the purchase of ET Travel in 2014.
In addition to the rise in turnover from £15.3m to £17.8m, the global agency saw an increase in overall client spend from £127m to £133m. Operating profit was recorded at £2m, down from the previous year’s £3.2m.
Sam Robson, group events director UK, said the company had witnessed significant investment. "In addition to the acquisition of ET Travel, we’ve seen a great deal of expansion, launching offices in Singapore, Atlanta, and Nashville. This has been a hugely important part of our expansion plan, but the costs have been high and this has contributed to the lower operating profit."
She added that gross margins had improved, from 12.1% in 2014 to 13.5% in 2015. "We’ve also seen high spend on our TAG academy, where we take on graduates and invest in their training. We’ve expanded our team as a result of this programme but of course, this has been a cost to the business."
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